Each year, asset classes reshuffle. US large-cap, small-cap, international developed, emerging markets, bonds, REITs, and commodities take turns at the top and bottom. No asset class has been #1 for more than 3 consecutive years since 1990.
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ALAN INTELLIGENCE · alanglobalintelligence.com
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Past performance is not indicative of future results. This material is for informational and educational purposes only and does not constitute investment advice, an offer to buy or sell any security, or a recommendation. Data from publicly available sources believed to be reliable but not guaranteed. All investments involve risk, including possible loss of principal.
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ALAN GLOBAL INTELLIGENCE · alanglobalintelligence.comSource: SPY, IWM, EFA, EEM, AGG, VNQ, DJP · weekly refresh cadence
What history says
Editorial commentary written by ALAN analysts. Figures cited below are analyst-authored context — they are not derived from the chart above and may reflect different windows or sources.
Performance-chasing is the most expensive behavioral mistake
An investor who annually rotated into the prior year's best asset class would have underperformed a static diversified allocation by approximately 2-3% per year since 1990.
Diversification is the only free lunch in investing
A portfolio holding equal weight across 6-7 asset classes has produced similar returns to the S&P 500 with 25-30% lower volatility and shallower drawdowns.
The 'periodic table' visualization is the most effective client communication tool
The visual chaos of the color-coded return table communicates unpredictability more effectively than any single number or chart. Use this in every annual review.
For your portfolio
Set target weights across asset classes once, in writing, and rebalance to them on a calendar — with the rankings reshuffling every year, a move toward last year's leader is statistically a move toward this year's laggard.
For information and research only. Not investment advice. ALAN does not place trades or execute orders. Figures come from the sources shown and can lag the market; verify independently before making decisions. Past performance is not predictive of future results.