Chart of the Day

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

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.