Here are the top three market themes affecting positioning and performance last month from some of our experts, including our CIOs (Chief Investment Officers) across Russell Investments.
The October Markets in Perspective reveals strategists’ expectations of market volatility when the Fed eventually raises interest rates.
Volatility returned, China weakness dominated markets, and a flight to safety resulted in a downer of a month.
July was generally positive across the board for broad asset classes, save for commodities and emerging markets. A balanced portfolio still shows positive returns for the month, YTD and 12 months ending July 31, 2015.
While June was negative across the board for broad asset classes, a stronger April and May led to positive returns for equities and commodities for the quarter.
Even with many asset classes down for the month, the benefits of diversification are still evident for the month and year-to-date through May.
The April 2015 Asset Class Dashboard shows a strong month for Non-U.S. equities – especially Emerging Markets. The divergence in returns may remind investors of the potential power of diversification, and the importance of sticking with asset classes that underperformed in prior periods.