Despite Trump’s first real test in the markets on last month’s failed push to pass new healthcare reform, U.S. stocks are up 6.03% on the year. World Stocks continue to outpace U.S. stocks as we push into the second quarter of 2017, while the rest of the field of asset classes remain positive on the year. It is worth noting, that while we don’t include this sector in the asset class scoreboard, the MSCI Emerging Market ETF $EEM is currently sitting up 11.31% on the year, with $6.63 Billion in new inflows on the year.
Managed Futures published its first positive quarter since last summer, capturing some of the long stock futures index moves, some good trends in the meats markets, and moves in the grain markets at the end of the quarter. Meanwhile, long only commodities are showing their fickle nature. Hopefully the $33 Billion in new money know what they’re getting into with commodities being a bad long term bet.
For now, it looks like investors are trying to cash in on the “hot market.” Just as long they can stomach the volatility that goes along with those kind of markets.
Source: All ETF performance data from Morningstar.com
Sources: Managed Futures = SocGen CTA Index, Cash = 13 week T-Bill rate,
Bonds = Vanguard Total Bond Market ETF (BND),
Hedge Funds= IQ Hedge Multi-Strategy (QAI)
Commodities = iShares GSCI ETF (GSG);
Real Estate = iShares DJ Real Estate ETF (IYR);
World Stocks = iShares MSCI ACWI ex US Index Fund ETF (ACWX);
US Stocks = SPDR S&P 500 ETF (SPY)
