At any given time, or any year, or any phase of the market, one asset class gets all the attention. Tech stocks one year, natural resources the next. Investors can be tempted to chase after those outperformers, hoping to maximize their returns. Of course, none of us can predict the future or who will be next year’s star.
Nothing illustrates this better than the ‘periodic table of asset performance’ which documents the top performing asset classes over a period of years.
In this example, Canadian Bonds were the top performer in 2011, but a laggard in the years 2016 and 2017. Meanwhile, Emerging Markets had a difficult year in 2011, but shone as the best performer last year.
A well-diversified investor is best placed to always take advantage of the assets having their day
Larry Kleinmintz, R.H.U., T.O.T., M.D.R.T.
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