How much you would have made on popular investments in 2024
How stocks, crypto, savings and the proverbial cash under the mattress fared last year.
Another year has come and gone, but amidst an ongoing cost of living crisis and uncertainty over the global economy, 2024 proved to be a great year for most asset classes.
While hindsight is 20/20, we thought we'd take a look at which of the major investments performed the best last year, and how much you could have made had you invested in them 12 months ago.
Stocks
After a volatile few years, the stock market managed another bumper year in 2024, with the Australian and US stocks markets recording double digit gains.
The leading US stock indices, the S&P 500 and Nasdaq-100 finished the year up 23.31% and 25.90% respectively, while closer to home, the ASX 200 managed a return of 11.20%.
This means $10,000 invested at the start of 2024 in the best-performing of these indices, the Nasdaq-100, would have been worth $12,590 by the end of the year, for a profit of $2,590.
In terms of individual stocks, Nvidia was the standout performer amongst the big stocks, returning 194.23% in 2024, making it the 3rd best-performing stock on the S&P 500.
$10,000 invested in Nvidia (NVDA) at the start of 2024 would have been worth $29,423 by the end of the year, a gain of $19,423.
Crypto
2024 was also a notable year for cryptocurrency, with Bitcoin up 119.45% on the back of a lot of positive news for the crypto space.
This means a $10,000 investment in Bitcoin would have been worth $21,945 by year's end, a profit of $11,945.
It was more of a mixed bag for other leading cryptocurrencies, but XRP was the other notable performer amongst the largest cryptocurrencies.
$10,000 in XRP at the start of 2024 would have been worth $33,577 12 months later.
Savings
With interest rates rising over the last few years, the humble savings account returned as an attractive investment option after years of extremely low returns.
If we take the highest average interest rate for 2024 (5.5% p.a.), $10,000 left in a high interest saving account would have been worth $105,500 by the end of the year, a gain of $5,500.
Cash under the mattress
If you had decided to leave your money in a regular bank account earning no interest (or literally under your mattress), you'd actually have lost money this year in real terms.
This is because inflation reduces the value of money over time. The latest official inflation figures have inflation at 2.8% year-on-year.
This means $10,000 left under the proverbial mattress would actually be worth $9,720 in real terms by the end of 2024.
It's worth keeping in mind that the figures above are exclusive of inflation, so your real returns would actually be 2.8%, but it's useful for illustrating the importance of investing, especially in times of high inflation.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.