Historical returns of different Asset Classes (2008-2020)

Coin Toss

Investors can choose from a wide variety of investments. In the design of the right Investment Portfolio, it is important to know and understand the past performance of each asset class. This charts provides some references. This analysis includes assets of various types, geographies, and risk levels. It uses real total returns, meaning that they account for inflation and the reinvestment of dividends.  The Graph is inspired by and uses data from The Measure of a Plan & Visual Capitalist.

It is interesting to note that:

– no particular investment has consistently outperformed

– ranking has changed over time (depending on a number of economic variables, difficult to predict).

Investment Tips: we all know the financial mantra: “past performance is not a guarantee of future results”. This graph clearly shows that you can’t rely on assets that had a good performance in the past to continue having good performance in the future. Ultimately, having a variety of asset classes can ensure you are best positioned to take advantage of market changes & opportunities in any particular year. Yes, I strongly believe in a well diversified Investment Portfolio.  

Financial Wisdom + Discipline = Financial Freedom

 

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