In this graphic, we show asset class returns across U.S. equities, bonds, real estate, gold and cash since 1970.
Assets at the bottom of Exter’s pyramid of financial risk are typically the most liquid during periods of market stress.
Which asset classes outperformed during the last three periods of interest rate hikes? We look at historical risk and return in this chart.
Global equities had a high median real return—a return net of inflation—while energy equities were a poor hedge against inflation in recent years.
To minimize volatility, it's important to consider asset class correlation. Learn how correlation has changed over time depending on macroeconomic events.
