It’s quite strange that owning all the world’s (public) productive assets have only beaten gold, a largely useless shiny metal, by 1% per year over the last 56 years.
Even if you focus on rolling metrics to(this is 5 year rolling returns).:
there are lots of long stretches of gold beating world equities, especially in recent times. There are people with the suspicion (myself included) that there hasn’t been much material growth in the world over the last 40 or so years compared to before. And that since growth is slowing down, this issue is worse if you select more recent points in time, with gold handily beating equities if you start 25 years ago.
Has GDP essentially been goodharted by central banks in recent times? Wonder if there’s more research into this.
It’s quite strange that owning all the world’s (public) productive assets have only beaten gold, a largely useless shiny metal, by 1% per year over the last 56 years.
Even if you focus on rolling metrics to(this is 5 year rolling returns).:
there are lots of long stretches of gold beating world equities, especially in recent times. There are people with the suspicion (myself included) that there hasn’t been much material growth in the world over the last 40 or so years compared to before. And that since growth is slowing down, this issue is worse if you select more recent points in time, with gold handily beating equities if you start 25 years ago.
Has GDP essentially been goodharted by central banks in recent times? Wonder if there’s more research into this.
Gold was currency, and is still used as a hedge against fiat currency.
I assume most of that growth occurred in China.
What can central banks do to affect GDP growth?
Not just central banks but the U.S. going off the gold standard too then fiddling with bond yields to cover up ensuing inflation maybe?
Global GDP growth over the same period was around 3 percent.
The question is how did equities outperform gdp growth.
I think that this has to do with changes in asset prices in general.