Asset Class Returns (2000-2019)

The chart provides a comprehensive overview of asset class returns from 2000 to 2019, highlighting the volatility and potential of different investment vehicles. Small stocks exhibit the highest potential returns with a peak of 47.25%, but also the greatest risk, with a low of -33.79%. This suggests a high-risk, high-reward scenario for investors. Large stocks, while slightly less volatile, still show significant fluctuations, with a high of 33.11% and a low of -37.6%. Corporate bonds offer a more stable investment, with a high of 23.89% and a low of -7.24%, indicating a more balanced risk-reward profile. Alternatives and treasuries present the lowest volatility, with highs of 19.98% and 13.74% respectively, and lows of -19.03% and -3.57%. These asset classes may appeal to risk-averse investors seeking steady returns. The 20-year annualized returns further emphasize the long-term potential of these investments, with corporate bonds leading at 7.68%, followed by small stocks at 7.59%. This data underscores the importance of setting long-term, purposeful investment goals, as equities have historically demonstrated higher potential returns than fixed income investments. Monitoring goal progress and adjusting portfolios as needed is crucial for optimizing investment outcomes.

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