This post first appeared on FloatingPath
A chart from Axioma shows global market risk and return profiles in developed and emerging markets over the last six months. Each nation’s bubble size corresponds with the size of its market.
One would assume that the bubbles would be sloping upwards, as higher returns require more risk. While that seems to be true of the developed markets, the emerging markets are much more scattered. China and Taiwan for example have both performed well given their reduced risk.
The smaller bubbles in the top right corner that are outliers are Greece and Ireland.
Equities did well last month as most market watchers have noted that Value outperformed growth. In his March Factor Performance report, Alex Botte of Venn by Two Sigma noted that March was a strong month for the global Equity factor, especially in developed markets. Q1 2021 hedge fund letters, conferences and more He said Europe Read More