“Almost everyone reading this has a reason to invest for the long term — whether that’s building a pension, planning for early retirement, funding a child’s education, helping them buy a property, or simply setting something aside for a rainy day. At a professional level, understanding how financial assets behave over long horizons is fundamental to strategic asset allocation, longterm investing, and economic forecasting. This study examines how asset classes have performed across a wide range of macroeconomic, policy, and valuation environments. Drawing on data that in some cases stretches back to the 18th century, we analyse both nominal and real returns to understand how different assets have behaved under varying conditions. We explore correlations with key drivers such as real and nominal GDP growth, inflation, interest rates, bond yields, debt and deficit levels, and more — with the goal of helping investors tilt the odds in their favour. Ultimately, this report aims to offer insights that could help you retire a few years earlier, grow a larger pension pot, give your children a better start, or simply outperform your peers over the course of your career.”
Morten W. Langer
