Skip to content

All locations will be closed Thursday, November 28, for Thanksgiving. We will be open regular hours on Friday, November 29.

Registration for free estate planning seminars is now open.

Get Started 863-222-7005

Chart of the Day: The Everything Portfolio (Part 2)

Line graph showing return indices for the global market portfolio (blue) and its asset categories - Equities in brown, Real Estate (purple), Nov-government bonds (gray), Government bonds (green) and Commodities (gold) from 1970 to the present.

Contents

Today’s Chart of the Day is a follow up from the previous post and is from an academic paper called “The Risk and Reward of Investing” published by Doeswijk and Swinkel in July 2024.

It shows in blue the total returns above or below the Global Market Portfolio, which consists of all the investable assets in the world. While the past is no predictor, the past shows that since 1970, the only two asset classes that have outperformed have been stocks (brown) and real estate (purple).

Not to say that this will hold true in the future because looking back, there were times when commodities (gold) significantly outperformed in the 1970’s and bonds (gray) outperformed in the Great Recession and Dot.com era. However, on the longest timeline, stocks and real estate have been the clear winner.

Leave a Comment