Shubin Law Group - Web Book - Flipbook - Page 27
Still trying to time the market? Take a closer look.
|is table demonstrates how various asset classes have performed on an annual basis for the last 20 years. As you can see, the
This table demonstrates how various asset classes have performed on an annual basis for the last 20 years. As you can see, the best performing asset classes change dramatically
best performing asset classes change dramatically from year to year. However, a diversioed portfolio (shown in the white boxes)
from year to year. However, a diversified portfolio (shown in the white boxes) that consists of an equal weighting of each of the nine asset classes shown in the chart is much less
that consists of an equal weighting of each of the nine asset classes shown in the chart is much less volatile. Since no one can
volatile. Since no one can predict the future, diversification is critically important to help you reach your investment goals.
predict the future, diversiocation is critically important to help you reach your investment goals.
Best
Annual
returns
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Annualized
average
2023 2004-2023
REITs
Mid-cap
stocks
REITs
Foreign
stocks
Inv-grade
bonds
High yield
bonds
REITs
12.18%
5.24%
58.76%
Large
growth
stocks
5.67%
Small
value
stocks
31.74%
Large
growth
stocks
30.21%
Large
growth
stocks
36.39%
Large
growth
stocks
38.49%
REITs
35.92%
Small
growth
stocks
43.30%
Inv-grade
bonds
12.65%
Small
value
stocks
18.05%
REITs
31.49%
Small
growth
stocks
29.09%
43.06%
Large
value
stocks
-7.54%
Large
growth
stocks
42.68%
Large
growth
stocks
11.29%
Small
value
stocks
22.25%
REITs
Large
growth
stocks
11.81%
High yield
bonds
Mid-cap
stocks
Inv-grade
bonds
REITs
Mid-cap
stocks
REITs
Foreign
stocks
Mid-cap
stocks
28.48%
7.84%
17.77%
34.76%
Small
value
stocks
28.27%
Foreign
stocks
40.48%
Small
growth
stocks
34.63%
High yield
bonds
-25.88%
Large
growth
stocks
-1.51%
Mid-cap
stocks
12.13%
Small
value
stocks
23.48%
-11.18%
22.20%
9.82%
Mid-cap
stocks
Foreign
stocks
Small
growth
stocks
7.05%
Small
value
stocks
-28.92%
Large
growth
stocks
37.21%
Mid-cap
stocks
High yield
bonds
High yield
bonds
Large
growth
stocks
27.60%
Inv-grade
bonds
4.96%
Small
growth
stocks
28.48%
Mid-cap
stocks
25.48%
Large
value
stocks
17.51%
Small
growth
stocks
18.66%
Small
growth
stocks
8.28%
Inv-grade
bonds
Diversified
portfolio
Foreign
stocks
Small
value
stocks
24.50%
Large
growth
stocks
2.64%
Mid-cap
stocks
REITs
Foreign
stocks
Foreign
stocks
Small
value
stocks
-14.48%
Diversified
portfolio
Diversified
portfolio
17.80%
8.28%
Foreign
stocks
Mid-cap
stocks
Mid-cap
stocks
REITs
30.38%
0.01%
Large
value
stocks
13.45%
2.52%
Large
value
stocks
17.34%
Small
value
stocks
34.52%
Mid-cap
stocks
Inv-grade
bonds
High yield
bonds
13.22%
0.55%
17.13%
Small
growth
stocks
22.17%
Large
growth
stocks
33.48%
Large
growth
stocks
13.05%
Diversified
portfolio
Mid-cap
stocks
Mid-cap
stocks
-1.16%
13.80%
18.52%
-4.57%
27.30%
16.82%
Large
value
stocks
25.16%
Diversified
portfolio
Diversified
portfolio
Diversified
portfolio
Diversified
portfolio
Diversified
portfolio
Mid-cap
stocks
13.20%
14.56%
-6.04%
Large
value
stocks
26.54%
13.55%
22.58%
-17.32%
17.23%
8.00%
Small
growth
stocks
11.32%
Large
value
stocks
13.66%
Large
value
stocks
-8.27%
REITs
Inv-grade
bonds
Diversified
portfolio
Diversified
portfolio
25.84%
7.51%
18.74%
-17.88%
Small
value
stocks
14.65%
Large
value
stocks
7.99%
Small
value
stocks
7.84%
Foreign
stocks
Diversified
portfolio
High yield
bonds
Foreign
stocks
Foreign
stocks
REITs
-8.93%
24.60%
7.05%
18.54%
-18.36%
13.74%
Small
value
stocks
7.68%
Small
value
stocks
22.39%
Small
value
stocks
4.63%
High yield
bonds
REITs
High yield
bonds
Foreign
stocks
5.26%
