Published on June 12, 2014
Perhaps nothing better illustrates the importance of implementing and maintaining a diversified portfolio than seeing how allocations to multiple asset classes compare. The chart below ranks the best to worst performing asset classes selected — from top to bottom — for each calendar period shown based on total returns. Through graphical depictions of past performance fluctuations, this demonstrates the historical trend of alternating leadership in the financial markets, as well as highlights the potential dangers associated with attempts to chase last year’s or predict next year’s winners. In short, this chart helps support the case for an asset allocation plan that is customized to include a blend of asset classes.