Sometimes a picture really is worth a thousand words. Whether it’s also a window into the future is an open debate. With that in mind, we’ll simply post a chart of last week’s returns for various asset classes. Take note that the high-flying returns that risk has so generously dispensed of late has reversed course. Risk does indeed pay off handsomely at times, particularly over the long haul. But there can be a price to pay for touching the sky in the short term. The question is, how big a price?
Indices/Funds: MSCI EM ($), Russell 2000, MSCI EAFE ($), DJ REIT, S&P 500, DJ-AIG Commodity, ML HY Master II, Pimco EM Bond Fund ($), Lehman Bros. Aggregate, Pimco Foreign Bond ($)