User:LadyGeek/Callan periodic table of investment returns

The  is patterned after Mendeleev's periodic table of the elements and features well-known, industry-standard market indices as proxies for each asset class.

The table shows returns for ten asset classes, ranked from best to worst. Each asset class is color-coded for easy tracking. . It was created in 1999 by Jay Kloepfer.

Overview
The chart is intended to show the importance of diversification across asset classes (stocks versus bonds), investment styles (growth versus value), capitalizations (large versus small) and equity markets (U.S. versus international).

Refer to the table below. The rankings change every year, thereby demonstrating two key principles of investing:


 * Diversification: by owning the entire market (all of the asset classes), susceptibility to changes in market returns is minimized.
 * Past performance does not predict future performance.

History and changes
The composition of the table has changed over the years. The prior spreadsheets are at Callan Periodic Chart 2017: Dispersion of Asset Class Returns and Callan Periodic Table 2017: Statistics

How to read the table
For example: Real estate (a measure of the stock performance of companies engaged in specific real estate activities in the North American, European, and Asian real estate markets). Starting at the left side, this measure ranked:


 * 2001 - 7th
 * 2002 - 2003 - 3rd (2 consecutive years)
 * 2004 - 1st
 * 2005 - 2nd
 * 2006 - 1st
 * 2007 - 9th
 * 2008 - 8th
 * 2009 - 3rd
 * 2010 - 2nd
 * 2011 - 7th
 * 2012 - 1st
 * 2013 - 5th
 * 2014 - 1st
 * 2015 - 4th
 * 2016 - 5th
 * 2017 - 2018 - 6th (2 consecutive years)
 * 2019 - 4th
 * 2020 - 9th

Putting the table into perspective
Periodic tables provide a great visual about diversification benefits, but tend to be more qualitative than quantitative. The simple ranking from best to worse notably does not allow one to easily appreciate the scaling of annual returns. The effect of compounding over the long-term is also hard to perceive with such per-annum table.

The following graphs are therefore useful to put such a periodic table in perspective.

Create your own periodic table
A spreadsheet for creating your own periodic table is available in this.

The latest version and download instructions are in this post, which is a direct download from Google Drive.

Detailed instructions and revision history are in the "README" tab.

Forum discussions

 * . A comprehensive list of asset class returns compiled by forum member Tamales.
 * . A comprehensive list of asset class returns compiled by forum member Tamales.
 * . A comprehensive list of asset class returns compiled by forum member Tamales.