Credit Suisse Research Institute explores over a century of global market returns, with a particular focus on emerging markets and their evolving role in portfolios. The data challenges assumptions about diversification, showing that while emerging markets promise growth, realized returns and risks have been far less consistent than many investors expect.
Global Investment Returns Yearbook 2021 Summary Edition
Credit Suisse
Elroy Dimson
Research
76 Pages
Key Takeaways
Global Equity Returns: Global equities delivered 5.3% real annual returns from 1900–2020, versus 2.1% for bonds and 0.8% for bills.
Emerging Market Gap: Emerging markets underperformed developed markets by roughly 2–3% annually over long periods despite higher volatility and growth expectations.
Diversification Limits: Correlations between global markets have risen toward 0.8 in recent decades, reducing diversification benefits compared to earlier periods.
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