Asset Class Performance in 2008

Individuals who have only been invested in equities this year are no doubt suffering.  Below we highlight the year-to-date performance of various asset classes in 2008.  The results clearly show the importance of asset allocation.  While the S&P 500 is down 15.82%, Treasuries are down just 44 bps, and commodities like gold and oil are up significantly.  With the amount of ETFs out there that track all asset classes, there really is no excuse to not be diversified.

click to enlarge

Comments

[GMiki1:]

Although Treasuries haven't lost anything in nominal terms, we're in a highly inflationary period. What is the rate of inflation? Somewhere between the official rate of 4 percent and and the Shadow Government Stats rate of maybe 16 percent. Treasuries aren't paying even the official rate of inflation, so with Treasuries, you're losing money.

Oil is certainly good for the long run, but there may well be a consolidation. Gold is probably about to start another swing up--though no one can see the future that exactly.

2008 Jul 13 12:36 PM