Israelsen: New Map of Performance
By: Craig L. Israelsen, Ph.D.
The world of finance could not function without tools for intepreting data. One such tool, the well-known Callan chart (known formally as the Periodic Table of Investment Returns by Callan Associates) offers an incredibly valuable visual depiction of the year-to-year performance of various asset classes.
It provides an easy-to-understand snapshot that makes a couple key points: Past performers seldom repeat in a logical pattern, and there is no discernable pattern that would allow an investor to pick the next year's winner.