Chart of the Day - Monday, October 28th, 2019
October 28, 2019
Today’s Chart of the Day was shared on Twitter by @EconomPic. The chart compares the growth of $1 using three different investment strategies since 1970. The grey line is a traditional 60/40, stock/bond portfolio. The orange line is the MSCI World Index pre-1988 and $ACWI post-1988. The blue line represents buying global stocks if they close the month at all-time highs, and if they're not at all-time highs, buying bonds instead. The chart provides a good illustration of the power of trend-following and is evidence that investors shouldn't be afraid of the market hitting new all-time highs.