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   Investment Thoughts - Chart Gallery

War and Peace: a tale of two economies
Nominal and real return on assets classes for Japan and Switzerland over the past 100 years.

 

In these times of widespread gloom and doom, it makes sense to take a step back in history and see how equity and bonds did perform under extreme conditions. So we look at Switzerland, which has enjoyed one of the most solid economy over the past hundred years, and Japan, which has experienced extreme geopolitical dislocations.

 

Thes two charts show the nominal and real return on assets classes for Japan and Switzerland, from 1900 to 2000.

 

It is interesting to compare the impact of  inflation and currency dynamics on domestic bonds and equity. Although Japan recovered spectacularly after WW2, many fortunes, savings and hopes were wiped out in the process.

 

On the other hand, Switzerland's political and economic stability provided a fertile ground for steady asset class returns, currency strength and controlled inflation.

 

Click on the charts for a larger view.

 

 Nominal and Real Returns on Swiss Asset Classes: 1900-2000

  Nominal and Real Returns on Japanese Asset Classes: 1900 - 2000

 

 

 

 

 

Investments Office-Ronald Weber

07.08.2012


 

Themes

 

Asia

Bonds

Bubbles and Crashes

Business Cycles
Central Banks

China

Commodities
Contrarian

Corporates

Creative Destruction
Credit Crunch

Currencies

Current Account

Deflation
Depression 

Equity
Europe
Financial Crisis
Fiscal Policy

Germany

Gloom and Doom
Gold

Government Debt

Historical Patterns

Household Debt
Inflation

Interest Rates

Japan

Market Timing

Misperceptions

Monetary Policy
Oil
Panics
Permabears
PIIGS
Predictions

Productivity
Real Estate

Seasonality

Sovereign Bonds
Systemic Risk

Switzerland

Tail Risk

Technology

Tipping Point
Trade Balance

U.S.A.
Uncertainty

Valuations

Yield