Comparing the Returns of Gold, Stocks and Bonds by Decade

Gold has had an excellent run so far this year. The yellow metal is up over 28% year-to-date as investors pile into it as a hedge against risky assets and uncertainties brought by Covid-19.  In general, gold as an asset class performs well when stocks and bonds do not.

I recently across an article by Matthew A. Young at Young Investments where he discussed the performance of gold over stocks and bonds in the past few decades. From the article:

Like many financial assets that have risen over the long run, the 50-year price explosion in gold hasn’t been a straight line. Gold has compounded at 8.5% since August 1971, which compares favorably to stocks and bonds; but as the table below shows, gold has also experienced long dry spells.

The 1970s were gold’s best decade, with the price compounding at more than 35%. Over the next two decades, gold was down in price. During the 2000s, gold prices soared again, rising at a compounded annual rate of over 14%. During the 2010s, gold didn’t perform as well as it did during the 2000s, but it kept pace with inflation and edged out bonds.

 

Source: July 2020 Client Letter, Young Investments

The above table clearly shows gold is an important asset to own as its performance is inversely related to stocks and bonds for the most part.

Related ETF:

  • SPDR Gold Trust (GLD)

Disclosure: No Positions

Some of The World’s Longest Serving Leaders: Infographic

The following infographic shows of the world’s longest leaders. After Ukraine had a color revolution a few years ago, protests are ongoing in Belarus to remove the dictator Alexander Lukashenko who has been in power for more than 26 years. President Emomali Rahmon of Tajikistan assumed office in 1994. Among the leaders showing in the chart, President Trump has been in office the shortest duration.Many Amerians hope that the maximum time he stays in the White House is 4 years. 🙂

Click to enlarge

Source: 26 Years Of Lukashenka…And Counting, RFE/RL Infographics

Quick Post: 17 Stocks That Reached 52-Week High Recently

The following 17 notable stocks reached their 52-week highs on Aug 12th, 2020. These stocks are from a wide range of industries ranging from logistics to paints. Rising online shopping is a big boon to delivery firms like Fedex and UPS. As people are stuck at home and unable to travel, many are renovating and remodeling their homes. This benefits hardware stores like Home Depot and paint makers like Sherwin Williams.

1.Company: Air Transport Services Group Inc(ATSG)
Current Dividend Yield: N/A
Sector: Air Freight and Logistics

2.Company: Atlas Air Worldwide Holdings Inc(AAWW)
Current Dividend Yield: N/A
Sector: Air Freight and Logistics

3.Company: BlackRock Inc (BLK)
Current Dividend Yield: 2.46%
Sector: Financials

4.Company: Canadian National Railway Co (CNI)
Current Dividend Yield: 2.46%
Sector: Railroads

5.Company: Canadian Pacific Railway(CP)
Current Dividend Yield: 0.97%
Sector: Railroads

6.Company:Colgate-Palmolive Co (CL)
Current Dividend Yield: 2.28%
Sector: Household Products

7.Company: Dollar General Corp (DG)
Current Dividend Yield: 0.73%
Sector: Retail

8.Company: FedEx Corp (FDX)
Current Dividend Yield:
Sector: Air Freight and Logistics

9.Company: Factset Research Systems Inc (FDS)
Current Dividend Yield: 0.86%
Sector: Financial Research

10.Company: W W Grainger Inc (GWW)
Current Dividend Yield: 1.72%
Sector: Industrial Distributors

11.Company: Home Depot Inc (HD)
Current Dividend Yield: 2.13%
Sector: Hardware retail

12.Company: Illinois Tool Works Inc  (ITW)
Current Dividend Yield: 2.30%
Sector: Industrial Machinery

13.Company: McCormick & Company Inc  (MKC)
Current Dividend Yield: 1.23%
Sector: Food products

14.Company: Kimberly-Clark Corp (KMB)
Current Dividend Yield: 2.69%
Sector: Household Products

15.Company: Polaris Inc (PII)
Current Dividend Yield: 2.31%
Sector: Leisure Products

16.Company: Sherwin-Williams Co (SHW)
Current Dividend Yield: 0.80%
Sector: Paints

17.Company: T. Rowe Price Group Inc (TROW)
Current Dividend Yield: 2.60%
Sector: Financials

Note: Dividend yields noted above are as of Aug 13, 2020. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long CNI