Home > General > Which asset types demonstrate the most consistent returns over the last 50 years?

Which asset types demonstrate the most consistent returns over the last 50 years?

Written by Contributor, on 13th Mar 2023. Posted in General

article headline

The past 50 years have seen the Cold War and many other critical world-level events, including the ending of the gold standard in 1971. This was the beginning of Forex markets as currencies were experiencing greater volatility. This volatility, actually, was present in the Forex market till the 2010s. Nowadays, currency markets have stabilized with increased liquidity and smaller volatility as trading algorithms took the financial world by storm. Stocks of tech giants were among the best performers for the last 50 years too, together with gold, and other assets we will discuss below.

Stock markets

Tech giants like Apple, Microsoft, and Amazon have shown the greatest returns over the last 50 years. The average annual return for these kinds of stocks was around 10%. Many politicians and other millionaires prefer to build well-diversified portfolios to include various blue chip companies' stocks that pay dividends. With this kind of investing, a retirement happy life is almost guaranteed. Many workers today, especially in the USA, have huge debts that they are paying for a lifetime and many of them sometimes forget to build substantial passive income assets. Pension funds sometimes lose money, and they are not a way to guarantee retirement, hence the importance of a strong diversified dividend-paying portfolio has increased tremendously. Anyone can start building passive income by investing a small portion of their salary and other incomes into stocks that have a stable history and are guaranteed to continue stable dominance on the markets. These stocks include Google, Amazon, Apple, Samsung, Tesla, OpenAI, etc.

Forex markets

Also being relatively new with its present shape and form, Forex is by far the biggest financial market in the world. Forex is difficult to master and become successful at, but if enough hard work is inserted into trading, possible returns are probably among the highest when it comes to trading. Currencies can be used to make passive incomes in two ways. One is to invest in deposits and two is to trade Forex markets. Trading requires studying like any other profession, and it becomes the fastest way to get lifetime returns.

Gold

Since the end of the golden standard, gold has been identified as one of the safest havens when it comes to market volatility and inflation. Many inventors are buying gold during crisis times, as its value tends to increase when inflation becomes high. Because of this, gold has a history of 4% annual returns. This is a small number but when millions are invested even the 4% becomes a substantial income source.

Real estate

No matter the age and century, real estate is always a valuable asset. For commercial real estate properties the annual returns for the past 50 years have been around 9-10% and for residential properties average annualized returns have been 6-7%. Real estate is here to stay, and it is always a good investment when done wisely and in developed, stable countries.

What should you invest in?

After knowing which were the top performers for the past 50 years, let's try and look into the future to select the best possible investing assets. The main idea is to 1. Preserve wealth and 2. Get annual interest rate returns to live on your portfolio.

Stocks of blue chip companies

This is an old and gold practice and has been checked for the past 50 years. With yearly yields of around 10% stocks are one of the safest ways to preserve wealth and even increase it. It is easy to build diversified portfolios, as many successful investors and politicians' investments are transparent and can be seen by the average person. So, following the rich and looking at how they invest their millions is the best and fastest way to achieve the same goal.

Cryptos

Cryptos are quickly becoming digital gold that can hold value and help people save wealth in high-inflation markets. The best and most dominant crypto to think of is Bitcoin, as it is among the few truly decentralized digital currencies. Staking is similar to interest rates on deposits, and it is one of the ways to get annual income from Bitcoin and other cryptos. Make sure the staking platform is truly decentralized and has been audited by reputable firms.

Deposits that pay more than 5% annually

In many developed countries this is not a good idea, since their offered annual interest rate is almost zero, but for developing countries that have a bright future these rates sometimes are very attractive and should be considered as the easiest way to save money and build wealth. But as we have mentioned, diversification is key to succeeding in today’s unstable economy.

Summary

For the past 50 years, there have been several high performers when it comes to consistent returns. Stocks of top US companies have been the champion, with an average annual 10%. Since many famous politicians like Nancy Pelosi hold well-diversified portfolios of top-performer stocks, it is a good idea to always check what people in the top circle of politics and billionaires are buying. Other good performance assets were real-estate and gold. They also have shown consistent returns, with annual returns exceeding 5%. For future tendencies, cryptos are becoming a more and more viable choice for investors, and Bitcoin should be considered as digital gold.

More articles from General

image Description

Boosting Workforce Productivity and Efficiency: Smart Printing Solutions for Businesses

Read more
image Description

Roulette revelations: Discovering the luckiest numbers for maximum wins

Read more
image Description

Choosing the Right Time and Attendance System for Your Business in Ireland

Read more
image Description

The Benefits of Choosing a Payroll Bureau in Ireland with Online Payroll Software

Read more
image Description

Tips for Building a Successful Travel Business in Ireland

Read more