If You Had The Power Of Perfect Knowledge

Of course, no one has the power to predict which investments will be number one every year.

Surprisingly, accepting that and instead maintaining equally-weighted positions in the 12 types of investments, you would have averaged a 7.5% annual return with less volatility.

To be clear, to average that 29.9% return every year for 15 years, you would have had to invest 100% of your portfolio in commodities on January 1st, 2002, and held it until the end of the year, and then in emerging markets on January 1st, 2003, and you would have done that again and again every year through 2016.

The yellow boxes highlight the number one asset classes in each of those 15 years.  It’s obviously totally unrealistic to expect this. It would take a miracle to pull this off.

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