Stock Market Emerges as Top Performer of the Year, Surpassing Inflation with a 30% Return

BIST 100 Index Leads Investment Gains in May and Across Five Months, Defying Inflation Trends

The stock market has been the most profitable investment of the year, delivering a remarkable 30% return and outperforming inflation. In May, the highest real return was achieved by the BIST 100 index, which saw a 5.44% increase when adjusted for inflation. Over the first five months of the year, the BIST 100 index provided investors with a 29.81% real return, according to data from the Turkish Statistical Institute.

In May, the BIST 100 index posted a 6.89% real return when adjusted by the domestic producer price index (YI-UFE) and a 5.44% return when adjusted by the consumer price index (TUFE). Other investment vehicles lagged behind, with gross deposit interest yielding a mere 1.19% and government bonds offering a 0.38% real return when adjusted by YI-UFE. Conversely, investments in euros, dollars, and gold bullion saw losses of 1.44%, 2.25%, and 3.72%, respectively.

When adjusted by TUFE, gross deposit interest returned 0.19%, government bonds 0.99%, while euros, dollars, and gold bullion resulted in losses of 2.79%, 3.58%, and 5.03%, respectively.

Gold bullion stood out over a three-month period, delivering the highest real return of 8.75% when adjusted by YI-UFE and 7.84% when adjusted by TUFE. In contrast, government bonds emerged as the least profitable, with losses of 5.42% and 6.21% for the same periods, respectively.

Over a six-month period, the BIST 100 index remained the top performer, offering real returns of 11.70% adjusted by YI-UFE and 5.43% by TUFE. Meanwhile, the dollar was the worst performer, with losses of 5.65% and 10.95%, respectively.

On an annual basis, the BIST 100 index delivered the highest real return, with 44.44% when adjusted by YI-UFE and 29.81% by TUFE. Gold bullion provided a 14.76% return adjusted by Yİ-ÜFE and 3.14% by TUFE. The dollar and euro offered modest real returns, while gross deposit interest and government bonds resulted in significant losses.

Overall, the stock market’s strong performance over the past five months has firmly positioned it as the leading investment choice, outperforming other financial instruments and inflation.

Source: / Prepared by Irem Yildiz

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