Visual explanations of investing and market performance can do a lot to help explain concepts like risk and reward, as well as some of the complex processes that help make markets work. This makes makes it all the more surprising that there aren’t more great visual representations out there to explain this data-rich subject. There are some, though: here’s a roundup of ten of the most interesting investing infographics we’ve found.
Investment Return Infographics
1. “The Big Picture” from InvestmentsIllustrated.com
We’ve featured this one on the blog before. It’s hard to beat one chart that you summarizes the ups and downs in the price of every major investment asset class since 1925. This chart also has some really nice summary graphics about the dangers of trying to time the market.
2. Long-Term Real Investing Returns via The New York Times
This chart comes from the New York Time Business section, and shows investment returns after inflation. It’s interesting to see in one chart how your investments would have done if you held it for 10,20, and 30 years starting pretty much at any time since 1925 all represented in one chart. It’s not easy to draw practical conclusions from this chart really, but it does highlight two things in my mind: 1) How the stock market returns even over 10 years can vary pretty dramatically from one ten year period to the next. and 2) that inflation can be a real drag on your investment return. Also, according to this chart the median return over any 20 year period is 4.1% after adjusting for inflation.
3. Stock Market Rebound By Country in 2010 via Vizworld.com
In 2008 and 2009 it felt like the investment world was falling apart. 2010 arrived and markets rebounded with a bang. This chart is a great summary of market returns by country in 2010. Russia, Brazil and Turkey won the biggest jump prize, each with a gain of more than 100% during the year.
Investing Explained
4. “What is a Stock” from Mint.com
Few works do simplicity better than mint. This first graphic explains exactly what a stock is and why you would want to by one.
5. “Stock vs. Stuff” from Mint.com
We like this chart because it takes the idea of investing your money and spending and makes it really concrete. Love Ford cars? Maybe you should invest in them instead of buying that F-150?
Investing Psychology
6. “Psychology of a Market Cycle” by WallStCheatSheet.com
Often times in investing its easy to get lost in the line charts, numbers, and red and green indicators. We forget that in reality the most important thing when it comes to investing is really you, the investor, and how your emotions can lead you to make decisions that aren’t always the best for your finances. That’s why I like this chart, showing a typical stock market boom and bust cycle annotated with the feelings that typically go along with it. It starts off with things like hope, belief, and thrill, and ends with denial, panic and anger. Who can’t relate?
Alternative Investments
At GoalMine we tend to only focus on ‘traditional’ investment types like stocks and bonds. But it’s good to remember that really there are lots of things that you can think of as investing. These next two infographics highlight some of the other ways you can invest, starting with a look at high-flying gold investments to exceptionally non-traditional investments like wine and even movie posters. Who knew that a 1933 poster of King Kong would be worth $345,000 today?
7. “A Golden Investment” from Adaptu.com
8. “Alternative Investments” from OnlyInfographic.com
Why We Should All Be Investing
I’ll admit that these next two graphics aren’t about investing per se. But they do highlight why it is that we all need to be investing and building our wealth for our financial future.
9. “How Much Does It Really Cost to Raise a Kid?” from VisualEconomics.com
10. “Do You Look Like the Typical American Family?” from PfHub.com
