Asset Class Returns

Adam Investing Leave a Comment

Share this Post

I wanted to share an updated version of one of my absolute favorite charts, from our friends over at NovelInvestor. It’s always instructive to get a nice visual reminder of the value of diversification. As you can see, very rarely does the same asset top the charts multiple years in a row and it’s quite common for them to be hammered right after a banner year. It’s really difficult to pick the best performing asset year after year. For most of you, particularly those of you with day jobs, STOP TRYING.

Over the long-term the swings work out. Focus on your savings rate, income levels, expenses, and big wins. Those are going to do you a lot more good long-term than trying to win the asset game against the pro’s. If you do want to pick stocks, make sure your focused on value investing in rock solid, long-term holdings, and then ignore those day to day, month to month and year to year.

 

Novel Investor Asset Class Returns TableSource: NovelInvestor.com


Still here? If so consider using Tradeking (Special $200 bonus offer) for your next brokerage and Personal Capital, my favorite tool to see all your accounts in place. You can also support us by using our Amazon link. We get a bit back if you do and it helps keep the lights on.

If you have a moment, sharing this post on one of your various social media accounts (facebook, twitter, pinterest) can really help us gain readers, so if you think this post is worth it, please considering sharing. You can use one of the buttons below.

Don’t forget to check out our Resources Page where we’re working to keep links to the best of the web for personal finance, investing, travel and frugal badassity.

Share this Post

Leave a Reply

Your email address will not be published. Required fields are marked *