Updated Wednesday, November 26, 2014 as of 8:57 AM ET

Which Assets Deliver the Steadiest Returns?

In a world where almost every market report mentions the performance of the S&P 500, it might be wise to consider just how well this measure has performed over time and what role it should play in a portfolio. The numbers suggest that despite some spectacular short-term results, too many investors put too much of their money in large-cap stocks.

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Comments (3)
Great article Craig. I especially like the way you defined measuring stability. Thank you for sharing.
Posted by Bruce B | Tuesday, September 02 2014 at 1:19PM ET
Craig wouldn't a risk adjusted return using the standard deviation and returns immediately show that diversification is important?
Posted by Michael M | Tuesday, September 02 2014 at 4:45PM ET
Craig, I think your focus on 3-year annual returns is misleading as few investors have such a short investment horizon. Your analysis would be more useful if it focused on 5, 10 and 15 year periods starting earlier, say 1990 , and think the comparison of asset classes would look a lot different. Do you have a sofwtare model that could examine these scenarios?
Posted by dana h | Friday, September 05 2014 at 12:26AM ET
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