Dear Clients, Friends and Partners of Das Family Office,

After a rewarding 2023, global financial markets carried their momentum into 2024. Equity markets, in
particular, surprised with another year of double-digit gains, as the Nasdaq 100 and S&P 500 each
advanced more than 25%—despite concerns that valuations of U.S. large-cap stocks had already
reached extreme levels at the end of 2023.

Bond markets continued their recovery from the 2022 “Big Bond Reset,” though long-duration
government bonds in the U.S. and Europe still recorded losses. This segment now seems to operate
in isolation, as government debt levels in developed markets have reached the point where “the long
bond” no longer provides reliable portfolio insurance.

It is against this backdrop that I am pleased to present the seventh edition of the DFO Financial
Yearbook, which compiles long-term risk and return data across a wide range of asset classes.
Beyond individual asset class profiles, the Yearbook includes stress tests and timeless investment
principles to support long-term investors.

For the first time, we have added current valuations of major asset classes relative to their historical
returns, as well as breakeven inflation rates. Our new “valuation traffic light” offers a practical guide to
whether now may be an attractive time to invest in a given asset class. In addition, we highlight the
growing role of global private markets, which private banks are increasingly promoting to their clients.
However, investors should note that access typically requires “feeder vehicles” with costs ranging from
2–5% p.a., which can significantly erode returns—particularly when compared with the very low cost of
index funds and ETFs.

The purpose of the Yearbook is to provide clear, realistic expectations for long-term returns in global
stock and bond markets. Such information is rarely shared by private banks or their relationship
managers, whose short-term revenue goals often conflict with the long-term success of their clients. A
fee-only advisor may therefore be a more effective partner for investors seeking unbiased guidance.

I hope the 2024 DFO Financial Yearbook provides you with the insights and confidence to establish a
robust long-term strategy—and, most importantly, to stick with it. As always, we remain at your
disposal should you seek an investment partner or sounding board.

 

Yours truly,

Mario Becker

Founder & CEO of Das Family Office

 

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