Analysis covering historical investment returns by asset class (from 1985 up until Q1 2024) for 12 asset classes — covering stocks / bonds in the U.S., Canada,

Analysis covering historical investment returns by asset class (from 1985 up until Q1 2024) for 12 asset classes — covering stocks / bonds in the U.S., Canada, and beyond. Insights for year of 2023: - All 12 of the tracked asset classes increased in value in 2023 (on a real total return basis) - An investment in U.S. large cap stocks was the top performing asset of 2023, returning +22.1% (after suffering a loss of 23.6% in the previous year) - Global stocks outside of the U.S. delivered relatively weaker returns (compared to the U.S.) — with International stocks at +13.8%, Canadian stocks at +8.1%, and Emerging market stocks at +5.2% - Cash (T-bills) was the worst investment of 2023, returning only 1.6% on an inflation-adjusted basis Other insights: - 11 out of 12 of the asset classes have been a top performer in at least 1 year on record (high yield US bonds being the odd man out) - On the flip side, 9 out of 12 of the asset classes have been the worst performer at some stage (Canadian stocks, Canadian bonds, and high yield US bonds being the only assets to avoid the dishonour) - It’s interesting to see how “US large cap stocks” have performed relative to “All US Bonds” over time. While stocks were down in the years of 1990, 2000-2002, and 2008, bonds actually made gains in those years — this provided valuable portfolio protection to investors who were diversified - Over the whole period of the analysis, the best asset classes have been: U.S. large cap stocks (+8.3% per year), US small cap stocks (+7.4% per year), and emerging market stocks (+7.1% per year)