Charts of the Week
Capital Markets Review (As Of 06/30/2016)
Chart of the Week for July 8, 2016 - July 14, 2016
Capital market returns were generally positive in the second quarter of 2016 for the asset classes shown above, with the exception of International Developed Market Stocks which were negative. Over the trailing 1-year period, U.S. Bonds, U.S. High Yield Bonds, and U.S. Large-Cap Stocks provided positive returns while International Developed Market Stocks, Emerging Market Stocks, and U.S. Small-Cap stocks all had negative returns. Over the trailing 5-year period, all asset classes shown had positive returns except Emerging Market Stocks, and over the trailing 10-year period, all asset classes had positive returns.
For the second quarter of 2016, U.S. markets outperformed global markets in U.S. dollar terms. One of the biggest economic stories of the quarter was the vote by the United Kingdom to leave the European Union. While the Brexit vote occurred late in the quarter, it created uncertainty and International Developed Market Stocks finished with a negative return of -1.46%. For domestic returns, U.S. High Yield Bonds had the best return at 5.52%, as the recovery in oil prices helped many issuers of high yield bonds. U.S. Small-Cap Stocks returned 3.79%, U.S. Large-Cap Stocks returned 2.46%, and U.S. Bonds returned 2.21%, as U.S. economic data was generally positive during the quarter. The U.S. Federal Reserve left its short term interest rate target range unchanged, but longer term interest rates fell during the quarter, helping bond returns.
In the chart above:
* U.S. Bonds are represented by the Barclays U.S. Aggregate Bond Index.
* U.S. High Yield Bonds are represented by the Barclays U.S. Corporate High Yield Index.
* U.S. Large-Cap Stocks are represented by the S&P 500 Index.
* U.S. Small-Cap Stocks are represented by the Russell 2000 Index.
* International Developed Market Stocks are represented by the MSCI EAFE (Net) Index.
* Emerging Market Stocks are represented by the MSCI Emerging Markets (Net) Index.
Posted by: sarah_oz@yahoo.com
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