Comment on What’s the best long-term investment?

What’s the best long-term investment?

What's the best long-term investment? Because you're a money nerd (and a GRS reader), I hope your answer to this question was, “Stocks!” If the future is anything like the past, that's the correct answer. History has shown that stocks are the best long-term investment — and by a wide margin. Unfortunately, most Americans believe otherwise. As a part of its annual Economy and Personal Finance survey (conducted during the first two weeks of April), Gallup News asked 1017 American adults, “Which of the following do you think is the best long-term investment: bonds, real estate, savings accounts or CDs, stocks or mutual funds, or gold?” Here's how people answered: 35% of respondents said that real estate is the best-long term investment 21% said that stocks or mutual funds are the best long-term investment 17% said that savings accounts or certificates of deposit are the best long-term investment 16% said gold is the best long-term investment 8% said bonds are the best long-term investment While acknowledging that past results are no guarantee of future performance — let's take a look at why I think Americans haven't got a clue when it comes to figuring out the best long-term investment strategy. The Rate of Return on Everything The August 2019 issue of The Quarterly Journal of Economics included a paper entitled “The Rate of Return on Everything, 1870-2015”.

 

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