Large cap growth stocks were the winning category in 2017! Think it’s time to move your money into this high performing category? Think again.
It can be very tempting to move your money when markets are hot, but history shows in the long run, this seldom works to your advantage.
Every asset class outperforms at some point—but also underperforms at other times.
The table below shows performance of a variety of asset classes over the past decade; you can see that the winning category varies from one year to the next.
In 2008, fixed income was at the top, and the very next year it was the second lowest category. Small cap followed a similar path from 2010-11, and in 2015-16 it went from lowest to highest.
How can you avoid these drastic swings in your portfolio? By strategically diversifying across a variety of categories. As demonstrated in the table, a diversified portfolio (the white boxes) delivers the most consistent performance over time.
With the CDSPI Funds we can help you create a diversified portfolio across different asset classes, regions and sectors. Or we can help you choose a convenient fully diversified solution with CDSPI’s Balanced and Portfolio Funds.
Getting Started is Easy!
An Investment Planning Advisor from CDSPI Advisory Services Inc. will develop a personalized financial plan and then recommend the right funds in accordance with your objectives. Call 1.800.561.9401 or email us at firstname.lastname@example.org, or learn more about our funds here.