I love looking at these each year. They serve as a healthy reminder that:
a) asset classes rally in multi-year streaks…
b) …except when they don’t
c) any asset class can “win” any given year, and any can “lose” – even last year’s big winners
d) diversification is superior to trend-following for most investors
e) when everyone has given up on an asset class, the wheel is about to turn and fortune is about to shine its light into the dark corner we least expect it to
f) most importantly, there is no one in the universe who has correctly handicapped all these shifts, because if there were he or she would be managing trillions of dollars
Click to embiggen!