Comparison of Real Equity Returns over a Century Between US, UK and Italy

Equities beat other asset classes such as bonds and short-term deposits over the long-term.Stocks not only yield higher returns than those asset classes but also yield higher returns on an inflation-adjusted basis.

The following graphs for three developed markets over the course of a century proves this point:

Real Equity Returns in US (top), UK (middle) and Italy (bottom), 1900 – 2002

Click to enlarge


Source: Triumph of the Optimists,  by Elroy Dimson, Ph.D. Professor, London Business School, October 2003,  ArrowStreet Capital, L.P.

Related ETFs:


iShares MSCI United Kingdom Index (EWU)

iShares MSCI Italy Index (EWI)

Disclosure: No Positions

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