This is an interesting chart which shows the “ups and downs” of different assets classes over the years & helps to highlight why it is incredibly difficult (if not impossible) to predict which asset class will be number one over the short term.
Also included is an “equally weighted” or diversified portfolio (the white one) which is an equal blend of the twelve asset classes. The diversified portfolio is never in the top three but also never in the bottom four of returns.
If you don’t like the roller coaster ride of trying to invest in the number one sector each year, then choosing a diversified portfolio will help smooth out those peaks & troughs.
Source TCF Investment