Major Asset Classes October 2019 Performance Review
James Picerno | Nov 01, 2019 06:39AM ET
The old investing proverb that markets like to climb a wall of worry was reaffirmed in dramatic fashion last month. Indeed, all the major asset classes posted gains in October. In fact, the latest installment of across-the-board increases marks the third time so far this year that the crowd bid up prices in everything in a calendar month. (June also posted gains in every primary slice of the global markets.)
Leading the way higher last month: emerging markets stocks. The MSCI Emerging Markets Index surged 4.2% in October, it’s best monthly advance since June.
Non-US markets generally stole the show last month. The top-five performances in October were found beyond America’s shores.
The weakest performer: cash. The S&P US 0-3 Month T-Bill Index edged up 0.2% in October.
The perfect record for performance also applies to year-to-date results. Behold: everything is now enjoying a bullish tailwind in 2019 through October’s close. The top year-to-date performer: US real estate investment trusts (REITs). The MSCI REIT Index is ahead by a sizzling 28.6% on a total-return basis this year.
With no sign of red ink in the major asset classes in October (or in 2019 so far), it’s no surprise that the Global Market Index (GMI) is posting impressive results. This unmanaged benchmark that holds all the major asset classes (except cash) in market-value weights rose 2.0% last month and is ahead by a strong 16.3% year to date.
For a bit of perspective, consider trailing one-year results for GMI relative to US stocks and US bonds. GMI is up 12% over the past year (red line in chart below), or just behind US equities (NYSE:Russell 3000) and slightly ahead of US investment-grade fixed income (Bloomberg Aggregate US Bond Index). As broad-based trends for the usual suspects go, risk-takers are currently enjoying a bumper crop.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.