Asset Class Returns vs. a Balanced Portfolio

Wednesday, October 8th, 2008 by Cass Chappell, CFP®


Another slide from the JP Morgan “Guide to the Markets 3Q 2008″ series.


Each color on the chart (click here for a bigger version) represents a different major asset class, year by year, since 1997.  As an example, follow the Russell 2000 (black square), year by year, since 1997.  Notice how it has been a top performer and a bottom performer. 

You will also notice that this pattern holds true for most of the indices (colors) represented in the chart.

Next, focus on the “balanced” portfolio (white).  This portfolio is hypothetical.  It is made up of a combination of several of the various indices (much like your individual portfolios are).  This balanced portfolio was NEVER a top performer. BUT, it was never a bottom performer either.  Of course, past performance is no guarantee of future results.

This is a hypothetical illustration and your results will vary

This is not intended to be specific advice, please contact your advisor regarding your specific situation.

All indices are unmanaged and can not be invested into directly

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