What Is the Average Annualized Return Across Different Asset Classes?

Residential real estate and equities deliver comparable annual returns of around 7%.

In most countries, the real yield on safe assets such as government bonds sits between 1% and 3%.

For most of the time, the return on capital in most countries has exceeded the pace of economic growth, with long-term asset returns running roughly twice the GDP growth rate (compared with the approximate 3%–5% GDP growth). As a result, wealth inequality continues to widen.

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