Money Minute – June 30 2017 “35 Years of Finance”
Think about this. In 1982 – when The Today Show started…the world was so different.
The government set the rate of the dollar. It was worth around 97 US cents then. 76.5 US cents today.
It wasn’t until the next year – 1983 – that our dollar was floated and the market determined its value.
Inflation was higher…so prices moved up more quickly. don’t tell that to people about to cop a 20 per cent jump in their electricity and gas prices from July 1 – Saturday.
If you take inflation into account…$1000 in 1982…is now worth $3408.
House pries were cheap in 1982. $79,000 average in Sydney; $46,000 in Melbourne; $55,000 in Brisbane; $42,000 in Adelaide; $48,000 in Perth and $40,000 in Hobart.
But if you put that $1000 into the Stockmarket in 1982, it would now be worth close to $12,000…Without taking into account the dividends those shares would have delivered.
There was no Commonwealth Bank on the Stockmarket. It was owned by the Government. so too were Telstra, Qantas, CSL and Medibank Private.
There was no Westpac – it was still the Bank of New South Wales. and in 1982 The National Bank merged with CBC Bank of Sydney.
And if I told you – in 1982 – that some of the best performing shares in the latest financial year would be marijuana companies…you would have said I was smoking that stuff!
But it’s true. In the last 12 months, since decisions to legalise medicinal marijuana, AUSCANN,, CANN Group, MMJ Phytotech and others have been on fire…though there has been a bit of a let down in the past month or so. They had been over-hyped, truth be known.
The world has moved on in 35 years, its true. But the time goes by so fast.
I should acknowledge Michael Pascoe…who did the finance for Nine and Today for 18 years before me.
Dow Jones down 167 points…Dollar 76.8 US cents.