Emerging equity markets outperformed developed markets until a few years ago. Since then emerging equities have lost their shine and now their developed peers are outperforming them as the chart below shows: Click to enlarge Source: Econosights – Should we worry about emerging markets?, AMP Capital

The Callan Periodic Table of Investment Returns is an excellent tool to analyze the returns of various asset classes and the importance of diversification The chart from for the time period 1998 to 2017 is shown below: Click to enlarge   Source: Callan Associates

One of the biggest factors that impact investor returns with equity investing is selling out when markets correct.  Patience and not panicking is the key to long-term success with stocks. Just as stocks can go up they go down as well. For instance, the S&P 500 has seen annual average declines of 13.8% since 1948. …

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