A drafted comparative reference for five major asset classes. Each element is drawn to its own scale with respect to volatility, liquidity, income generation, and historical return. This drawing is issued for educational reference only. Not for construction of an investment portfolio without consultation.
Fractional ownership of publicly traded companies. Highest historical long-run average on this drawing, paired with the highest volatility. Returns come from price appreciation and dividends.
Loans to governments and companies that pay interest. Lower volatility than equities, lower long-run average. Inverse relationship with prevailing interest rates. Credit quality varies by issuer.
Direct property ownership or indirect REIT exposure. Combines rental income with potential appreciation. Direct ownership is illiquid and high-ticket; REITs trade like stocks.
A tangible store of value with no underlying cash flows. Often discussed as an inflation hedge or diversifier because price moves are not strongly tied to stocks or bonds. Long-run returns vary widely by period.
Bank deposits, money market funds, short-term Treasuries. Lowest nominal volatility on this drawing. Yield varies with central bank policy and prevailing inflation. Real purchasing power can erode over time if inflation outpaces the rate.
| Specification | 101 · Stocks | 102 · Bonds | 103 · R.E. | 104 · Gold | 105 · Cash |
|---|---|---|---|---|---|
| Avg. return | ~10% | ~5% | ~8% | ~3-5% | ~4% |
| Volatility | High | Low-Mid | Mid | Mid-High | V.Low |
| Liquidity | High | High | Low * | High (ETF) | Highest |
| Income type | Dividends | Coupon | Rent | None | Interest |
| Inflation | Mixed | Hurt | Often helps | Often helps | Erodes real |
| Min commit. | V.Low | Low | High (direct) | Low (ETF) | None |
| Tax notes | CG, div. | Interest | CG, rent | Collectibles | Interest |
N1. Drawing is issued for educational reference only and is not personalized financial, investment, or tax advice.
N2. All return figures are approximate long-run nominal averages, rounded for readability, before fees, taxes, and inflation.
N3. Volatility, liquidity, and risk profile vary by sub-asset class and time period. Past performance does not guarantee future results.
N4. All asset classes shown can lose value. Each carries different kinds of risk.
N5. Consult a licensed financial advisor before making decisions about your own portfolio.