My Investing Muse

  We have investments in different asset classes. The below is a good summary provided by The Motley Food. Investing is a good way to grow our net worth and hopefully, provide us the means to achieve a certain lifestyle. For most of us, we are fortunate to be living in a place we can call our own. Some of us can still be servicing the mortgage but real estate is an asset class that has been “compounding” value over the years for me. Personally, my biggest and best returns asset class are through my real estate with a reasonable rental yield and asset capital appreciation. With the US government issuing bonds after raising the debt limit, I am curious to know how this can impact and attract liquidity in the market. Thus, I started researching with Google Bard to understand the different asset classes in play. Most of us (who read this article) are probably investing in equities. However, do we know that the bonds and real estate market are bigger than the equities market? Yet, the e...

In the world of investing, there are various asset classes available for wealth creation & preservation .  We have equities (stocks), bonds (government or private bonds with promised rates of returns), real estate, commodities (like gold, wheat, oil, etc) and cryptocurrencies (just to name a few).  Personally, I am currently investing in both equities and real estate. Risk and Returns by asset classes (2010 - 2019) The above is an excellent overview of the risks and returns by different asset classes between 2010 to 2019.   The table below shows the returns and the volatility (seen in the standard deviation). Returns and Volatility by asset classes (2010 - 2019) You can find more details on the following website by Visual Capitalist: https://advisor.visualcapitalist.com/asset-class-risk-and-return/ Pending on our risk appetite, we need to choose the asset classes that fit our risk-returns tolerance.  If we are unable to sleep well after investing, it is like...