In past posts, we've looked at the BlackRock chart that covers performance over a 20-year period. The performance shown is for 7 asset classes and ranks performance from top to bottom for each of the 20 years.
It also shows returns for a diversified portfolio, which is something I really like about BlackRock's table. Although the diversified portfolio never is among the top 2 performers, it has excellent performance over the long term. In my opinion, this type of chart is extremely useful in pinning down risk tolerance.
The table below shows a quick estimate of of the diversified portfolio's return for the various sectors represented. For the weights assumed in the table, the return was +13.25% for the year. It is worth noting that this portfolio could be set up in 20 minutes on Monday morning, requires very little maintenance and monitoring, and historically has outperformed much higher cost professional managers over the long term.
Performance numbers obtained from Morningstar.
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