Asset Classes

Why invest in a Asset Class ?

Overview

An asset class is a group of securities that have similar financial characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. Asset classes can fall under the the following categories/ groups:

  • US Equities
  • Global Equities
  • Bonds
  • Commodities
  • Currencies (Long USD)
  • Real Estate
  • Multi-Asset groups

Most financial experts agree that some of the most effective investment strategies involve diversifying investments across broad asset classes like stocks and bonds, rather than focusing on specific securities that may or may not turn out to be “winners.” Diversification is a technique to help reduce risk, however it does not guarantee income from investments.

Historical Correlations

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Performance

Annual Returns by Asset Class since 2009

Quarterly Returns by Asset Class since 2009

 

 

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