The Callan Periodic Table of Investment Returns shows the returns of the capital markets over the last 20 years. It’s easy to follow with its clear presentation and simple layout. Each colored block represents a different part of the capital markets, listed with the highest returning asset classes in any given year at the top, and the lowest returning asset classes in each year at the bottom. As you can see by the movement of the colored blocks over time, asset classes that outperform in any given year can then underperform in a subsequent year, or vice versa. This highlights the importance of including a wide range of asset classes, or diversification, in an investment portfolio. Also, the table’s 20-year presentation provides some historical perspective on the markets, reminding investors that a long-term investing view is often key to reaching financial goals, rather than short-term market timing.
