Total Return Performance of Various Assets Despite Warren Buffett’s skepticism towards gold as an investment, the precious metal has outperformed both U.S. equities and U.S. Treasury bonds over the past 25 years. Image: Deutsche Bank
Real Returns for U.S. Dollar-based Assets by Quarter Century While there have been periods of volatility and negative returns, real stock market returns over the past 25 years have been positive and in line with long-term historical averages. Image: Deutsche Bank
Money Market Fund Assets U.S. money market funds usually see outflows within 12 months after the Fed’s first rate cut, as investors rebalance their portfolios and reassess risk in light of changing interest rates and market dynamics. Image: The Daily Shot
U.S. Households Aggregate Financial Asset Allocation Current high levels of U.S. household equity allocation suggest potential risks for future investors, as historical trends indicate this often precedes lower market returns. Image: Goldman Sachs Global Investment Research
Asset Class Returns While gold can be a useful component in a diversified portfolio, long-term investors should focus on building a well-balanced mix of assets aligned with their goals, risk tolerance, and time horizon. Image: J.P. Morgan Asset Management
Ranked Cross Asset Returns by Year Gold’s remarkable performance in 2024 is largely due to strong central bank purchases, its established reputation as a safe haven during uncertain times, and its effectiveness as an inflation hedge. Image: BofA Global Investment Strategy Click the Image to Enlarge
U.S. Money Market Fund Assets and Fed Funds Rate The current environment suggests that a substantial amount of capital is poised to flow back into equity markets, driven by expectations of favorable economic conditions and monetary policy adjustments. Image: Goldman Sachs Global Investment Research
GWIM Cash Allocation as % Asset Under Management BofA’s private clients have reduced their cash allocation, remaining below the long-term average, while increasing their equity exposure. Image: BofA Global Investment Strategy
GWIM Equity Allocation as % Assets Under Management BofA’s private clients show optimism about equity market growth and potential returns, as evidenced by their 63% portfolio allocation to equities. Image: BofA Global Investment Strategy
U.S. Money Market Fund Assets vs. Federal Funds Effective Rate U.S. money market funds are sensitive to changes in interest rates, and historical trends indicate that they often experience outflows approximately 12 months after an initial Fed rate cut. Image: Real Investment Advice
Cumulative Fund Flows Across Assets Equity and bond funds continue to attract significant inflows. Image: Deutsche Bank Asset Allocation