Relative Asset Class Performance Since 1850

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I found these charts showing relative performance of asset classes since 1850 recently. While I will not comment much, I think they provide terribly interesting perspective. They give a long term view of performance for many of the major asset classes. That is something you do not see often, and not in one place. Yes, they are all doing quite well. All near all time highs, in fact, except for the 10 year US Treasury yield. In some respects you might say this seemingly across the board strength contradicts my earlier assertion that gridlock in Washington has caused business to hit the pause button. In fact, I think it supports my point because big run-ups in profits, cash hoards, and, for some, continuing buyback programs have had a downward influence on P/E ratios which, in combination with the Quantitative Easing programs, enables the sharp rebound since the 2008 correction in equity markets. With that, here you have it:

Major Asset Classes - 1850 to Present

Since you, like me are saying ‘what about inflation?’ I give you an adjusted presentation:

Inflation Adjusted Major Asset Classes - 1850 to Present


Ralph M Dillon
Global Financial Data, June 12, 2013

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