I wrote a blog earlier this year suggesting that other alternative asset classes for investment should be considered apart from just the traditional assets of shares, bonds, property and cash.  As a follow up I thought it would be a good idea to track how various asset classes have performed this calendar year so far up until second week of September 2024.

 

I found this chart particularly interesting from Ben Carlson’s blog A Wealth of Common Sense on 12 September this year.

 

Past performance is not a reliable indicator of future results.

 

Yet again Bitcoin is the best performing asset class from this list with a return of 29.78%.

 

Let me make this clear.  This isn’t an outright recommendation to invest in Bitcoin at all. It’s just an observation that’s all. In the blog I wrote in February I did suggest that Bitcoin could represent up to 5% of an investment portfolio for a high risk investor because it is so volatile and risky. It is not an investment for the faint-hearted. Nonetheless, the long term returns continue to be outstanding.

 

 

Of course, none of us know what the future holds.  Bitcoin is very much a “marmite” investment. You either love it or hate it. None of us know what the future holds for it. However, a number of large US investment funds have launched Bitcoin ETFs in the last 12 months so it seems likely that this asset class will eventually become mainstream.

 

Interestingly gold has outperformed the S&P 500 index, the index of the 500 largest US companies by market capitalisation, this century to date and this calendar year to date with a return of 20.64% so far this year but that is from an investment in gold mining shares.

 

The S&P 500 ETF has returned 15.14% and the Invesco QQQ ETF (US technology shares quoted on NASDAQ) has achieved a return of 10.49% this year to date.

 

So although this time period is a short one of just eight and a half months it is interesting to know that Bitcoin, gold and equities have been the top performers. These were the top three performing asset classes over the previous 10 years at the time of writing my above-mentioned blog in early February this year.  It’s certainly food for thought. You know it makes sense.*

 

*RISK WARNING

The Financial Conduct Authority does not regulate most crypto assets/services. The value of your investments can go down as well as up so you could get back less than you invested. Past performance is not a reliable indicator of future performance. Bitcoin is a crypto asset. Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you are unlikely to be protected if something goes wrong. The information contained within this blog is for guidance only and does not constitute legal or financial advice which should be sought before taking any action or inaction. All information is based on our current understanding of taxation, legislation, regulations and case law in the current tax year. Any levels and bases of relief from taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. The Financial Conduct Authority does not regulate tax planning, estate planning, powers of attorney or trusts.  This blog is based on my own observations and opinions.