Did the gold provide a higher yield than the oil in the last 10 years? Did the oil beat the stock index at that time? What was the return of investment in the Euro in the last 10 years?

In our “60 seconds on…” review we will cover different indexes in the last 10 years and will try figure out which index provided the highest yield of the past decade, (November 2001-November 2011).

So let’s begin…

The first index we examined was the S&P 500. From November 2001 till today, the S&P 500 rose by 11%! You can’t blame it with two crises along the way, but these are the numbers!

S&P 500

The Gold at that same period rose to the record yield of 542%, yes, compared to the 11% of the S&P 500. As you can see in the graph below, the gold continuously increased during the period while the crises along the way strengthened the asset’s increase because of the “Flight to Quality” phenomenon. At its peak in September 2011, the gold price of $1900 an ounce.

 

 

 

Gold

To check the oil’s performance in the last ten years we used a generic measure of the oil prices and a graph shows a daily and monthly sample. The oil in the last decade increased by 380%! It’s peak, in June 2008, was at $140 per barrel.

Crude Oil

 

Investing in the Euro against the Dollar between 2001-2011 resulted in a yield of 54% for the Euro. From the rate of 0.8796 to a current rate of 1.375.

EUR – USD

The following index we chose to present is the merchandise index. There are several indexes of merchandise and we chose the CRY index. The CRY commodities index rose during this period 111%. At the peak of the crises the index fell by 57%.

CRY

In conclusion, we are examining the world stock index for the advanced economies emerging markets. If you think the following index’s results are better than the S&P 500 than you better think again… The world stock index for the period rose by a total of 29% (approximately), although higher than the 11% rise but still a lower yield relative to other indexes.

So next time you choose to invest, don’t take anything for granted…

World Stock Index – including advanced and emerging markets

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