150 Asset Class Returns in One Chart by AttainCapital

We love these new looking charts that keep popping up (the latest was over here on Ritholtz) showing how the different asset classes go from the top to the bottom, to the middle, and so forth depending on the year… implying if not outright saying that it’s a fool’s game to try to pick which one will be best… just diversify into them all.. (which is what the AA gray box represents)

But we have two issues with these charts.

  1. They don’t include managed futures…. An easy fix.
  2. They do a good job of showing how the different assets can be the best or worst performer in different periods – but they don’t really give a good view of how good or bad they were in those periods.

For us, a more telling graphic would show each ‘block’ in a ranking above and below the ‘zero line’ (in dark red), so you could more easily see when certain asset classes lose money in a year. In addition, comparing the volatility of a few different assets would be nice, showing how far they move year to year…

Here’s our amended graphic… with a Managed Futures & Emerging Market line included to show its consistency of performance over the past 15 years. What else does this chart tell you?

(Click here to enlarge)

Asset Class Compare 15 Years Asset Class Returns
Asset Class Returns

Data Courtesy: Novel Investor
Disclaimer

Asset Class IndexManaged Futures = Newedge CTA Index

“The Managed Futures Blog is a compilation of thoughts, research, attempts at humor, and more from the team at Attain Capital Management (“Attain”). Attain pairs high net worth individuals, RIA’s, and institutional investors with alternative investments in commodities, managed futures, and global macro strategies through privately offered funds and managed accounts. Click here to sign up for their insight and analysis.”