Source : Morningstar Bonds AND Stocks: Why Correlations Matter! There is an old saying that hindsight is 20/20. That saying has never been more true than when looking at the past results for an investment strategy. I often joke with one of my meteorological friends that if they ever get sacked for making a bad weather forecast, they would be welcomed with open arms into the investment world. That is because it is SO difficult to predict when one asset class (or strategy) will outperform another. Hence the usual disclaimer: "Past performance is no guarantee of future results." So, what is an investor to do? Sit on the sidelines in cash? While that may be a viable strategy for a short period of time, it would have been devastating to your wealth if you had pursued that strategy (shown above in black and labeled Strategy F) over the last 90+ years. “A ship is safe in harbor but that’s not what ships are for.” – William Shedd While Strategy F would have never really "lost&qu