14 of 17 major asset classes have posted negative inflation-adjusted real returns thus far in 2018, as reported by Morgan Stanley and Bloomberg. That’s pretty scary! Pretty much, only U.S. stocks have fared well, while most other asset classes have lost ground. Nevertheless, the mantra of diversification still holds true as one asset class may “zig,” while the other may “zag;” thereby providing a level of risk reduction to your portfolio. Click on the link above and see below to ascertain how your asset classes fared!
Worst Real Returns Since Financial Crisis: A Look at 17 Asset Classes
Winners
S&P 500 Index (SPX)
Russell 2000 Index (RUT)
U.S. high yield corporate debt
Losers
2-Year U.S. Treasury Note
10-Year U.S. Treasury Note
U.S. investment grade corporate debt
Global high yield corporate debt
Inflation-protected bonds
U.S. Aggregate Bond Index
Emerging market U.S. dollar government debt
Emerging market local debt
REITs
MSCI Europe Index
MSCI Japan Index
MSCI China Index
MSCI Emerging Markets Index
Commodities
Sources: Morgan Stanley, Bloomberg; Annualized, unhedged inflation-adjusted real returns in U.S. dollar terms computed YTD as of Sept. 24.
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