Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Every Major Asset Class Ended March Lower. Is It Over?

By James PicernoMarket OverviewApr 01, 2020 07:56AM ET
www.investing.com/analysis/major-asset-classes--march-2020--performance-review-200520261
Every Major Asset Class Ended March Lower. Is It Over?
By James Picerno   |  Apr 01, 2020 07:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The value of cash as an asset class had its moment in the sun in March as coronavirus blowback cut deeply into markets around the world. Posting the only gain among the major asset classes in last month’s tsunami of losses, the S&P US T-Bill 0-3 Month Index exemplified its role as a port in the storm with a 0.2% gain. Par for the course for cash returns of late, but oh-so-welcome in an otherwise miserable month for risk assets.

Beyond cash, red ink infected every corner of the major asset classes, ranging from the relatively mild 0.6% loss in March for US investment grade bonds (Bloomberg US Aggregate Bond Index) to the deep 21.6 crash in US real estate investment trusts (MSCI REIT Index)–the sector’s biggest monthly decline since the 2008-2009 financial crisis.

In the wake of last month’s thrashing, losses have spread to longer-term windows. For trailing one-year results, for instance, only cash and a select group of bonds are posting gains.

US stocks certainly took a hit last month: the Russell 3000 Index tumbled 13.8% in March—its deepest monthly slide in a dozen years.

Total Returns Table
Total Returns Table

The main question investors are asking: Is it over? Don’t count on it, warns DoubleLine Capital Chief Investment Officer Jeffrey Gundlach. “I think we’re going to get something that resembles that panicky feeling again during the month of April,” he predicts.

As for bottom-fishing for beaten-down assets, Oaktree Capital co-chairman Howard Marks says “things have gotten cheap enough” to start nibbling. “I personally think that securities are low enough to buy a little. Somebody said to me, ‘is this the time to buy?’ I say no, ‘this is a time to buy,’” emphasizing that with uncertainty surging a strong dose of time diversification (don’t concentrate purchases on any one date) is warranted for the simple reason that no one knows where the bottom is.

There was no sign of a bottom last month for the Global Markets Index (GMI), an unmanaged benchmark (maintained by CapitalSpectator.com) that holds all the major asset classes (except cash) in market-value weights. GMI fell a hefty 10.1% in March—the benchmark’s biggest monthly decline since 2008.

For the trailing one-year return, GMI is down 6.2%, a modestly softer decline vs. US stocks, which fell 9.1% over the past year via the Russell 3000 Index. US bonds, by comparison, are up 8.9% for the year through last month’s close, based on the Bloomberg Aggregate Bond Index.

Wealth Indexes GMI Vs US Stock & Bond Markets
Indexes GMI Vs US Stock & Bond Markets

Every Major Asset Class Ended March Lower. Is It Over?
 

Related Articles

Every Major Asset Class Ended March Lower. Is It Over?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email