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The Ultimate Return Destroyer

by | Apr 1, 2023 | Investment News

Investment volatility on its own is benign.

It needs you to react to it to turn it into a dangerous wealth destroying monster.

It’s you that makes the difference.

This is why there is such a huge disparity between investment return and investor return. See here:

This chart shows the 20-year annualized return by asset class (2001–2020). REITs returned 10%. EM equity returned 9.9%. Small cap returned 8.7%. High yield returned 8.2%. The S&P 500 returned 7.5%. A 60/40 portfolio returned 6.4%. A 40/60 portfolio returned 5.9%. DM equity returned 5%. Bonds returned 4.8%. Homes returned 3.7%. The average investor returned 2.9%. Inflation ran at 2.1%. Cash returned 1.4%. Finally, commodities returned -0.5%.

If you can’t handle that responsibility seek help.

 

BORING BUT EFFECTIVE | TRUTHFUL, HELPFUL, KIND

ADVICE@TOWNCLOSEFP.CO.UK 

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