Current status of diversification

Here are the 1-year trailing returns for various asset classes according to Morningstar:

Bloomberg Commodity 9.16%

LBMA Gold Price PM 34.59%

Morningstar Global Core Bond GR 2.17%

Morningstar US 5-10 Year Treasury Bond 3.09%

Morningstar US 10+ Year Treasury Bond -5.85%

Morningstar US Cash T-Bill 4.63%

Morningstar US Core Bond 2.61%

Morningstar US HY Bond 8.18%

Morningstar US Market 16.79%

Morningstar US REIT -1.17%

Morningstar US Small Cap 10.85%

A portfolio which contained an equally weighted amount of each of the above would show a gain of 7.7%. Without gold it would be 4.6%.

According to the article “gold now ranks as the top-performing major asset class over the trailing 20-year period through Aug. 27, 2025, with annualized returns of 10.7%. It also ranks at the top over most other trailing periods….. Academic researchers Campbell Harvey and Claude Erb have found that, over time, gold prices tend to revert to the mean….  it’s probably not the ideal time to buy gold when it’s already trading near an all-time high.  ”

The above from the article “Can the Gold Rush Continue” dated 9/2/2025

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