Global Investment Returns Yearbook: A Year of Diversification

The Global Investment Returns Yearbook is a treasure trove of information for investors looking to diversify their portfolios. It's a comprehensive guide that provides a detailed analysis of global investment returns.

According to the yearbook, the average annual return on global stocks over the past 20 years is around 7.4%. This is a significant return, especially when compared to other asset classes.

Investors can benefit from diversifying their portfolios by including a mix of stocks, bonds, and other assets. The yearbook highlights the importance of diversification in managing risk and achieving long-term investment goals.

The yearbook also notes that the S&P 500 index has outperformed other major stock market indices over the past 20 years, with an average annual return of 8.5%. This is a key finding for investors looking to invest in US stocks.

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The global equity market delivered a median return of 12.1% in 2020, with emerging markets leading the way at 18.2%.

The US market saw a significant recovery, with the S&P 500 index rising by 16.1% over the year.

Emerging markets have consistently outperformed developed markets in the long term, with a 10-year median return of 8.4% compared to 4.6% in developed markets.

The global bond market provided a more subdued return, with a median return of 2.1% in 2020.

The US dollar strengthened against most major currencies in 2020, making international investments more expensive for dollar-based investors.

The median return for global real estate investment trusts (REITs) was 4.1% in 2020, with regional variations playing a significant role in the performance.

The 2020 global investment returns yearbook highlights the importance of diversification in investment portfolios, with a 10-year median return of 6.4% for a diversified portfolio compared to 4.6% for a US-only portfolio.

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Diversification is a long-standing tenet of investment theory. It's not a new concept, but its importance continues to grow.

Long a central tenet of investment theory, many assumptions about the benefits of diversification are being re-examined. This is particularly relevant in today's global investment landscape.

The Red Thread, a flagship thought-leadership paper by UBS Asset Management, explores the most recent edition of diversification. This edition is a valuable resource for investors looking to optimize their portfolios.

Many investors assume that diversification is a one-size-fits-all solution, but the truth is more complex. The Red Thread highlights the nuances of diversification and its various forms.

Investors can benefit from exploring different types of diversification, such as asset allocation and geographic diversification. By doing so, they can create more resilient portfolios.

The Red Thread emphasizes the importance of understanding the underlying assumptions of diversification. This includes recognizing the limitations of historical data and the impact of changing market conditions.

Investors should be aware that diversification is not a guarantee against losses. However, it can help reduce risk and increase potential returns over the long term.

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The US economic outlook is looking strong, with GDP growth projected to reach 2.1% in 2023, up from 1.9% in 2022.

This growth is driven in part by a continued expansion in the services sector, which accounts for over 80% of the US economy.

The US is also seeing a significant increase in consumer spending, with Americans expected to spend over $4 trillion in 2023.

Despite these positives, there are some potential headwinds on the horizon, including a projected slowdown in government spending and a rise in interest rates.

According to the article, the US is likely to see a modest increase in inflation, with the Consumer Price Index (CPI) projected to rise by 2.5% in 2023.

The US stock market is also expected to perform well, with the S&P 500 index projected to reach 4,200 by the end of 2023.

Overall, the US economic outlook is looking bright, with many experts predicting a continued period of growth and expansion.

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The Credit Suisse Global Investment Returns Yearbook is a valuable resource for investors, with a long-term perspective that spans 109 years of data for 17 countries representing 90% of world stock market value.

Each year, the yearbook provides an in-depth look at global markets, offering a wealth of data and commentary that can help investors make informed decisions. In 2009, the yearbook noted that the last decade had been the "lost decade", with the MSCI World index losing a third of its value in real terms.

The yearbook is produced in collaboration with the Credit Suisse Research Institute, and its authors, Elroy Dimson, Paul Marsh, and Mike Staunton, are experts in their field. Their research is thorough and insightful, providing a unique perspective on the global investment landscape.

Here are some key findings from the yearbook:

This data highlights the importance of taking a long-term view when investing in equities. As the yearbook notes, "A week may be a long time in politics, but even a decade is too short to judge stock returns."

The Credit Suisse 2021 Report is out, and it's a doozy. The summary edition of the Global Investment Returns Yearbook 2021 is now available, and it focuses on emerging markets as a special topic.

This year's report adds nine new emerging markets to its dataset, giving investors a more comprehensive view of the global market. The report is produced in collaboration with the Credit Suisse Research Institute by Elroy Dimson, Paul Marsh, and Mike Staunton.

The report is a treasure trove of data and commentary, with a long-term perspective that's essential for understanding equity returns. With 109 years of data for 17 countries, representing 90% of world stock market value, investors can get a sense of the ups and downs of the market.

Here are the key emerging markets added to the report:

These markets offer a glimpse into the growth potential of emerging economies, and the report provides valuable insights for investors looking to tap into this growth.

Credit Suisse 2022 was a challenging year for the bank, with a significant decline in its stock price.

The bank's stock price plummeted by 24% in 2022, wiping out $10 billion in market value.

Credit Suisse's net profit for 2022 was $2.1 billion, a significant drop from the $4.5 billion it reported in 2021.

The bank's asset quality issues were a major concern, with a significant increase in loan losses and credit impairments.

Credit Suisse's CEO, Ulrich Koerner, took over in 2022 and implemented various cost-cutting measures to improve the bank's profitability.

The bank's efforts to restructure and refocus its business were hindered by a series of high-profile scandals and controversies.

Credit Suisse's asset management business was a bright spot in an otherwise difficult year, with a strong performance in 2022.

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