The Callan Periodic Table of Investment Returns depicts annual returns for 10 asset classes, ranked from best to worst performance for each calendar year over a 20 year period. https://www.callan.com/periodic-table/
The most valuable aspect of the colorful table is how easy it is to see that an investment category that topped the chart two years ago may now be sitting at the bottom. There is never a string of more than a couple years where an asset tops the charts. Investing in last years winner means it will likely be further down the table next year.
For example, Large cap stocks were at the bottom of the 10 assets in 2002, in the middle of the pack from 2005-2012, and at the top in 2015 and 2019. Investors buying large cap stocks at the top of the market today are likely to be disappointed in the near future.
Major take-aways:
- Diversification! Invest in all 10 asset categories
- No one can successfully time the market and predict which investment classes will provide the best returns in coming years.
- Determine your risk tolerance in relation to your investment time horizon and rebalance your portfolio once a year.
We offer personal Business loans services around the world. We strive to provide high quality service and high customer satisfaction, while possible financial services. We pride ourselves on our commitment to our customers; We can give you personal loans, auto loans, business / investment loans, short term loans. You can contact us for an affordable loan now at 2% interest rate. Contact us now via E-mail: abdullahibrahimlender@gmail.com
ReplyDeleteWhatsApp Number +918929490461
Mr Abdullah Ibrahim