Emerging Markets Continued Leading Major Asset Classes Higher In July
Stocks in emerging markets continued to lead the major asset classes in July’s performance horse race. This slice of the global shares delivered the strongest return for a second straight month.
The MSCI Emerging Markets Index rose a strong 8.9% last month on a net total-return basis, marking the fourth consecutive monthly gain for this corner of global shares. Emerging markets overall are still posting a slight loss on a year-to-date basis, but the hole dug by the coronavirus crash in March has effectively been filled as of July’s close.
Overall, July was a strong month for risk assets with all the major asset classes posting gains (including cash, which eked out a fractional 0.2% advance, based on the S&P US T-Bill 0-3 Month Index).
US equities were among the stronger performers last month. The Russell 3000 Index, a broad measure of American shares, rose 5.7% on total return basis. For 2020 to date, the index is up by a modest 2.0%.
Total Returns % Chart
The Global Market Index’s revival rolled on in July. This unmanaged benchmark (maintained by Capital
Spectator.com), which holds all the major asset classes (except cash) in market-value weights, rose 4.3% last month. The increase marks the fourth straight monthly advance for the benchmark. On a year-to-date basis, GMI is again in positive territory with a slight 0.8% total return.
For the trailing one-year window, GMI’s rally is considerably stronger, posting a 7.3% total return vs. the year-ago level. US stocks (Russell 3000) and US bonds (Bloomberg Aggregate Bond) are doing even better on a one-year basis through July’s close, rising 10.9% and 10.1%, respectively.
Wealth Indexes GMI Vs US Stock And Bond Markets