Ten-year Performance

Good Morning Ladies and Gentlemen

On Tuesday, I looked at the 10-year performance of various asset classes. Today I want to share them with you. Again the numbers stem from Tuesday, but even if they should have changed slightly over the last few days, I do not think this will significantly change the performance over the entire 10-year period.

Silver

The 10-year performance of silver was negative and comes in with a big minus of  25.43%.

Gold

Gold did better. The 10-year performance comes in with a plus of 15.8%.

EuroSroxx 50

Let us look at some equities; the 10-year performance of the EuroSroxx 50 stands at plus 52.6%.

SMI

Next is the SMI, with a 10-year performance of plus 52.8%.

U.S. Stoxx 500

The U.S. Stoxx 500 10-year performance comes in with a plus of 62.9%.

DAX

The 10-year performance of the DAX stands at plus 94.46%.

Dow Jones

Furthermore, the Dow Jones Industrial, probably one of the best-known indices globally, 10-year performance stands at plus 143.7%.

Nasdaq Composite

Last but not least, the 10-year performance of the Nasdaq Composite comes in with a plus of 262.3%.

Style versus theme

What can we learn from this? A style-based or theme-based approach may make sense, depending on your investment goals. What else can we learn from this? Theme-based methods may yield extraordinary results at times. However, if you are invested in a theme during the wrong cycle, performance can be meagre and lead to frustration.

The example of silver

If you had acquired your silver investment ten years ago and did not change it, it lost roughly 25% in value. Over the same time, you had opportunity costs of over 50% versus an investor who had invested in a EuroSroxx 50 ETF.

…but who knows, after ten years of underperformance, silver may be ripe for serious outperformance?

Please feel free to share your ideas and thoughts with me, but please remember (instead of hitting the reply button) to send your messages to smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day, a wonderful weekend, and above all, joy.

Yours truly,

Stefan M. Kremeth
CEO & Head of Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li