Even at record highs, the stock markets are your best long-term bet. An investment in stocks, unlike in gold or real estate, is an investment in the creative potential of people
Based on the historical record of over 200 years, how much can you expect to have at the end of 40 years, after adjusting for the loss in value due to inflation?
The answers are surprising. Over the 40-year period you have invested a total of £100,000. The expected value of your £100,000 investment at the end of 40 years is:
(i) Gold: £100,000
(ii) Property: £240,000
(iii) The stock market: £500,000
All of these figures are adjusted so that they are not distorted by inflation.