I'm not sure what you mean by dividends includes capital gains Bruce but its time to get back on track.
A few little developments worth noting. Fitch has moved BoI down from positive to stable outlook. Mainly due to brexit fears. Yesterday they did maintain a positive view on out debt so no real problem. On the positive side the bank may benefit fron developments in the UK. Lloyds and others have decided that the time of super low interest rates are over and have decided to up rates by 30bps. Its a small but important turning point and I think be good for NIM next year. On the down side. Android pay was launched in Ireland today and BoI is not ready and has no plans to integrate it. Big mistake. In a mobile world it makes us look old fashioned and not modern. AIB are even advertising their service on TV already. Tech is one area where boi is very vulnerable. i know they plan to spend billions on it but missing out on today is not a good start.
Further Mr McLean makes the point about dividends but this INCLUDES the capital gain so the return well worth having. Taking A Wealth of Comminsense between 1915 and 1982 the S & P went up only 0.6% above inflation per annum. BUT since 1982 the figure is no less than 6.5% above inflation per annum.
I accept your inflation figures. taking the Stock market almanac in the 1970 s the FTSE All share improved 185.7% and in the 1980s 144.3%. On the other hand in the 1920s and 1930s in the US the indices hardly went up at all whilst the economy was in deflation. For example DuPont went for about 30 years hardly increasing at all.
Life is cheaper generally speaking in Frankfurt than Dublin. There is also a massive housing crisis in Dublin...average monthly rental for a 3 bed house is approx 1, 500/600 euro (in an average area) but very few properties available since the boom to bust.
In addition the transport system in Frankfurt is much better than the one in Dublin. Dublin has one of the busiest airports in Europe in terms of overall population population. 30 million passengers per year come through Dublin airport YET there is no metro or light rail system to link up with the city centre which is 14 kilometers away. Crazy stuff.
Paris will also do very well as their transport system is extremely efficient...regular RER to la Défense..... Dublin has plenty of highly qualified people available but the infrastructure is lacking.
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