First post. I bought CBA and ANZ just after the GFC in 2008 and made a good return on that money. Apart from that I don't have a lot of experience in picking stocks. I am thinking about how to reinvest the profits from my online business and I have a few questions and doubts.
1) Can historical returns give us an idea of future returns given the situation we are in? If I were to invest in an index fund for the ASX 200 I could expect to average 10% per year over a 10, 20, 30 year period, right? But with the US in trouble, Europe seeming like its declining and China's boom seeming to pop at any moment will the next 10-30 years be "normal" or were we lucky in the past 30 years? So, can I invest each year in an index fund and expect compounding to make me rich?
2) If I create a portfolio to buy and hold for 10 years, is it rational to think that I could beat the market (assuming historical market conditions, no random events etc)?
3) Isn't it better to leverage real estate (waiting until after the property correction we surely will have) than a stock portfolio as real estate would give me better leverage and therefore better returns? Why should I invest in stock and not real estate?
4) Is leveraging CFD's better than having a margin account with shares? I saw this written on Reddit and honestly the risk and cost of a margin account seems greater than the leverage I could get.