Black Friday Sale! Save huge on InvestingProGet up to 60% off

Global Markets Post Poor Monthly Performance In September

Published 10/01/2021, 07:14 AM
Updated 07/09/2023, 06:31 AM
BCOM
-

Global markets suffered their broadest retreat in a year during September. The bullish exception: commodities, which delivered a solid gain last month. Cash, as usual these days, was flat. Otherwise, red ink dominated performances for the major asset classes last month.

Let’s begin with commodities, which rose 5.0% last month, based on the Bloomberg Commodity Index. The advance marked the strongest monthly gain since April. It’s fair to say it’s been a winning year in this corner: Commodities have scored gains in all but two calendar months during 2021. Year to date, commodities are up 29.1% — the top performer for the major asset classes.

The rest of the field (except cash) posted losses in September. Notably, US stocks and bonds lost ground, giving support to concerns that the historical diversification benefits of pairing the two asset classes is breaking down.

The steepest loss last month was in US real estate investment trusts (REITs). But the 5.5% decline for the MSCI REIT Index in September was overdue – the loss marked the first monthly setback since October 2020. Note, too, that on a year-to-date basis, MSCI REIT is still flying high via a 23% gain – second only to commodities so far in 2021.

Total Returns Table

Meantime, the Global Market Index (GMI) took a hit last month. This unmanaged benchmark (maintained by CapitalSpectator.com), which holds all the major asset classes (except cash) in market-value weights, slumped a hefty 3.5%. That’s the first monthly slide since January and the deepest since the coronavirus crash crushed markets in March 2020. Year to date, however, GMI is still posting a solid 8.1% gain — better than most of the major asset classes so far in 2021.

Reviewing GMI relative to US stocks and bonds continues to show a strong middling performance over the trailing one-year period. GMI earned roughly half of the gain posted by US stocks with substantially less risk over the past 12 months. US bonds, by contrast, are flat for the trailing 12-month window.

Wealth Indexes GMI Vs US Stock & Bond Markets

Latest comments

Loading next article…
Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.