Search Results for: diversification

The S&P 500’s Lack of Diversification – S&P 5 vs. S&P 495 As this chart hightlights, the S&P 500 is less diversified than you think. Image: Lohman Econometrics

The Value of Diversification – 60/40 Portfolio vs. S&P 500 This chart shows the return and volatility of a 60/40 portfolio vs. S&P 500. Image: Fidelity Investments

Time, Diversification and the Volatility of Returns This chart shows how the volatility of returns decreases over time (range of equity, bond and blended total return). Picture Source: J.P. Morgan Asset Management

S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The top 10 U.S. companies represent approximately 35% of the S&P 500 Index in terms of market capitalization, which can be a concern for investors in terms of diversification. Image: Morgan Stanley Wealth Management

Equity Total Returns Geographic diversification hurt equity performance last year. Image: Richardson Wealth

Total Real Return of $1000 Investment with Dollar Cost Average vs. S&P 500 Valuations Diversification does not always work and valuations matter. The S&P 500 can take a very long time to recover from a bear market. Image: Real Investment Advice

20-Year Annualized Returns by Asset Class The average American investor still underperforms the market over the long term, generally due to panic selling, emotional biases, the herding effect and lack of diversification. Image: J.P. Morgan Asset Management

Correlation Across Assets The 1-year rolling correlation remains low between asset classes for diversification. Image: Goldman Sachs Global Investment Research

Cross-Asset Correlation and Global PMI Cross-asset correlations imply there is limited scope for diversification. Image: J.P. Morgan

Correlation of U.S. Bonds to S&P 500 The diversification benefit of bonds could be reduced, as the correlation of U.S. bonds to equities has become less negative. Image: Morgan Stanley Research