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ASX slide hitting your super returns

The correction in the ASX 200 index (Index: ^AXJO) (ASX:XJO) – which has seen the index slide 10% from its recent peak – is showing up in your super returns. The Australian Financial Review is reporting that 2013 super returns are down about 3.5 percentage points:

“In mid-May, when the S&P/ASX 200 benchmark had soared to 5220, the average balanced super scheme was on track to record a 17.7 per cent rise for the 12 months to June. But a sharp fall in sharemarkets over the past month… has pared back the rise to 14.1 per cent.”

Still, the news isn’t all bad. That 14% return is well above the long-term annual average market return, so all in all, nothing to sneer at. What’s more, for individual investors buying shares, the pullback could present buying opportunities.

Just in the last month, Wesfarmers (ASX: WES) is down some 10% and Woolworths (ASX: WOW) is down 6%, while big Aussie banks have fallen even more, with Commonwealth Bank (ASX: CBA) nearly 7% and Westpac (ASX: WBX) down 6%.

WES, CBA, WBC, WOW, AXJO

To wit: As share prices fall, dividend yields rise, so investors seeking income might be ill advised to rush to cash now, with the market beginning to move more in their favour.

Looking for income ideas now? The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

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Motley Fool contributor Catherine Baab-Muguira owns no shares in any company mentioned in this article.

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