By Kevin Theissen
Professor Jeremy Siegel of the Wharton School put together a chart of real returns for various investment asset classes, adjusted for inflation, that shows what would have happened if you had invested one dollar in 1802 and held it through Dec. 31, 2012.
The results:
- One dollar invested in Treasury bills would now be worth over $300.
- One dollar invested in long-term bonds would now be worth over $1,600.
- One dollar invested in the U.S. stock market would now be worth over $700,000.
- One dollar invested in gold would now be worth over $5.
- One dollar placed under a mattress would now be worth less than five cents, its value eroded by inflation.
Looking ahead
What will be the best-performing asset class of the next 200 years? Which ones are right for you?
We recommend a diversified portfolio for our clients based on their goals and needs in the short-term and long-term.
Contact an experienced and fiduciary financial advisor for a second opinion on how you could be investing to reach your goals and dreams.
Kevin Theissen is principal at Skygate Financial in Ludlow.