Saturday , January 23 2021
Home / The Capital Spectator / Commodities Led A Wide-Ranging Rally In Asset Classes Last Week

Commodities Led A Wide-Ranging Rally In Asset Classes Last Week

Summary:
Broadly defined commodities rose for a third straight week for trading through Friday’s close (Nov. 20), posting the best gain for the major asset classes, based on a set of exchange traded funds.WisdomTree Continuous Commodity Index Fund (GCC), which tracks a broadly defined, equal-weighted measure of commodities, increased 2.2%. The gain left the fund at its highest close since January. Most of the broad cuts of the major asset classes participated in last week’s runup, with two notable exceptions: a wide-ranging measure of US equities and US-listed real estate investment trusts (REITs). Vanguard Total US Stock Market (VTI) was fractionally lower last week, effectively hanging on to the gain from a strong rally earlier in the month. US REITs, by contrast, posted a sharper loss.

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

This could be interesting, too:

Matt Sedlar writes Trump Has Quietly Hollowed Out the Government

James Picerno writes Asia ex-Japan Stocks Are Surging In 2021’s Kickoff

James Picerno writes Macro Briefing: 21 January 2021

James Picerno writes Recapping The Trump Years Through A Markets Lens

Broadly defined commodities rose for a third straight week for trading through Friday’s close (Nov. 20), posting the best gain for the major asset classes, based on a set of exchange traded funds.

WisdomTree Continuous Commodity Index Fund (GCC), which tracks a broadly defined, equal-weighted measure of commodities, increased 2.2%. The gain left the fund at its highest close since January.

Commodities Led A Wide-Ranging Rally In Asset Classes Last Week

Most of the broad cuts of the major asset classes participated in last week’s runup, with two notable exceptions: a wide-ranging measure of US equities and US-listed real estate investment trusts (REITs).

Vanguard Total US Stock Market (VTI) was fractionally lower last week, effectively hanging on to the gain from a strong rally earlier in the month. US REITs, by contrast, posted a sharper loss. Vanguard US Real Estate (VNQ) tumbled 0.9%, leaving the fund at the upper end of a trading range that’s prevailed since the summer.

The Global Markets Index (GMI.F) continued to rise last week. This unmanaged benchmark, which holds all the major asset classes (except cash) in market-value weights via ETFs, increased 0.6%, marking its third straight weekly gain.

Commodities Led A Wide-Ranging Rally In Asset Classes Last Week

For the one-year trend, US stocks are still in the lead for the major asset classes, although the edge is dwindling as equities in emerging markets continue to rally.

Vanguard Total US Stock Market (VTI) is up 18.1% on a total return basis for the trailing one-year window. A close second-place performance: Vanguard FTSE Emerging Stock Markets (VWO), which is up 16.6% from the year-ago level.


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


Foreign real estate continues to post the worst performance for the major asset classes for one-year results. Vanguard Global ex-US Real Estate (VNQI) has lost 6.6% over the past 12 months.

GMI.F continues to post a strong one-year gain, rising 12.8% through Friday’s close.

Commodities Led A Wide-Ranging Rally In Asset Classes Last Week

Ranking global markets by current drawdown still shows that broadly defined commodities (GCC) are posting the deepest peak-to-trough decline: in excess of -40%.

Meanwhile, several buckets of the global markets are posting virtually nil drawdowns, led by equities in emerging markets: VWO ended last week at a record close.

GMI.F’s current drawdown is a slight -0.4%.

Commodities Led A Wide-Ranging Rally In Asset Classes Last Week


How is recession risk evolving? 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 *