Earlier this year, my colleague send me this Periodic Table:
Here’s what it says at the bottom:
The Callan Periodic Table of Investment Returns conveys the strong case for diversification across asset classes (stocks vs. bonds), investment styles (growth vs. value), capitalizations (large vs. small), and equity markets (U.S. vs. international). The Table highlights the uncertainty inherent in all capital markets. Rankings change every year. Also noteworthy is the difference between absolute and relative performance, as returns for the top-performing asset class span a wide range over the past 20 years.
Key takeaway: it is more important to diversify your investments than to try to pick the next “Apple stock.”