Top 9 Best Performing Stock Markets Since 1900

Today we have brought an interesting and edifying article from Insider Monkey, the top 9 best performing stock markets since 1900. As people consider investing a long-time game, now we are discussing long-term investing. Let’s see an arresting example: how much money would you have now, if your great-great grandfather had invested $1 in the US stock market in 1900? Well, as the US market has had 6.5 real annualized returns since then, you would have had $3,806 at the end of 2019.

Economy and business have changed a lot since the 1900s. In those times, 63% of the US total stock market value came from railroads. In the 21th century it’s an inessential part of the S&P 500 Index.

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Equities have far outperformed other assets

We could see so many things during the past 120 years, two World Wars, a Cold War, several econmic crises, revolutions and many other things. This year has been the worst among the recent years, because of the COVID-19 pandemic. Industries were locked down, smaller or bigger companies went bankcrupt, and even now we don’t know how long we will feel its effects on the world economy and in our lives. The Yearbook shows the historical risks and returns from investing in bonds, stocks, currencies and cash in more than 2 countries since the 1900s.

According to Insider Monkey’s research, equities were worthy than bonds in the long run. In the last 119 years (until 2019) stock markets showed a real rate of 5.2%, while bonds brought only 2% in the same period. Remarkably, Japan had the second best performing stock market in the world between 1900 and 1939. But unsurprisingly Japanaese equity markets lost almost the whole real value after the Second World War.
Notably, Australia has been a favorite target for investors, because of the fair regualtions and low corruption. The COVID-19 pandemic didn’t cause any decline in Australian equity markets this year. Nevertheless, all this doesn’t guarantee anything about equity markets. It’s true that it has done well in the last 120 years, but nobody can predict what will happen in the future. If you are interested in more facts about the top 9 best performing stock markets since 1900, check out Insider Monkey’s article.

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