Time, Diversification and the Volatility of Returns

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

Equity Total Returns

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

20-Year Annualized Returns by Asset Class

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

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

Correlation of U.S. Bonds to S&P 500

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

Super-Cycles – Commodities, Stocks, and Bonds

Super-Cycles – Commodities, Stocks, and Bonds The importance of asset allocation and diversification: commodities, stocks, and bonds do not necessarily moved together over the long term. Image: Wells Fargo Investment Institute