Investor Derby: Gold Won First Quarter, Stocks Win Long Duration

89
Source:   —  April 01, 2016, at 9:29 PM

Economic uncertainty around the world and a brutal start to the year for stocks helped send the price of gold surging to its best quarter in thirtieth years.

Another quarter, another lesson in long-term investing.

Economic uncertainty around the world and a brutal start to the year for stocks helped send the price of gold surging to its best quarter in thirtieth years. But an analysis of ten common investments by the Associated Press shows that regular investors who keep a steady quantity of money every mo into an account love a four hundred one(k) would've been distant better off in stocks or bonds.

In just the first three months of two thousand sixteen the biggest gold exchange traded fund soared sixteen percent. Gold'south track record over the latest decade is distant from glittering, though. Latest quarter'south leap allowed the gold fund to slice only a bit into the long string of losses it's turned in for years. Over the latest five years, an investor who'd faithfully keep in $500 a mo into that gold fund lost money on the investment.

Investors who did the same over the last ten years are only slightly in the black. And they've only about two-thirds what they'd if they'd simply invested in a wide U. S. stock market fund.

The AP analysis, using data from FactSet, shows that the top-performer over the past ten years for regular investors — those who invest a piece of their income every mo and keep for the long term — has been U. S. stocks. That period includes the all Grand Recession, which caused stocks to lose more than half their cost and terrified retirement savers.

Someone who keep in $500 every mo into a wide U. S. stock fund over the latest decade would've 1.181 today, a gain of $41.181 on the $60.000 they invested over that time.

A tiny subset of the U. S. stock market, real-estate investment trusts, has performed even better, a astonishment considering the real-estate bubble is what got the economy into its mess. But REITs rebounded strongly following the financial crisis because they tend to pay relatively huge dividends, and investors were hungry for income in a low-interest rate world.

Someone who'd the patience and wherewithal to hold putting $500 monthly into a REIT fund over the latest decade would've 7.918 today on that $60.000 investment.

The weakest performers over the latest decade have been foreign stock funds, particularly those that focus on China, Brazil and other developing economies. These emerging-market stock funds were some of the hottest investments in the mid-2000s, but they've struggled mightily over the latest year amid slowing economic growth. Periodic investments in an index fund focused on emerging markets would've lost money over the latest year and five years, and over ten years would've generated the smallest gain of the ten investments studied by AP.

Online: http://interactives. ap. org/two thousand sixteen/investments/

READ ALSO
Where Americans Found Jobs in March

Where Americans Found Jobs in March

The three sectors combined accounted for nearly two-thirds of total U. S. work gains in March. Retailers added about 48.000 jobs, thanks to openings at common merchandise stores, health and personal care outlets and auto dealerships.

78
US Stocks Obtain a Boost From Solid March Jobs Report

US Stocks Obtain a Boost From Solid March Jobs Report

S. stocks are edging higher in Friday afternoon trading. Consumer companies are rising after the government said work growth continued at a powerful clip in March.

88
FDA: Tiny Risk of Implant Malfunction From Medical Scans

FDA: Tiny Risk of Implant Malfunction From Medical Scans

The Food and Drug Administration said Friday the risk of serious health problems due to medical scans is "extremely low" and can be further reduced by using lower doses of X-ray radiation.

93
US Rig Count Drops fourteen This Week to four hundred fifty, Another All-Time Low

US Rig Count Drops fourteen This Week to four hundred fifty, Another All-Time Low

S. dropped fourteen this week to four hundred fifty, another all-time low amid continuing energy industry price woes. A year ago, 1.028 rigs were active. Houston oilfield services company Baker Hughes Inc.

112