It’s the same at the end of each year. People talk about 2022 as if cash will be king and predict 2023 with confidence. you are wealthy
Callan Associates annually updates its “Periodic Table” showing the relative performance of eight major asset classes over the past 20 years. The latest can be found on the website Callan.com. The best performing asset classes are listed at the top and sorted down to the worst performing assets. Above is the latest snapshot from 2003 to 2022 (click to enlarge). I find it easiest to focus on specific asset classes (colors) and visually see how their relative performance changes.
The Curran periodic table of investment returns conveys a strong case of diversification across asset classes (equities vs. bonds), market caps (large vs. small), and equity markets (U.S. vs. non-U.S. global). increase. This table highlights the uncertainty inherent in all capital markets. The ranking changes every year. It’s also worth noting the difference between absolute and relative performance, given the wide range of returns in the best-performing asset classes over the last 20 years.
Important points: The best you can do is identify assets that are great long-term investments, accepting that short-term rides are unpredictable and will never come out on top every year.
(Dilbert comic source)