Mixed Results For Global Stock Markets
James Picerno | Apr 01, 2021 07:22AM ET
US real estate investment trusts (REITs) topped returns for the major asset classes in March, rising 4.4%. The gain follows a second-place rally in February for domestic property shares.
Overall, last month delivered mixed results for global markets. For example, US and foreign developed-market stocks posted solid gains, in contrast with a loss for shares in emerging markets.
Foreign investment-grade corporate bonds suffered the deepest slide in March. The FTSE Russell Non-$ Corporate Bond Index slumped 2.8%. The decline marks the third straight monthly loss for this slice of global fixed-income securities.
Rising interest rates are taking toll in nearly every bond market this year. A notable exception: US junk bonds. The iBoxx US Liquid High Yield Index edged higher again last month, posting its sixth consecutive monthly advance.
Otherwise, red ink continues to weigh on fixed income. The US investment-grade benchmark hasn’t escaped the selling: the Bloomberg US Aggregate Bond Index slumped for a third month in March, shedding 1.3%.
Year to date also reflects mixed results, ranging from the near-9% rally so far in 2021 for US REITs to a 6.4% drop in foreign developed-market government bonds.
The broad trend, however, remains positive for global assets, based on 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 1.8% in March, building on a 1.6% gain in February. Year to date, GMI is up 2.7%.
Comparing GMI’s performance over the past year relative to US stocks and bonds shows that equities remain the clear leader. The Russell 3000 US Stock Index is up nearly 63% vs. its year-ago level (including dividends). The unusually high one-year total return (for stocks and other markets) reflects the bounce from the coronavirus crash in March 2020. The favorable one-year comparison is also giving GMI an extraordinary (and temporary) boost into the performance stratosphere — nearly 39%. US investment-grade bonds, by contrast, are only fractionally higher over the past year, rising just 0.7% after factoring in distributions.
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.