Unlike the seasonal changes that routinely occur during our calendar year, these seasonal investment rotations are difficult to predict consistently… Especially, when unexpected massive storms blow in and disrupt the economy like the coronavirus.
Take a look at the “periodic table of investing” below. This table shows annual returns for various asset classes, ranked from best to worst. Each asset class is color-coded to track who’s the best and who’s the worst performer every year. You can see that some year’s top can also become next year’s bottom, and vice versa. Whereas, the diversified asset allocation portfolio, illustrated by the connecting lines, maintains a steadier middle-ground ride throughout the long-term.
We can never predict next year’s individual best or worst performer, but we can create a diversified portfolio with various asset classes that potentially prevents us from having a single storm impact our entire journey.
Investment advisory services offered through intellicents investment solutions, inc., a federal covered investment adviser.