If you look at the Callan Periodic Table of returns over the previous 10 years, you can see there is no possible way to predict the future of the markets.
The Bogleheads approch of a well diversified, low cost portfolio is an excellent approach to capturing future gains while minimizing downside losses.
What is the Callan Periodic Table of Investments?
Callan releases this chart every January illustrating the annual return by asset class. The format is in the “periodic table”.
Why Is this Report Important to Boglehead Investors?
Bogleheads to not believe an individual investor can outperform the S&P 500 or other industry benchmarks over a sustained period of time. This chart maps out the returns of various asset classes, where the ability to predict next years returns are impossible.
Why Do They Release This?
Its to illustrate that you cannot predict the future of markets. Even if it seems obvious that after a down year, the next year will be strong, its never 100% accurate.
What is Stock Market Timing?
Stock market timing is attempting to pick stocks that perform better than a benchark such as the S&P 500.
AssetRise (below) assists investors to keep their portfolio in balance to minimize losses and maximize gains.
