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Q4 2021 hedge fund letters, conferences and more
Last year was a good year for stocks, but not bonds. The post-2008 recovery has been spectacular, one of the best 13-year U.S. stock markets. I provide details for the entire 96 years as well as five-year and 10-year sub-periods
Here are investment performance highlights for 2021 and the 96 years 1926-2021:
- Most asset classes earned positive returns in 2021. Real estate and commodities led with 41% returns. Bonds and gold lost value in the year.
- Target-date funds with long horizons and moderate risk earned double-digit returns in 2021, as they did in 2020.
- Stocks, as measured by the S&P 500, returned 29% in 2021, triple their 96-year average of 10%. Bonds lost 2% based on the U.S. Investment Grade (Bloomberg) Aggregate index, well below the 96-year average of 6%.
- The 2021 stock return was above median and the 2021 bond return was below median.
- The recovery from the 2008 stock market crash has been sensational. Stocks have soared 600% in the past 13 years, one of the best 13-year periods.
- Target-date funds started in 2008 and have grown to $3 trillion. Conservative TDFs have earned 8% per year over their 14-year history while aggressive TDFs have earned 9.5%. TDFs are excellent benchmarks for multi-asset portfolios.
- Details are provided in a table.
- There’s never been a worse time to retire.
1. Most asset classes earned positive returns in 2021. Real estate and commodities led with 41% returns. Bonds and gold lost value in the year.
2. Target-date funds with long horizons and moderate risk earned double-digit returns in 2021, as they did in 2020.
3. Stocks, measured by the S&P 500, returned 29% in 2021, triple their 96-year average of 10%. Bonds lost 2% based on the U.S. Investment Grade (Bloomberg) Aggregate index, well below their 96-year average of 6%.
Read the full article here by Ron Surz, Advisor Perspectives
