Let’s sum up the year in financial markets. For your attention: Asset class total returns since 2011.
As you can see, with the exception of Long Duration Treasuries, every major asset finished higher in 2024 with Bitcoin leading the way for the second straight year.
Asset class total returns since 2011
My solutions on MQL5 Market: Vladimir Toropov’s products for traders
Another style rotation table from Creative Planning highlights the performance of different indices, showcasing how market cycle fluctuations emphasize the value of diversification. However, diversification neither guarantees profits nor shields against the loss of principal. Like any investment, there is a risk of losing money. The returns presented account for dividend reinvestments but do not reflect management fees or trading costs. Remember that past performance is not indicative of future results!
Annual returns for selected asset classes since 2014
Asset class meanings
Large Cap Stocks are tracked using the S&P 500 Index, which reflects the performance of the large-cap segment within the U.S. equity market.
Mid Cap Stocks are measured by the Russell Midcap Index, representing the mid-cap portion of the U.S. equity market.
Small Cap Stocks are represented by the Russell 2000 Index, which focuses on the performance of approximately 2,000 of the smallest companies based on market capitalization and current index membership.
International Stocks are benchmarked against the MSCI EAFE Index (Europe, Australasia, and Far East), a prominent index comprising common stocks from 22 developed countries.
Emerging Markets are measured by the MSCI Emerging Markets Index, which tracks stocks from emerging market countries.
Precious Metals are represented by the MSCI World/Metals & Mining (TR Net) Index, capturing the performance of companies involved in exploring and producing gold, silver, and platinum-group metals.
Bonds are tracked using the Bloomberg U.S. Aggregate Bond Index, which encompasses USD-denominated, investment-grade, fixed-rate, taxable bonds, including government, corporate, mortgage-backed, and asset-backed securities with maturities of at least one year.
Real Estate is measured by the Dow Jones U.S. Select REIT Index, which reflects the performance of publicly traded U.S. Real Estate Investment Trusts (REITs).
Investing in various asset classes
It’s important to note that the portfolio of an ETF or mutual fund may differ significantly from the holdings of these indices. Additionally, these indices are not directly investable, and their performance does not account for expenses associated with active portfolio management.
My solutions on MQL5 Market: Vladimir Toropov’s products for traders
Good luck in trading and investing!