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Major Asset Classes | May 2020 | Performance Review

Summary:
Asset prices continued to rebound in May, building on April’s widespread gains. Commodities joined the party this time by leading the across-the-board celebration in global markets last month. Bloomberg Commodity Index surged 11.1% in May — the benchmark’s biggest monthly increase in a decade. Crude oil was the main driver with a dramatic 87.5% rise after a hefty decline over the previous two months. US stocks were in second place in May, albeit distantly with a 5.4% gain via the Russell 3000 Index. The solid advance marks the second monthly increase following back-to-back losses for American equities in the first three months of the year. Learn To Use R For Portfolio Analysis Quantitative Investment Portfolio Analytics In R: An Introduction To R For Modeling Portfolio Risk and

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Asset prices continued to rebound in May, building on April’s widespread gains. Commodities joined the party this time by leading the across-the-board celebration in global markets last month.

Bloomberg Commodity Index surged 11.1% in May — the benchmark’s biggest monthly increase in a decade. Crude oil was the main driver with a dramatic 87.5% rise after a hefty decline over the previous two months.

US stocks were in second place in May, albeit distantly with a 5.4% gain via the Russell 3000 Index. The solid advance marks the second monthly increase following back-to-back losses for American equities in the first three months of the year.


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By James Picerno


Every corner of the major asset classes rose in May, but thanks to the revival of a risk-on climate the weakest performance last month was cash. The S&P US T-Bill 0-3 Month Index ticked higher, just barely, with a 0.01% gain.

For the year to date, however, losses still prevail. The only exceptions: US and foreign investment-grade bonds, inflation-linked Treasuries and cash.

Major Asset Classes | May 2020 | Performance Review

The Global Markets Index (GMI) posted a second straight monthly gain in May. GMI, an unmanaged benchmark (maintained by CapitalSpectator.com) that holds all the major asset classes (except cash) in market-value weights, rose 3.5%. For the year so far, however, GMI remains underwater by 5.4%, courtesy of steep losses in the first quarter that continue to linger.

For the trailing one-year window, the trend looks brighter for GMI, which is up 6.3%. US investment-grade bonds earned even more over the last 12 months and US stocks (Russell 3000) are higher by nearly 12% vs. the year-ago level after including dividends.

Major Asset Classes | May 2020 | Performance Review


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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.

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