Asset Class Scoreboard: May 2024
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In May, most asset classes rebounded after the April decline.
US stocks led the way, with the S&P 500 posting an impressive +5.06% gain as corporate profits showed resilience. Real estate also recovered, with the IYR index rising 4.93% as falling mortgage rates restored demand. Participation in overseas stocks The rally rose +3.95%.
Bonds stabilized, with the Barclays Aggregate index rising +1.68% as yields fell from recent highs. Hedge funds captured the upside through more directional positioning, with the QAI index up 1.35%.
On the other hand, raw materials suffered from weakening manufacturing indicators, with the GSG index falling -1.44%. The managed futures strategy saw some gains, with the index down -1.99% as reversals in interest rates and commodities created headwinds.
Year-to-date, most asset classes are in positive territory, with US stocks leading the way at +11.30%. Commodities also recorded significant gains of +9.42% in 2019. Overall, international stocks rose +6.10%.
Real estate and bonds have remained in negative territory at -4.83% and -1.45%, respectively, this year as their valuations have come under pressure due to rising interest rates. Managed futures weathered the volatility well and returned +5.33% by tactically switching between long and short exposures.
As we head into June, it’s important to recognize our mixed background. On the one hand, a strong rebound in stocks and real estate in May could mean the worst of the interest rate correction is over. However, uncertainty remains high as bond markets expect more rate hikes in the coming months. This could potentially put pressure on valuations of interest-rate sensitive assets, and hedge funds could shift to more defensive positioning after a strong month.
Past performance is not indicative of future results.
Past performance is not indicative of future results.
Source: Managed Futures = SocGen CTA Index,
Cash = Annual interest rate equivalent to 13 U.S. T-Bill coupons/12, YTD is the sum of each month’s values;
Bonds = Vanguard Total Bond Market ETF (BND),
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF (QAI);
Commodity = iShares S&P GSCI Commodity Index Trust ETF (GSG);
Real Estate = iShares U.S. Real Estate ETF (IYR),
World stocks = iShares MSCI ACWI ex US ETF (ACWX),
US stocks = SPDR S&P 500 ETF (SPY).
All ETF performance data from YCharts
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Editor’s note: The summary bullet points for this article were selected by Seeking Alpha editors.
