asset perf

Source: JP Morgan

 

Whenever anyone asks me about my favorite sector or market for the coming year, I like to show the table above. While not quite a quintillion-to-one bet, the table reveals what a challenge it is to consistently identify the best asset class for the coming year. No one seems to be able to do it regularly.

The recognition of that truth hasn’t stopped anyone from trying, as noted in the Bloomberg News story earlier this week: Hedge Funds’ Assets Increase 17% to Record $2.63 Trillion. Hence, the romancing of alpha continues even if it means forsaking beta.

 

Continues here

Category: Asset Allocation, Digital Media, Investing

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “What is the Best Asset Class in 2014 Going to Be?”

  1. Stock Soup says:

    Just for the fun of it, I’m going with the Russell 2000 as lower quality smaller shares can do well mid bull cycle.

    I’ll be back next year to say “I told you so” and act like a genius.

    Of course, if R2000 under-performs, I will conveniently “forget” my prediction, an no one will be the wiser. I can’t lose at this game!

  2. boveri says:

    Also for the fun of it I’ll say forget asset class and go with Google who is investing its cash horde in in a way its never been done before. As Andreessen said two years ago, software will eat the world.

  3. intlacct says:

    ‘Bi metro aristo’ (in all things moderation): asset allocation looking good for the almost retiree set!

  4. WickedGreen says:

    Tempting – especially from a contrarian perspective – to suggest that the best position to take is ‘short the web’.

    Unaccountable intel agencies read your email and blog posts … hackers steal your financial data … the cloud is unreliable bs … jobs not offered due to years-old pix on social media websites … cat/toilet videos are passé … anything worthwhile has already been said many times over … sorting through it all is a huge timesuck … electronic networking is anything BUT social … ergonomic injuries are an unheralded public health crisis … digital hardware from manufacture to landfill is an environmental disaster, big data monoliths creepier by the second, ‘the internet of things’ wins the George Carlin All-Time Achievement Award for useless euphemism, etc., etc.

    It was fun. We like bright shiny things.

    And it smells like the cycle is almost over.

  5. wtcombs says:

    Hotels REITs specifically focused towards upper upscale and luxury. The pipeline for developing these is non-existent, which is unlike other REITs that buy Residence Inns and Hilton Garden Inns. The hotel REIT index crushed the S&P 500 last year (Baird has an index). Stocks in this space that are interesting: FCH, BEE, SHO, and OEH. Also, gold miners are going to come back. There I said it………i’ll let myself out.