Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Major Asset Classes Move Into The Red

By James PicernoStock MarketsJul 01, 2021 04:35PM ET
www.investing.com/analysis/major-asset-classes-move-into-the-red-200589299
Major Asset Classes Move Into The Red
By James Picerno   |  Jul 01, 2021 04:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

After two straight months of across-the-board gains for the major asset classes, red ink returned in June.

Roughly half of asset classes rose and half fell last month. Among the gainers, US real estate investment trusts (REITs) led the way. MSCI US REIT Index rallied 2.7% in June, which marks an impressive run of eight consecutive monthly increases.

Last month’s losers were concentrated in foreign bonds (in unhedged US dollar terms). The deepest shade of red ink: foreign government inflation-indexed bonds. The Non-$ FTSE Russell Inflation-Linked Securities Index retreated a steep 2.6% in June. The decline appears to be a degree of payback after the index’s stellar rise in May, which reflected the strongest monthly performance for the major asset classes.

So far in 2021, US REITs and commodities stand out as performance leaders. MSCI US REIT Index is up nearly 22% year to date closely followed by a 21.2% return for the Bloomberg Commodity Index.

US stocks continued to rally last month. The Russell 2000 Index jumped 2.5% in June, the fifth straight monthly advance. The rebound in US bonds remained alive last month, too, as the Bloomberg US Aggregate Bond Index rose for a third month.

The mostly upside trend for risk assets continued to lift the Global Market Index (GMI). This unmanaged benchmark (maintained by CapitalSpectator.com), which holds all the major asset classes (except cash) in market-value weights, rose 0.9% in June, the fifth straight monthly increase for the benchmark. Year to date, GMI is up a strong 8.7%.

Comparing GMI to US stocks and bonds shows that global asset allocation remains competitive this year, generating relatively high returns while offering a degree of risk management through broad diversification. GMI’s 28.6% return for the trailing one-year window is far above the essentially flat performance of US bonds over the span. Meantime, GMI’s trailing one-year gain earned nearly two-thirds of the one-year increase for US equities – an impressive run when you consider that GMI passively owns all the world’s major asset classes.

Major Asset Classes Move Into The Red
 

Related Articles

Tim Knight
Looming Ceilings For Some ETFs By Tim Knight - May 27, 2022 3

Ever since last week, the market has been slicing the heads off bears left and right, with the Dow up thousandsof points and the S&P 500 Futures up about 300. It’s been...

Major Asset Classes Move Into The Red

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.
Comments (2)
ken K fame
ken K fame Jul 01, 2021 7:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good day sir
Restilow Morgan
Restilow Morgan Jul 01, 2021 12:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
 
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
Continue with Google
or
Sign up with Email