Thursday , June 20 2019
Home / The Capital Spectator / Most Asset Classes Rebounded Last Week

Most Asset Classes Rebounded Last Week

Summary:
A powerful rally on Friday helped boost prices on a weekly basis for most markets around the world via a set of exchange-traded products. With the exception of US real estate investment trusts (REITs), all the major asset classes ended the trading week on January 4 with gains. Last week’s biggest gain was posted by stocks in foreign developed-market countries. Vanguard FTSE Developed Markets (VEA) surged 2.3%, marking a second weekly advance and the strongest since November. The only loser last week for the major asset classes: Vanguard Real Estate (VNQ). This REIT index fund slipped 0.1% for the trading week – the fourth straight decline on a weekly calendar basis. The latest dip leaves the ETF close to its lowest close since last May. Learn To Use R For Portfolio Analysis

Topics:
James Picerno considers the following as important: , , , , ,

This could be interesting, too:

Gregor Samsa writes When 50 Percent Of U.S. Households Were Insolvent

Gregor Samsa writes Doubtful ECB Can Prevent Recession – O. Blanchard

Gregor Samsa writes S&P500 Key Levels

Gregor Samsa writes Are Italian Mini-Bots Coming For You?

A powerful rally on Friday helped boost prices on a weekly basis for most markets around the world via a set of exchange-traded products. With the exception of US real estate investment trusts (REITs), all the major asset classes ended the trading week on January 4 with gains.

Last week’s biggest gain was posted by stocks in foreign developed-market countries. Vanguard FTSE Developed Markets (VEA) surged 2.3%, marking a second weekly advance and the strongest since November.

The only loser last week for the major asset classes: Vanguard Real Estate (VNQ). This REIT index fund slipped 0.1% for the trading week – the fourth straight decline on a weekly calendar basis. The latest dip leaves the ETF close to its lowest close since last May.


Learn To Use R For Portfolio Analysis
Quantitative Investment Portfolio Analytics In R:
An Introduction To R For Modeling Portfolio Risk and Return

By James Picerno


Last week’s upside bias flowed through to an ETF-based version of the Global Markets Index (GMI.F). This investable, unmanaged benchmark that holds all the major asset classes in market-value weights jumped 1.6% last week, the benchmark’s second straight weekly gain.

Most Asset Classes Rebounded Last Week

Despite last week’s powerful rallies, all but one of the major asset classes remain deep in the hole for the trailing one-year change. The lone exception: investment-grade bonds in the US. Vanguard Total Bond Market (BND) is ahead by 0.4% as of Friday’s close vs. the year-earlier price (after including distributions).

The rest of the field is posting losses for the one-year window. The biggest setback is in emerging-markets stocks: Vanguard FTSE Emerging Markets (VWO) has shed 15.9% over the past year.

By comparison, GMI.F’s one-year decline is a relatively middling -6.4%.

Most Asset Classes Rebounded Last Week

Reviewing the asset classes via current drawdown reveals that investment-grade US bonds are posting the smallest decline: BND’s peak-to-trough slide is a slight -0.3%.

By contrast, the biggest drawdown is in broadly defined commodities: iPath Bloomberg Commodity (DJP) has shed more than 50% relative to its previous peak.

GMI.F’s current drawdown: -10.1%.

Most Asset Classes Rebounded Last Week


Is Recession Risk Rising? Monitor the outlook with a subscription to:
The US Business Cycle Risk Report


James Picerno
James Picerno is a financial journalist who has been writing about finance and investment theory for more than twenty years. He writes for trade magazines read by financial professionals and financial advisers. Over the years, he’s written for the Wall Street Journal, Barron’s, Bloomberg Markets, Mutual Funds, Modern Maturity, Investment Advisor, Reuters, and his popular finance blog, The CapitalSpectator.

Leave a Reply

Your email address will not be published. Required fields are marked *