I have a Telegram group member James who asked if I have longer tenure returns data for this 5 year chart:
I am not going to do for all but here are the total and annualized 20 and 25 year returns for indexes representative of much of these indexes:
I presented both the cumulative returns and annualized return.
If you look at this data, it kind of tell you that a basket of diversified equities is like a 20-25-year duration pseudo fixed income security.
You are not sure what kind of returns you gonna get. The weakest 25 year return here is 201% or 5.7%.
$1 mil grow to $4 mil at a 25-year 5.7% p.a. compounded rate.
You also see which look-back window you use is important. If it is 20 year, Large cap growth is the best and International large & mid cap blend and value did the worse.
But if you use 25 year, the best is US small cap and US small cap value. The worse is International Large & mid cap growth and mid cap & small cap growth.
Hope the data is useful.
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