Investing and Volatility

Oct 2020

Of all the money invested in the world, the largest three categories of investments are stocks, fixed-income investments (like bonds and savings accounts), and real estate. Everything else, including gold, jewelry, fine art and various collect­ibles, amounts to small potatoes and has not histori­cally produced decent returns. In today’s very low interest rate environment, many fixed-income invest­ments will likely return less than the rate of inflation, so this leaves stocks and real estate for those seeking long-term real growth. … Yes, stocks and real estate prices have always been volatile, but it’s this volatility that investors historically have been well compensated to shoulder.