Jun 3, 2022

Cory Diary : 20-year annualized returns by Asset class

Interesting finding this week is which are the best investment over a long term period of 20 years. And Reits came on top based on below chart.



Since this is US focus, SG Reit likely performs better after Forex based on historical exchange rate below.

US Dollar - Singapore Exchange Rate - Historical Chart

US Dollar - Singapore Exchange Rate - Historical Chart



The other context to consider is that Homes may not be that bad for Singapore due to lower tax rate and Asian Market in general favors properties.

Even Gold and Oil have better returns. So why do we still need to invest in S&P 500 for long term ? You tell me ? Maybe we need 100 years track record however past performance is still never implied future returns will be.


Please DYODD. Cory is also trying to decipher ...


Cory

2022-0603

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2 comments:

  1. If you measure 20 years from 1930-1949, bonds will be the best asset class.

    It all depends on your luck when you born & when you invest.

    From 1980-1999, S&P500 CRUSHED reits, gold, oil.

    Moral of the story? Have a diversified allocations.

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    Replies
    1. Yes, you are spot on that it depends on when you are born. There is another school of thoughts is to take the 100 years trend which S&P500 won hands down. However our lifespan is short and it maybe more appropriate to therefore take diversified strategy as you mentioned for myself. But if I am to choose just a single asset class together with the Risk, later 20 years maybe more relevant and need to closely monitor the condition to support the investment.

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