The last week of February 2007 saw a “tiny” correction in the equity markets worldwide. I say “tiny” because my portfolio’s value is not impacted too negatively; in fact it still managed to eke out a 0.01% gain 🙂 for the month. Year-to-date-wise, the portfolio is up by 1.44%.
However, if we look at the performance of the individual asset classes, we can see much more volatility, as shown in the following figure. Asset classes which tumbled the most include emerging market equities, U.S. REITs and precious metal and mining equities. The relatively stability of the entire portfolio is testament to the benefits of proper asset class diversification.