Commodities and emerging market equities outperformed. Commodities did well due to investor demand, a weaker Dollar, and the continuing emerging markets growth story. U.S. equities performed better than many expected, beating developed international equities and the broad bond market. Source: Standard & Poor’s, Barclays Capital, MSCI, Reuters/CRB, J.P. Morgan Asset Management Tweet
Tag Archives: Asset Classes
Falling Dollar Fuels Returns on Foreign Assets
Many variables can fuel the performance of commodities and international stocks. Over the past 10 years, according to JP Morgan, a 1% drop in the Dollar has been associated with a 1.4% increase in Dollar-denominated commodity returns (CRB), and a 2.4% increase in international stocks (Dollar-denominated MSCI ACWI Ex-US). If Fed purchases and/or slow U.S. [...]
Interest Rates…How Low Can You Go?
This chart shows the yield of the 10-year U.S. Treasury from 09/30/1980 through 09/30 of this year. It is split by 10-year intervals showing the annualized return due to a decline in rates. But, rates cannot fall below zero. It may be a good time to evaluate fixed income allocations. Source: J.P. Morgan Tweet
Gold Prices Have Spiked Before
With economic and market uncertainty on the mind of investors, gold prices have rallied from $450 to over $1,300 in the last 5 years. But, unlike most commodities, gold has no true economic value beyond niche products such as jewelry, therefore the driver in its price is what the next person is willing to pay [...]
Going with the “Flows”
Source: J.P. Morgan Asset Management Tweet
U.S. Money Market Flows
Source: Morningstar Tweet
Do hedge funds hedge?
…the experience of the Great Recession Source: Vanguard | 06/03/2010 The recent Great Recession provides a unique opportunity to examine the experience of hedge fund investors. Many investors believe that hedge fund managers have the flexibility to avoid the disastrous consequences of extreme market events. However, during the turmoil of the past few years, [...]