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There Is No Pattern

There Is No Pattern

April 26, 2017
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The next time you think about rejiggering your investment portfolio to overweight some of the recent winners (or losers) consider this patchwork chart.  There's no discernable pattern amongst different asset classes.  Some experience worst-to-first reversals in a year or two, others meander in the middle for extended lengths of time.  

By holding a diversified portfolio and rebalancing it periodically back to its initial target, you're certain to own enough of tomorrow's absolute winners without being overallocated to tomorrow's absolute losers.  And because all "core" asset classes are expected to have decent long-term returns, this should be more than sufficient to achieve your long-term goals.


Past performance is not a guarantee of future results. Mutual fund performance shown includes reinvestment of dividends and other earnings but does not reflect the deduction of investment advisory fees or other expenses except where noted. This content is provided for informational purposes and should not to be construed as an offer, solicitation, recommendation or endorsement of any particular security, products, or services.