Callan Associates updates a “periodic table” annually with the relative performance of 9 major asset classes over the last 20 years. Above is the most recent snapshot of 2005-2024, which you can find on their website . The best performing asset class is listed at the top, and it sorts downward until you have the worst performing asset. I find it easiest to focus on a specific Asset Class (Color) and then visually noting how its relative performance bounces around.
The Callan Periodic Table of Investment Returns conveys the strong case for diversification across asset classes (stocks vs. bonds), capitalizations (large vs. small), and equity markets (U.S. vs. global ex-U.S.). 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.
Beyond showing the value of diversification, you can still see how performance chasing is hard to avoid. Look at the orange and maroon squares from 2005 to 2010; Emerging Markets Equity and REITs had some crazy-awesome years in the past, and everyone wanted to own them back then. These days, you hardly hear anything. The same could easily end up being true for what has been doing well in the last 5 years – US Large Cap Equity. Or not. Everything is always so much clearer in hindsight!
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