Meet the Historically Boring Asset That Has Risen 610% Since 2000 and Crushed the S&P 500 Index
From Yahoo Finance: 2025-04-25 10:00:00
Stocks are traditionally seen as more aggressive investments, but with longer life expectancies and higher costs of living, younger investors are encouraged to be more aggressive early on. A traditional portfolio allocates 60% to equities and 40% to bonds.
Despite expectations, an exchange-traded fund has surged 610% since 2000, outperforming the S&P 500. SPDR Gold Shares have also seen significant gains, with gold up 26% this year, 43% in the last 12 months, and 88% over the past five years.
The U.S. has accumulated over $36 trillion in debt, leading to concerns among bondholders. Central banks are buying less U.S. Treasury bonds and shifting to gold. The Federal Reserve is conducting quantitative tightening, and longer-term Treasury yields are rising amid economic stress.
Gold’s strong performance and hedge against inflation make it an attractive asset. While stocks historically outperform gold, some investors advocate for a diversified portfolio with exposure to gold, like SPDR Gold Shares. Central banks are buying gold, and the private sector is holding more Treasuries.
Consider diversifying your portfolio with exposure to gold, but don’t overlook the potential of stocks. The Motley Fool Stock Advisor identified the 10 best stocks to buy now, with past recommendations like Netflix and Nvidia yielding significant returns. Don’t miss out on potential market-crushing opportunities.
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