Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Asset Performance 1985-2020

edited November 2020 in Other Investing
Assets Performance Year over Year...anyone have next years results so I can invest in them early?



  • Mark said:

    A recent AAII article showed that beginning with equal investments in the S&P 500 sectors and rebalancing yearly from the best performing sectors to the lesser performing ones increased one's returns substantially over time. However that must be taken with the willingness to go through all the watching and rebalancing efforts required. Your choice.

    Maybe using this chart to rebalance one's portfolio at the end of each year might be an interesting study.
  • edited November 2020
    Here is a link that provides a quick visual overview of relative and absolute performance of the 11 Sector SPDRs over various time periods....

  • MJG
    edited November 2020
    Hi Guys,

    These data are a great set that demonstrates randomness. If a pattern does exist it completely escapes me.

    Does anyone see some semblance of a pattern here? If you do, your’e far more insightful than me Gunga Din. But that is too easy a challenge.

    The references all provide terrific ways to present complex data in a meaningful and understandable way. Hooray for them all. Hooray for us potential users.

    Best Wishes
  • davfor said:

    Here is a link that provides a quick visual overview of relative and absolute performance of the 11 Sector SPDRs over various time periods....

    Seems these 11 sector etfs are each representative of a subset of only Large Cap companies in the Large cap Asset class.

    Very interesting data. Thanks.
  • @MJG,
    Well, one thing that struck me, and I am sure others way smarter have smarter things to point out, is that balancing RE and LC may serve one well over time. Perhaps w some bonds.

    Just squint for pattern recognition around the middle, and the swings back and forth, with avoidance of the outliers / endpoints.

    Of course, maybe that's bunk, when I squint at gold and internatl bonds ....
  • MJG
    edited November 2020
    Hi Guys,

    Some investment classes move up and down together. Obviously, these classes do not provide real diversification. A look at all classes returns data over time shows the degree of correlation among various asset classes. The higher the number, the less meaningful as a diversifier. Here is a Link that provides recent and useful correlation data:

    These are important data when making asset class investment decisions. Employ, profit, and enjoy.

    Best Wishes for you and your investment outcomes.

  • edited November 2020
    Christine Benz from Morningstar has also examined asset class correlations.
    I believe this is her latest article on the subject.
    The PDFs linked below depict historical asset class correlations over various time periods.
    1 Yr
    3 Yr
    5 Yr
    10 Yr
    15 Yr
  • edited November 2020
    Unfortunately long term performance was off since 2010. The SP500 did better than the rest (SC=IWM, GLD, international=FSPSX, EM=EEM and REIT=VNQ) + had lower volatility and why I don't pay attention to historical returns and I'm never over diversified.
    See 10 year (chart) of the above.
  • edited November 2020
    Don't hold much cash. Looks like a good time to invest in reits.
  • beebee
    edited November 2020
    @FD1000, go back a decade and notice what a difference that decade (2000-2010) made for the S&P 500 where it lost 20% of its total value (inflation adjusted). Then there were the nineties (1990-2000) were the S&P 500 grew 340% (inflation adjusted).

    When you get on this roller coaster is as important as how long you ride it.
  • edited November 2020
    The S&P 500 has generated excellent returns over the trailing 10 years.
    However, its performance the preceding 10 years (11-27-2000 to 11-26-2010) was subpar.
    Small Caps (IWM), REITs (VGSIX), International (VGTSX), Emerging Markets (VEIEX), and Investment-Grade Bonds (VBMFX) vastly outperformed the S&P 500 during this period. Link
    The $1M question: How will these asset classes perform in the future?

  • @little5bee : All REITS or do you have a favorite ? A lot of people working from home now. I believe most will continue if given the chance,
    Have a good weekend, Derf

  • @Derf no, just an observation based on the chart. Reits seem to fluctuate the most...from worst to first and back again.
  • @Derf - so many different types of REIT's

    REIT Sectors
  • A little dated 12/2019.
  • HFSAX...Hundredfold Selective Alternative Fund...which has a $1 million minimum initial investment at Schwab, is apparently 100% invested in real estate, according to Schwab website. I like to screen for low risk/high return funds and this one regularly pops up.
Sign In or Register to comment.