In Siegel's book "Long-term Investment in the Stock Market", there is a view that in the long run, among the investment varieties such as bonds, gold, dollars and equity, only equity investment can resist inflation. It can be seen that equity assets are the biggest source of income in asset allocation, and equity is one of the essential assets if the portfolio wants to maintain and increase its value for a long time and realize reasonable income.
Characteristics of equity assets
1. Equity assets have high long-term returns. Taking China's main market index CSI 300 and China's mid-market index CSI 500 as examples, the CSI 300 index was established from June 2002 to August 3 1 and 20 18, with a compound annualized rate of return of 6.27%. Since the establishment of CSI 500 in June 2005 at 5438+0, as of August 3 1 20 18, the compound annualized income is 13.02%. On the whole, the average annualized rate of return on equity assets is around 10%, which is at a high level.
2. Volatility is the most important external feature of equity assets. The stock index fluctuates up and down, especially in a local time period.
3. In the long run, the return curve of stock index generally climbs upward. The upward movement of the stock index comes from the value creation of the enterprise corresponding to the stock, and its essence is the growth of enterprise profits. During this period, the price kept fluctuating, reflecting the change of investors' valuation or investment sentiment.