If you were hoping for some different market moves in 2017, better luck next month. It was more of the same in January, with the DJIA finally limping over the 20,000 mark and world stocks posting a +3.51% return (here’s the countries that make up “world stocks.”
Meanwhile, Bonds, Real Estate, Hedge Funds, squeaked out a positive return, but all under 40 basis points. Long-Only Commodities, meanwhile, with most of its performance tied to the crude market, ended down -3.17% on the month.
Cash is starting to become a little interesting on the heels of the Fed raising rates in December, and we could see cash make real returns for the first time almost a decade if Yellen continues to raise rates.
Finally, Managed Futures lost 54 basis points, with traditional systematic trend following programs struggling to capture on trends that still have not formed. But based on the managers we work with, we have seen non-traditional strategies like relative value and volatility strategies do quite well.
For what we expect for the rest of 2017, be on the lookout for out Managed Futures 2017 Outlook whitepaper in the coming days.
Source: All ETF performance data from Morningstar.com
Sources: Managed Futures = SG CTA Index, Cash = 13 week T-Bill rate,
Bonds = Vanguard Total Bond Market ETF (BND),
Hedge Funds= IQ Hedge Multi-Strategy (QAI)
Commodities = iShares GSCI ETF (GSG);
Real Estate = iShares DJ Real Estate ETF (IYR);
World Stocks = iShares MSCI ACWI ex US Index Fund ETF (ACWX);
US Stocks = SPDR S&P 500 ETF (SPY)
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.
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