Below is a snapshot of last week’s market performance and what to watch in the week ahead from Chadd Mason, Cabana CEO and co-founder.
U.S and international equity markets continue to take a drubbing. Since October 1, 2018 the S&P 500 is down almost 13%, the Nasdaq is down 16% and the ACWI world equity index is down 12.3%. All major equity indexes worldwide are under water for the year. As of this writing, the S&P 500 breached the February low, recovering at the Dec. 17 close to end right at that support level. Many market technicians have expected a retest of these levels and believe that the market’s ability to hold and recover will decide once and for all whether the nine-year-old bull market is over and a bear market for stocks has begun. I happen to be in this same camp. While earnings and unemployment numbers remain positive, it rarely pays to argue with price. Right now, price is flashing a huge red warning sign. While we wait for clarity, I did some research on just how difficult 2018 has been for all types of investors. I commented on this in a blog last week, pointing out that this has been the worst year since Nixon was in office when considering performance across all asset classes.
The following is the year-to-date returns for major asset classes:
- Energy: -17%
- Gold: -5.8%
- Commodities: -8.5%
- Long Treasury Bonds: -5.8%
- Corporate Grade Bonds: -7.1%
- Real Estate: -5.2%
- Small Cap U.S. Equities: -11%
- Emerging Market Equities: -17.8%
- Developed Market Equities: -9.8%
- U.S. Total Market Equities: -5.8%
That, my friends, is a tough year for investors of all types.
Download a PDF of this week’s market commentary at the following link: Weekly Market Commentary December 17 2018
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