💨 Abstract

The article discusses the performance of various asset classes over the past year and the importance of diversification in investing. Large-cap U.S. stocks and international markets showed strong returns with moderate risk, while small-cap stocks and real estate were more volatile. Bonds offered low volatility and returns, and commodities provided double-digit gains with higher price swings. Different asset classes respond uniquely to economic factors, making diversification effective in smoothing out portfolio performance.

Courtesy: WTOP Staff