The 3Q 2024 Callan Institute Periodic Table of Investment Returns
The Callan Periodic Table of Investment Returns, issued by Callan LLC, tracks returns for the past couple of years ending December 2023 and monthly through September 2024. This table pictorially represents the returns from most public asset classes available to investors and many are represented in Callan Family Office client portfolios.
The returns are ranked annually from best to worst. After a great 2023 for the markets, it’s been much of the same for the first three quarters of 2024.
A few observations worth noting:
- Large cap stocks continue to lead all asset classes again for the first three quarters of the year, generating a strong 22.1% return. What’s not obvious from this chart is that market participation has broadened, as large value outperformed large growth for the third quarter by 6%.
- All other parts of the equity markets also generated strong positive returns for the quarter and the first nine months of the year. In fact, for the third quarter, all other equity classes outperformed the large cap universe.
- The 10-year U.S. Treasury yield has drifted down from 4.34% at the beginning of the quarter to 3.8% at quarter end. This improved fixed income returns, and most parts of the credit markets are now generating positive returns in 2024.
- Many investors may be surprised to see the recent strength in real estate. U.S. REITs were the best performing asset class for the third quarter, up over 15%. This strength was likely driven by interest rate sensitivity and the Federal Reserve’s recent cut of 50 basis points to the Fed Funds rate.
This table conveys that no one asset class outperforms in every environment and highlights the importance of diversification.
If you missed our comprehensive third quarter investment review, you can read it here. If you’d like to discuss further, please reach out to your Callan Family Office team for additional information.
To download a PDF of the Callan LLC Periodic Table, please click here.
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