Source: Novel Investor


Have a look a the chart above (click on the chart for a larger interactive version). This chart ranks the past 15 years of returns for eight major asset classes (large-cap stocks, small-cap stocks, developed-market stocks, emerging-market stocks, real estate investment trusts, high-grade bonds, high-yield bonds and cash). We can divide these categories even further but we’ll use these for now.

What you should take away from the chart is how difficult it is to predict the best-performing asset class in any given year. To choose the right class consistently is almost impossible.

Continues here

Category: Asset Allocation, Data Analysis, 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.

5 Responses to “Annual Asset Class Returns”

  1. Stock Soup says:

    that’s a helpful, yet dangerous table you got there!

    on the one hand, REITS were the best assets class 8 of 14 years

    on the other hand, if you had a $100 in REITS in January 1, 2007,
    3 years later, that $100 would be worth $38. Ouch!

  2. MarkKlose says:

    Stock Soup, actually at the end of 2009 (3 years) it would have been worth $67.22. and would now be worth $133.48.

  3. AmericanObserver says:

    Stock Soup, you counted the 2009 as negative 28% when it actually shows positive 28%.

    However, one cannot ignore volatility, which is what makes diversification WITH REBALANCING so important.

    Most (all) investors do not hold for the exact periods in the charts, and their returns will vary. I’ve run several hypotheticals using Mutual Funds to represent asset classes, and found that semi-annual or annual rebalancing could help reduce volatility and improve returns.