Midway through the year, I update the different asset tables with first-half returns. It’s July, so time for an update.
Before I begin, here’s a quick reminder. The tables are meant to offer basic lessons on diversification, market cycles, and mean reversion.
The only other constant beyond that is the lack of consistency from one year to the next. In time, best performers become worst performers – expensive becomes cheap – and vice versa. And the benefit of middling is apparent. A diversified portfolio forsakes the best returns in order to avoid the worst. Continue Reading…