Weekly Snippet

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June 7, 2019
Weekly Snippet

Last Week…

…A nasty bout of fear hit investors as illustrated in the graph below.

As you can see Equities, with the exception of Emerging Markets, were down from the previous week.  And Bonds, with exception of High Yield Bonds, were up.  This is a classic example of a flight to “safety”.  All U.S. equities were down over nearly 2.5%, with Small Cap Value taking the largest hit—losing close to 4%.  U.S. REITS, Global REITS and Commodities took a smaller hit down 1-1.5%.  Foreign markets also slipped, but less than 2.5%. May was quite the volatile month for Equities, but all Equity asset classes STILL remain positive YTD.

Now let’s talk about Bonds.  Their continuous slow simmer this year is starting to pay off.  Even with High Yield Bonds down from the previous week, YTD returns are close to 7.5%.  Emerging Market Bonds are close to 6.5%.  U.S. Intermediate Term Treasuries and TIPS are both moving towards 5.5% YTD.  If you compare these YTD returns to the Annual return for 2018, these were the bonds that were down the most.  And here they are bouncing back.

One thing is for sure, there is a lot of uncertainty in the market at the moment.  We speculate last week’s end of the week volatility was brought on by the Mexico Tariff announcement.  Although, if you have watched the market since, it seems to have absorbed the news and moved on…but more on that next week!

Have a great weekend!

Indexes are listed in respective order to their reference above: DJ Industrial Average TR USD, S&P 500 TR, DJ US TSM Large Cap Growth TR USD, NASDAQ 100, Technology NTTR TR USD, DJ US Health Care TR USD, DJ US TSM Large Cap Value TR USD, DJ US TSM Mid Cap Growth TR USD, DJ US TSM Mid Cap Value TR USD, DJ US TSM Small Cap Growth TR USD, DJ US TSM Small Cap Value TR USD, FTSE NAREIT All Equity REITs TR, DJ Gbl Ex US Select REIT TR USD, Bloomberg Commodity TR USD, MSCI EAFE NR USD, MSCI EAFE Growth NR USD, MSCI EAFE Value NR USD, MSCI EAFE Small Cap NR USD, MSCI EM NR USD, BBgBarc US Corporate High Yield TR USD, FTSE WGBI NonUSD USD, JPM EMBI Plus TR USD, BBgBarc US Govt 1-3 Yr TR USD, ICE BoafAML 1-3Y US Corp TR USD, BBgBarc Intermediate Treasury TR USD, BBgBarc Interm Corp TR, BBgBarc US Treasury US TIPS TR USD. These materials have been prepared solely for informational purposes based upon data generally available to the public from sources believed to be reliable. All performance references are to benchmark indexes. Performance of specific funds will vary from respective benchmarks. Past performance is not an assurance of future results. Each index cited is provided to illustrate market trends for various asset classes. It is not possible to invest directly in an index. Neither do Indexes reflect individual investor costs, e.g. trading, expense ratios & potential advisory fees.