A Question "Easy" Answer: "Choice Difficulty" Do You Want To Invest In Gold, Real Estate, Treasury Bonds, Or Stocks?

"Yi" answer: may as well find the law from the historical data!

In our daily life, we get labor income by going to work and working hard. In addition, we can also invest in financial management to obtain property income. By investing in stocks, bonds, gold and other assets, on the one hand, we can maintain and increase the value of our labor accumulated income, on the other hand, we can also obtain investment income.

The top priority is, what are the returns of different types of assets and how should investors choose?

The domestic securities market has a relatively short period of time. In this period, we review the historical data of the United States from 1890 to 2020. During the 130 years, the average annual increase of CPI in the United States was 2.6%. Whether it was invested in financial assets such as stocks and long-term treasury bonds, or physical assets such as gold, crude oil or real estate, inflation could be beat.

Among them, the annualized yield of stocks was the highest, reaching 9.5%, while that of 10-year Treasury bonds was 4.7%. The annualized yields of gold, crude oil and real estate were slightly higher than inflation, which were 3.5%, 3.0% and 3.2% respectively.

The long-term yield of stock is significantly higher than other assets, and the wealth appreciation effect is far ahead.

In 1890, one dollar was invested in the S & P composite index. In 2000, it will become $38800, and by 2020 it will increase to $128000. The same $1 invested in 10-year Treasury bonds will only become $395 in 2020, only $85 in gold and $62 in real estate.

The income of stock comes from enterprise profit, which is based on the sustainable development of economy.

The historical data of the United States show that holding stock assets can maximize the share of the fruits of economic growth. There are two main ways to invest in stock assets. One is to buy and sell stocks directly. However, the general individual investors are limited by professional knowledge, capital size, time and energy and other factors. This way is very risky. The other way is to invest through stock mutual fund products, which have the characteristics of professional management, risk diversification, strict supervision and information transparency, which can let investors participate in the stock investment with a small amount of funds.

From December 31, 2004 to May 12, 2021, the annualized yield of CSI 300 total return index reached 12.58%, and the cumulative yield was 558%.

Looking forward to the coming decades, China's economy will rely on the advantages of super large-scale market and the potential of domestic demand, and under the guidance of science and technology innovation strategy, maintain a high-quality and sustainable growth trend. Meanwhile, the stock issuance registration system and the normalized delisting mechanism will further enhance the vitality and quality of China's stock market. Long term investment in China's stock assets can better overcome inflation and obtain better returns.

(Note: data sources cited in this issue: e-fund internet teaching base, ourworldin data, measuring worth, Robert Shiller, EIA, Fred, CEIC, research department of CICC; The income of each asset is converted into a fixed base index based on 1890 as the base year, and the U.S. stock is converted according to the S & P composite stock index + component stock dividends; The 10-year Treasury bonds are converted according to the interest of 10-year Treasury bonds plus capital gains; The case Shiller house price index is used for house prices; The past performance of the index does not predict the future.)

Knowledge patch: what is the stock type public offering fund?

By selling fund units, public funds collect the funds of many unspecified investors to form independent property. The fund manager is entrusted with investment management, and the fund trustee is entrusted with property custody. The fund investors share the investment income and investment risk.

According to the provisions of the fund contract and the fund prospectus, more than 80% of the fund assets are invested in stocks.