What A Difference A Year Makes

What A Difference A Year Makes

Every year we update this 'quilt' chart of the major asset classes and their performance to illustrate that picking winning asset classes is a fool's errand. But long term returns (far right column) can be deceiving. 

Check out the how the numbers change (decrease!) when you add another year to the chart...in this case the crash of 2008.

Even more humbling. Now you can see that the 11 year returns for U.S. stocks, although still not terrible in the grand scheme of things, aren’t nearly as high when you include the crash of 2008.

Final Note:  2018 was the first time in ten years that 'Cash' outperformed all else. Who would have guessed that on 12/31/2017?