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.