By Scott Ronalds
The Investor Education Fund (a non-profit organization funded by the Ontario Securities Commission) has a cool interactive chart on their website that shows the historical returns – from 1935 to 2012 – of various stock markets, bonds and T-Bills, along with inflation and the prices of gold, oil and housing.
The chart also has historical data on interest rates and exchange rates (between the Canadian and U.S. dollar), along with features that illustrate the best and worst 5-year returns for various asset classes, and the dangers of market timing.
Investors today are slammed with short-term economic news, short-range market predictions, and an ever-increasing array of products trying to capitalize on the latest trend. Stepping back to look at the long-term big picture helps put things in perspective. Give it a try.