What type of asset will give me the best returns?

What type of asset will give me the best returns?


What type of asset will give me the best returns?

Yes, it’s an age old debate isn’t it? “Property is better than shares”, “Shares do better than property over the long term”, “My house doubled in value over the last 10 years! How can you beat that?”. “Cash is King! Why risk it?”  And so it goes on…

Let us pause for a second and have an objective look over the last 14 or so years to take a look at which asset class had the best result for any particular year:

asset class tile

(image courtesy of Morningstar)

The columns in the chart above show best (top row) to worst (bottom row) returns for any particular year for each asset class (coloured coded)

There are some interesting points to consider from the statistics above:

  1. It is very difficult to try and determine which is to be the next best performing asset class
  2. There are some themes over the last 20 years – notably that Small Caps & Listed Property tend to top the list more often than other asset classes
  3. At some point over the last 20 years, just about every asset class has had the honour (?) of being the worst performer

So really, it’s not so much about, “what should I be in now?” but more about, “…should I be in now?”. The answer, of course, depends on your personal situation so please seek financial advice before doing so. But to be in a range of asset classes or not…well that is the better question rather than what and when.


DISCLAIMER: The above comments are general in nature and DO NOT constitute financial advice. Before making any decision, we recommend you consult a financial planner or investment adviser to take into account your particular investment objectives, financial situation and individual needs. A full disclosure statement is available on request and free of charge.

Author: patrick

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