Gold maintains purchasing power. Why? People have used it for thousands of years because it is scarce (inflation from production is positive but low, reserves get depleted). That is why it is called a store of value. Especially, in times of crisis such as war.
Longer dated currency has positive returns but these are relatively low. Lending in the real economy is required for businesses to grow but debt capital is just one form of financing. Stocks are a clear winner.
Why? Productive businesses create value for consumers (and businesses) through their products and services offered in the real economy. If they create value for others, they profit themselves. And their shareholders. In short: own stocks. These are productive businesses. For the above reasons this asset class outperforms historically. Take Warren Buffet for example. What does he own?
Use this to your advantage. Watch what the best investors in the world are DOING, not what they are saying.
Other great asset classes are missing in the figure above. Wonder what they are? Find out in our free investing guide.
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