Managing Your Money : SMALL CHANGE : Stocks and Stamps Beat Cropland

Stocks and fine paintings were the most effective way to beat inflation over the past 20 years. Farmers were among the big losers. Compound annual rates of return for various asset classes are shown below. Stocks: 11.5% Old Master: 11.1% Diamonds: 9.9% Stamps: 9.6% Chinese Ceramics: 9.6% Bonds: 9.3% Gold: 9.2% 3-Month Treasury Bills: 8.6% Oil: 8.5% Housing: 7.1% Consumer Price Index: 6.3% U.S. Farmland: 5.9% Silver: 4.5% Foreign Exchange: 4.0%

Source: Salmon Bros. Annual Asset Survey