The surprise – and impact – of rising interest rates, falling oil prices and relative strength of the U.S. Dollar in 2014 were good reminders for investors that it can be very difficult to anticipate what is coming next for the markets and economy.
The divergence of asset class returns can be a good reminder for investors of the benefits of diversification.
Developed market equities (Russell 3000® Index and Russell Developed ex-U.S. Large Cap Index) and U.S. fixed income (Barclays U.S. Aggregate Bond Index) held up in November 2014 even as central banks in the U.S., Europe and China were making changes to their policies.
October 2014 was a good reminder of the challenges of trying to perfectly anticipate market sell-offs and rebounds.
September was a tough market environment, with all major asset classes posting negative returns for the month. Considering the events of September and the third quarter overall, this is not that surprising.
After the U.S. equity sell-off in July, asset classes ended August on a strong note – providing a good reminder of the challenges of precisely anticipating market declines and rebounds.
The latest Asset Class Dashboard update highlights three key points that might be useful in your next client meeting.