An educational poster of five common categories of investment: stocks, bonds, real estate, gold, and cash. Form, function, and risk laid out side by side.
Fractional ownership of public companies. Highest long-run historical average on this poster, paired with the largest swings up and down. Returns come from price moves and dividends. Very liquid, very volatile.
Loans to a government or a company that pay regular interest. Lower volatility, lower average. Price moves inversely to interest rates. Credit quality differs by issuer.
A tangible store of value. No income. Often held as an inflation hedge or diversifier.
Direct property or indirect REIT exposure. Rental income plus potential appreciation. Direct ownership is illiquid and high-ticket. REITs trade like stocks and offer simpler access.
Bank deposits, money market funds, short-term Treasuries. Lowest nominal volatility on the poster. Yield varies with central bank policy. Real purchasing power can erode if inflation outpaces the rate.
| Property | Stocks | Bonds | Gold | R.E. | Cash |
|---|---|---|---|---|---|
| Hist. avg | ~10% | ~5% | ~3-5% | ~8% | ~4% |
| Volatility | High | Low-Mid | Mid-High | Mid | V.Low |
| Liquidity | High | High | High (ETF) | Low (direct) | Highest |
| Income | Dividends | Coupon | None | Rent | Interest |
| Inflation | Mixed | Hurt | Often helps | Often helps | Erodes real |
| Min commit. | V.Low | Low | Low (ETF) | High (direct) | None |
Every category on this poster can lose value. Different categories carry different kinds of risk: volatility, credit, illiquidity, inflation, and geopolitical. Risk tolerance and time horizon are personal.
No category is universally best. Most portfolios are blends weighted by goal, horizon, and tolerance. The figures shown here are starting points for study, not formulas.
Before any decisions about your own situation, consult a licensed financial advisor. This poster is not personalized financial, tax, or investment advice.