Performance Review for Major Asset Classes
This unmanaged benchmark that holds all the major asset classes in market-value weights rose 5.0% last month.
Global markets posted sharp gains in October, clawing back most of September’s hefty losses. The revival was headed by equities, with US stocks leading the charge higher with a strong 7.9% total return via the Russell 3000 Index last month. Despite the broad-based gains at the kick-off to the fourth quarter, losses still dominate the year-to-date comparisons, along with a few instances of mild gains.
While there was a bullish wind blowing in October, there was a familiar exception. Broadly defined commodities once again dipped lower, albeit mildly so this time. Although the price for crude oil (NYSEARCA:USO) revived in October, the Bloomberg Commodity Index continued to slip, retreating by a comparatively modest 0.5% last month.
The broad gains overall lifted the Global Market Index (GMI) in October. This unmanaged benchmark that holds all the major asset classes in market-value weights rose 5.0% last month, its best monthly gain in five years. The bounce returned GMI to the positive column for the year-to-date return, but just barely. GMI is ahead by a weak 0.4% for 2015 through October’s close.
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The latest bounce strengthened GMI’s trailing 3-year total return too. The benchmark is higher by a respectable 6.7% annualized total return through last month, which is well above the long-term forecast for GMI, based on last month’s risk premia forecast.
