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9.3 Types of Investments & Rate of Return
HOME.
Listed below are the various types of investment and their characteristics.
Section 9.4 shows the Return that be expected on some of these investments
Rate of Return on Various Investments
Below are average annual returns on:
Stocks: 12.8%
International stocks: 4.9%
Bonds: 1.4%
Gold: 3.4%
Real estate: 4.8%
1-year CDs: 0.42%
Post on reddit.com on Sep. 25, 2022
"When buying or selling stocks, the probability of winning is 50%, but when selling options, the probability
is 80%. for my skills and temperament, the best way to make money is selling options"
Over the past 10 years, TQQQ had an annualized return of 35.07% outperforming S&P500 which had
a 10.02% annual return.
High rate of return is usually associated with high risk. However the risk can be minimized by one's
allocation of assets by having more CASH in the portfolio, thereby reducing volatility in the account.
Volatility is not risk, but an opportunity for investors to make a profit in a shorter period of time.
