Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto

Invest in Bitcoin and Gold, But Don’t Forget Equities

As we see global debt swell and government debt swell, there is a declining confidence in fiat money.

This is the reason for gold, silver and cryptocurrencies being in the limelight.

However, as investors diversify across asset classes, it’s a reminder that equities should be an integral part of the portfolio.

I want to share an interest chart below from the World Gold Council that gives the annual returns of different asset classes since 1971.

Performance of Asset Classes Since 1971

U.S. stocks have returned 10.9% annually since 1971.

Emerging market stocks have been the best performers with returns of 13.8% annually since 1971.

Gold has also been a performer with annual returns of 10.6%.

My key conclusion is as follows –

First, investors need to be exposed to emerging market and developed market equities. Over the long-term, equities will trend higher. Even in an inflationary scenario, it makes sense to be invested in equities.

Second, one of the most undervalued asset class is commodities. Since 1971, commodities have provided an annual return of 0.5%. Therefore, it makes sense to be invested in commodities.

Overall, Bitcoin might continue to trend higher and will attract investor attention. However, investors need to be cautious and avoid going overweight on any one asset class.

Equities will be interest if there is some correction in the coming months.

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I am a financial analyst with interest in global financial markets and macro economy. I write for various publications providing short-term and long-term investment ideas among different asset classes.

Portfolio Diversification Strategy
Portfolio Diversification Strategy

For every investor, its important to have diversified portfolio strategy. One of the most important reasons to go for portfolio diversification is to reduce the risk. Another critical reason to pursue portfolio diversification is to generate returns from different asset classes that beat the rate of inflation. This will ensure that purchasing power is preserved for an individual. At the same time, when a portfolio has risky assets like equities or commodity, it ensures that returns can be maximized.

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