When I did an analysis by the main investment component of the accounts (e.g cash and fixed income, stocks and stock options), I noticed there was a significant difference in returns depending on the type of investment. In addition, the order of returns by account flipped between 2007 and 2008 YTD. The analysis is shown in the table below.
|Returns By Year|
|Main Component of Account||2007 overall||2008 YTD|
|Cash and Fixed Income|
The results in the table were not unexpected. The surprise was that with asset diversification I could usually be happy with at least one segment of my investments, although it may be a different segment each year. Last year, we were very pleased with how well my company's stock options were performing. This year, I am very happy that we have a portion of our savings in cash and fixed income. Although I don't know which one, it is likely I will be pleased with returns of a segment at the end of 2008. Hopefully, that segment will also have a large positive gain :-)
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This is not financial or investment advice. Please consult a professional advisor.
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