-24.51%
13.44%
7.55%
Large
value
stocks
2.80%
Small
growth
stocks
2.83%
Small
growth
stocks
-26.36%
Large
value
stocks
11.46%
High yield
bonds
Large
growth
stocks
-29.14%
Inv-grade
bonds
Inv-grade
bonds
5.53%
3.17%
24.62%
30.54%
20.22%
11.37%
Large
value
stocks
22.25%
Large
value
stocks
16.49%
Diversified
portfolio
Foreign
stocks
7.10%
21.53%
6.97%
-32.03%
35.41%
Diversified
portfolio
Large
value
stocks
7.05%
Diversified
portfolio
Mid-cap
stocks
Diversified
portfolio
5.60%
Small
growth
stocks
34.47%
Diversified
portfolio
17.21%
Large
value
stocks
-36.85%
19.68%
1.04%
16.80%
Large
value
stocks
32.53%
10.30%
Small
growth
stocks
-1.38%
Mid-cap
stocks
High yield
bonds
REITs
Diversified
portfolio
Inv-grade
bonds
Foreign
stocks
2.27%
-37.97%
31.78%
Large
value
stocks
0.39%
Foreign
stocks
15.26%
Large
growth
stocks
16.71%
High yield
bonds
15.75%
Large
growth
stocks
5.26%
15.78%
23.44%
5.97%
-1.84%
Small
growth
stocks
14.31%
Small
value
stocks
4.71%
Small
growth
stocks
13.35%
Diversified
portfolio
Large
growth
stocks
-38.44%
REITs
Large
value
stocks
15.51%
Mid-cap
stocks
Diversified
portfolio
Diversified
portfolio
Mid-cap
stocks
REITs
-1.55%
15.37%
22.57%
Small
growth
stocks
5.60%
-2.44%
8.60%
Small
growth
stocks
-2.91%
Large
growth
stocks
15.26%
High yield
bonds
Foreign
stocks
Foreign
stocks
High yield
bonds
Mid-cap
stocks
7.44%
4.71%
Large
value
stocks
-3.83%
8.48%
7.50%
-9.06%
Small
growth
stocks
14.59%
REITs
High yield
bonds
Large
growth
stocks
7.08%
REITs
High yield
bonds
5.07%
Small
growth
stocks
-9.31%
Small
value
stocks
-7.47%
Inv-grade
bonds
Inv-grade
bonds
Inv-grade
bonds
REITs
Inv-grade
bonds
2.65%
3.54%
Small
value
stocks
-12.86%
8.72%
-7.57%
-1.54%
15.91%
Foreign
stocks
28.61%
10.76%
Large
value
stocks
-0.17%
Small
growth
stocks
-38.54%
Small
value
stocks
20.58%
Small
value
stocks
-9.78%
Mid-cap
stocks
-41.46%
Large
value
stocks
19.69%
Foreign
stocks
2.76%
Large
growth
stocks
9.07%
13.21%
Small
value
stocks
-5.50%
2.47%
Small
value
stocks
4.22%
Inv-grade
bonds
Inv-grade
bonds
REITs
Foreign
stocks
Inv-grade
bonds
Inv-grade
bonds
Foreign
stocks
Inv-grade
bonds
Inv-grade
bonds
High yield
bonds
2.43%
4.33%
-16.82%
-41.85%
5.93%
6.54%
-6.86%
4.21%
-2.02%
2.46%
High yield
bonds
Large
growth
stocks
6.30%
High yield
bonds
Inv-grade
bonds
4.34%
11.14%
1.95%
17.28%
High yield
bonds
Small
growth
stocks
4.15%
High yield
bonds
Worst
REITs
8.69%
Diversified portfolio
Large value stocks
Foreign stocks
Mid-cap stocks
14.94%
-4.43%
-2.08%
14.32%
17.10%
-13.01%
6.58%
High yield bonds
Investment-grade bonds
Large growth stocks
Small value stocks
REITs
Small growth stocks
As of December 31, 2023. Past performance does not guarantee future results. This chart represents the performance of 9 asset classes over a 20-year period.
Source: Morningstar. Investment grade bonds is represented by the Bloomberg U.S. Aggregate Bond Index. U.S. REITs is represented by the MSCI U.S. REIT Index. High yield bonds is represented by the Bloomberg U.S. High-Yield
2% Issuer Capped Index. Large growth stocks is represented by the Russell 1000 Growth Index. Large value stocks is represented by the Russell 1000 Value Index. Small growth stocks is represented by the Russell 2000 Growth
Index. Small value stocks is represented by the Russell 2000 Value Index. Mid-cap stocks is represented by the Russell Mid Cap Index. Foreign stocks is represented by the MSCI ACWI NR Index. Diversified portfolio is represented
by an equal weighted blended composed of Bloomberg U.S. Aggregate Bond Index, MSCI U.S. REIT Index, Bloomberg U.S. High-Yield 2% Issuer Capped Index, Russell 1000 Growth Index, Russell 1000 Value Index, Russell 2000
Growth Index, Russell 2000 Value Index, Russell Mid Cap Index, and MSCI ACWI NR Index.