Archives for February 5, 2018

Callan Periodic Table of Investment Returns 2018

qara.info has partnered with CardRatings for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. Thank you for your support.

callan2016clipWe’ve all been told that past performance is no guarantee of future returns, but it’s still hard to buy an investment that has been performing poorly. We should remember the historical power of diversification and that even though something may look horrible now, good news may be just around the corner. We also need to remember that whatever is hot today won’t stay that way forever.

Callan Associates updates a “periodic table” annually with the relative performance of 8 major asset classes over the last 20 years. You can find the most recent one at their website Callan.com. The best performing asset class is listed at the top, and it sorts downward until you have the worst performing asset. Here is the most recent snapshot of 1998-2017:

callan2018

The Callan Periodic Table of Investment Returns conveys the strong case for diversification across asset classes (stocks vs. bonds), investment styles (growth vs. value), capitalizations (large vs. small), and equity markets (U.S. vs. non-U.S.). The Table highlights the uncertainty inherent in all capital markets. Rankings change every year. Also noteworthy is the difference between absolute and relative performance, as returns for the top-performing asset class span a wide range over the past 20 years.

I find it easiest to focus on a specific asset class (Color) and then visually noting how its relative performance bounces around. Last year, I noted that Emerging Markets (Orange) and MSCI World ex-US (Light Grey) have been near the bottom for a while and I was still holding them and waiting for them to bounce back. In 2017, my diversification and patience paid off and they were indeed at the top again.

dilbert_divers

qara.info has partnered with CardRatings for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

ICYMI: E-Trade Super Bowl 2018 Commercial “This Is Getting Old”

qara.info has partnered with CardRatings for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. Thank you for your support.

E-Trade’s newest commercials (remember the baby?) have the basic premise of (1) you don’t have enough money and (2) to solve this, you should open an E-Trade brokerage account. The Super Bowl commercial was more specific: Don’t be 85 years old and #stillworkin. Here’s the full commercial from YouTube:

qara.info has partnered with CardRatings for selected credit cards, and may receive a commission from card issuers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned. MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.

monaliza.kiev.ua

777.fashioncarpet.com.ua

ry-diplomer.com/diplomy-v-arkhangelske