Best Investments for Long-Term Gains
- bphilton5
- Aug 19, 2024
- 2 min read
If you invested $50,000 in 1990, which investment would have yielded the best returns: Gold, the S&P 500, U.S. Treasury Bonds, or Real Estate? How do these options stack up over the long term? If that initial $50,000 had been left in the same investment until the end of 2023, what would the results be, and would there be a noticeable difference in returns?
Increase on a $50,000 Dollar Investment From 1990
1. $1.34 Million - S&P 500 with Dividends
2. $450 Thousand - US Corporate Total Bond Index
3. $260 Thousand - Gold
4. $240 Thousand - 30 Year United States T-Bills
5. $170 Thousand – House
The returns on these different investments can make a significantly impact the value of your investment from 1990 to 2023. The S&P 500, including dividends, delivers a return that is 688% higher than investing in real estate. While housing is a necessity, whether through owning or renting, the S&P 500 is not. Owning a house involves additional costs, such as maintenance and property taxes, which the S&P 500 does not incur. Therefore, returns on housing should be considered differently. Furthermore, the S&P 500 offers a return 197% higher than the second-place U.S. Corporate Total Bond Index. Although the U.S. Corporate Total Bond Index performed similarly to the S&P 500 until 2013, its performance has remained relatively flat since then.
These comparisons are based on straightforward investment options and do not account for more complex returns like rental income, business ownership, or other unique investments. Nonetheless, the data indicates that, among basic investment choices, the stock market has historically delivered superior returns. It remains to be seen whether this trend will continue over the next 30+ years.
Data Source
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