The asset quilt is one chart that settles a lot of arguments. Picture a grid. Each column is a year, and each colored block is an asset class, stacked from the best performer that year down to the worst. Do that for a decade or two and a pattern jumps out. The colors scramble. Last year's winner routinely slides to the middle or the bottom, and something that lagged climbs to the top.
That is the whole lesson. Nobody reliably knows which slice will lead next year, and chasing whatever won last year is how people buy high right before the ranking flips.
It also explains why a sensible portfolio always holds something that is annoying you. The laggard this year is often the hedge that saves you the year the leader falls apart. You can open an interactive version in our tools and resources section and watch the colors jump around yourself.
Hosted byNick GeorgeCFP®, ChFC®, CLU®, IWA™FounderView bio →
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