Global Asset Class Performance Chart (Oct 26-Oct 31)

Here is last week’s performance of different major global financial markets:

As the chart above illustrates, this week’s global asset class returns were mostly negative. R2K tops the list, showing losses of 6.3%, followed by Naz, EMs Global Stocks, Crude, and S&P: 5.1%, 4.8%, 4.4%, 4.3% and 4.0%, respectively. Excluding greenback and US investment-graded bonds’ 0.8% and 0.1 percentage point gains, the rest of the investments came in red.

Having said that, significant improvements are still evident on the chart’s year-over-year asset class return basis. Despite this week’s 4.8% deterioration ; EMs continue to hold the top spot as the list’s asset class leader with over 60% in positive returns.

Looking at the chart’s positive progression is worth pointing out that while all the doom and gloomers succeeded eight months ago in scaring investors away from stocks and other alternative investments, many U.S. co.’s, through cost cutting and other well-calculated business strategies, were able to sell goods and services and earn profits. And what followed were higher stock prices across the board. Unfortunately, the majority of investors have not realized any returns as a consequence of that dynamic based on all the ‘expert’ predictions (remember calls like: the market may not bottom until the Dow hits 4K which should see a P/E x/ple near 6-7 and a dividend yield in the same area) of negative equity returns. Considering the fact the last several months have been a truly stellar period for stocks ; it’s safe to say that the definition of the word ‘expertise’, which reflects a high degree of skill in or knowledge of a certain subject/field, needs redefining. Either that, or the so-called ‘experts’ need to look at a different profession, one that is, they can be good at.

Graph: WSJ

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