Chasing Hot Assets

Here are a couple of statistics from the US:-

CAGR           LARGE CAPS   REITS   INTERNATIONAL   COMMODITIES
1972-1979          5.1%             11.1%             10.5%                        22.1%
1980-1989         17.5%            15.6%             22.8%                        10.7%
1990-1999         18.2%              9.1%               7.3%                          3.9%
2000-2007           1.7%             16.3%               5.5%                        13.3%

We all know what happen in the US from 2008-2010, real estate crashed. The conclusion is that what is hot in the last decade may not be hot in this decade. No point chasing for the latest hot stuff based on past performance. Just periodly rebalanced your invested portfolio instead of moving in and out in huge quantites from one sector to another in search of higher profits.