Asset Class Performance Chart 2005 Thru 2018

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On of the simplest and easiest ways to reduce risk in a portfolio is diversification. Holding assets spread across different types, classes, countries, etc. not only reduces risks but also provides a cushion to a portfolio when markets head south as we witnessed in December 2018. The following chart shows the importance of diversification as no one asset class was the best performer every year.

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Note Past performance is not a guide to future performance and may not be repeated.

Source: Schroders, Refinitiv data correct as of 01 January 2019.  Stock Market: MSCI World Total Return Index, Property: Thomson Reuters Developed Market Real Estate Total Return Index. Cash: IBA US dollar interbank LIBOR 3 month, High Yield Bonds: BofA Merrill Lynch Global High Yield TR Index, Investment Grade Bonds: ICE BofAML Global Corporate Total Return Index, Commods: Bloomberg Commodity Index, Gold: Gold Bullion LBM $/t oz. All show total return in local currency.

Article source: 14 years of returns: history’s lesson for investors, David Brett, Schroders

Countries Without Recessions For The Longest Time

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Australia is known as the “Lucky Country” since it hasn’t had a recession for the highest number of years. In addition the country is also lucky because it is blessed with rich natural resources. Some of the other countries without recessions in many years are shown in the chart below:

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Source: RFE/RL

It is interesting that India is the next top country with no recessions since 1996.

 

Knowledge is Power: Best Canadian Stocks, Automation Ironies and Frontier Markets Edition

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The Shanghai Composite is leading global indices this year with a jump of over 21% so far. India is up by over 5% while Brazil has increased by a decent 12% year-to-date. In developed Europe, DAX is up by over 10%. It remains to be see if the rest of the year adds more returns to global markets or they where they will end by December.

Below are some interesting reads for this weekend:

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Prague, Czech Republic