Here you can see the performance of large U.S. stocks along with the detailed performance of all the investments included in the Everything Else group. As the graphs show, there are long periods of time when large U.S. stocks perform meaningfully better than all of the other investments…Everything Else then followed by long periods when the opposite is the case.
1972 – 1979: this is the earliest period that we have data. It is a time when the performance of large U.S. stocks lagged behind Everything Else.
1980 – 1999: this is the bull market of the ‘80s and ‘90s which was one of the best ever. Large U.S. stocks performed better than every other investment, everything in the Everything Else group, by a large margin. This was most pronounced in the late ‘90s with nearly a frenzy environment.
2000 – 2009: this is commonly referred to as “The Lost Decade” due to large U.S. stocks producing a near 0% return for a decade. Again, this is an extended period of time when the performance of Everything Else did well while large U.S. did not.