1-11 Recent Performance of Investments

For those just beginning, a good point of reference is the recent performance of the common investments described above. How have they done over the last five years? These charts illustrate their performance over the same time period. When looking at the charts, keep in mind what you read earlier in the lesson and what you’ve heard about the economy in the news.

For example, regarding real estate, you’ll see the price of homes has fallen from 2006 to 2009, in part owing to a bad economy. As we stated: In normal or expanding economies, real estate investing can be quite lucrative and relatively safe. In down markets, both the potential rewards decline and the possible risks escalate quickly.

chapter1-11a chapter1-11b chapter1-11c chapter1-11d chapter1-11e chapter1-11f

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