What do you know about the past and future returns of your investments?  

Paul analyzes the 20-year returns of 10 major equity- and fixed-income asset classes. What do we have to learn?  Returns can be totally unexpected but the relationship between asset classes remain the same as they have for almost 90 years. The table below allows investors to examine the year-by-year returns of large and small U.S. …

Paul analyzes the 20-year returns of 10 major equity- and fixed-income asset classes. What do we have to learn?  Returns can be totally unexpected but the relationship between asset classes remain the same as they have for almost 90 years. The table below allows investors to examine the year-by-year returns of large and small U.S. equity asset classes, REITS, international large-cap blend and U.S. and international bond asset classes. This podcast examines past results as well as predictions for the next decade from both the largest investment management companies and major financial institutions (Vanguard, J. P. Morgan , GMO, Blackrock, and John Bogle).

I think it’s fair to say the Callan Periodic Table is one of the best teaching tools for investors trying to come to the realization that 1. Investing includes a lot of short-term risk 2. Last year's winner is not likely to become next year's big winner  3. Owning many asset classes may not make you more money in the long run but it protects you from making big mistakes. 4.  You may not make the kind of returns you expect.

Paul also references an article by Christine Benz, Morningstar’s Director of Personal Finance, “Experts Forecast Long-term Stock and Bond Returns”

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