p spx: Are these investors onto something Have financial planners been wrong all these years For this column I mine the historical data for answers, according to Market Watch. On the face of it, the respondents to the survey need to go back to their history books, as pointed out in a recent column by my colleague Catey Hill. For every two respondents who answered stocks there were more than three who said real estate is the way to go. Since 1890, U.S. real estate has produced an annualized return above inflation of just 0.4%, as judged by the Case-Shiller U.S. National Home Price Index and the consumer-price index. But it's not the end. The S&P 500 SPX, -2.93% or its predecessor indexes did far better, outpacing inflation at a 6.3% annualized rate when including dividends . Even long-term U.S. Treasury Bonds outperformed real estate, producing an annualized inflation-adjusted total return of 2.7%. Check out the chart below Caption outside of wrapper for normal article images If this were the end of the story, then this column could end here.
(news.financializer.com). As
reported in the news.
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