Long-Term Investment Performance

Measuring Long-Term Market Performance

Basic statistical analysis of historical asset returns can reveal the growth rate of wealth invested in an asset class or portfolio and the riskiness or volatility of asset classes.

Compound Annual Return

The compound annual return is measured by geometric mean. It measures the average performance of an asset or portfolio over a given time period. In other words, it is a backward-looking statistic that determines the change in wealth over more than one period.

Arithmetic Mean

The arithmetic mean is just the simple average of returns. This measure of average better represents typical performance over single periods.

Risk

Risk is measured by standard deviation. It measures the fluctuation of returns around the arithmetic average return of the investment. The higher the standard deviation, the greater the variability (and thus risk) of the investment returns.

Types of Asset Classes

Stocks
  • Large Stocks
  • Small Stocks
  • International Stocks
 
Bonds
  • Government Bonds
  • Corporate Bonds
  • Municipal Bonds
  • High-yield Bonds
  • International Bonds
Cash Equivalents
  • Money Market Funds
  • Treasury Bills
  • Certificates of Deposit
 
Hard Assets
  • Real Estate
  • Commodities
  • Gold
Long Term Investment Performance
Long Term Investment Performance
Long Term Investment Performance
Long Term Investment Performance
Long Term Investment Performance

In 2002, Equitas Capital Advisors, LLC was established as a unique company that blends the resources of a large global corporation with the flexibility of a small boutique firm. The registered service mark of Equitas Capital Advisors is Engineering Financial Solutions® and the purpose of Equitas is to design, build, and deliver investment solutions to meet the goals and objectives of our investors. Equitas Capital Advisors, LLC located in New Orleans, has over 200 years of combined investment management consulting experience providing professional investment management services to investors such as foundations, endowments, insurance companies, oil companies, universities, corporate retirement plans, and high net worth family offices.

Disclosures and Disclaimers:
Above information is for illustrative purposes only and has been obtained from reliable sources but no guarantee is made with regard to accuracy or completeness. It is not an offer to sell or solicitation to buy any security. The specific securities used are for illustrative purposes only and not a recommendation or solicitation to purchase or sell any individual security.

Equitas Capital Advisors, LLC is registered as an investment advisor with the U.S. Securities and Exchange Commission (“SEC”) and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.

Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author on the date of publication and are subject to change. This publication does not involve the rendering of personalized investment advice.

Charts and references to returns do not represent the performance achieved by Equitas Capital Advisors, LLC, or any of its clients.

Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.

All investment strategies have the potential for profit or loss. There can be no assurances that an investor’s portfolio will match or outperform any particular benchmark. Past performance does not guarantee future investment success.