Whether you're a new or experienced investor, the temptation to chase short term returns can be hard to resist. This table illustrates how different asset classes have performed relative to a multi-asset portfolio diversified across multiple assets, strategies & managers .
Different asset classes – like shares, bonds and property securities – carry different levels of risk and return. Investing in a single asset class is risky when you consider no one asset class consistently outperforms on a regular basis. This chart shows that no one asset class consistently outperforms on a regular basis.
When things are great, we feel that nothing can stop us. And when things go bad, we look to take drastic action. Because emotions can be such a threat to an investor's financial health, it is important to be aware of them. This chart helps investors understand and be aware of the negative consequences of impulsive and irrational reactions to emotions.