Major Asset Classes: June 2022 Performance Review

Jul. 01, 2022 9:15 AM ETSHV, BND, TIP, VWO, EMLC, BWX, PICB, WIP, VNQ, VNQI, IHY, JNK, GSG, VTI, VEA, SPY, USO, GLD, UUP4 Comments5 Likes
James Picerno profile picture
James Picerno
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Summary

  • Losses weighed on every slice of the major asset classes, based on a set of proxy ETFs.
  • US stocks suffered nearly as much, and for 2022, the loss in American shares exceeds 21%.
  • The Global Market Index continued to lose ground in June.

Boxes of financial products e.g REITs, bonds, commodities, mutual funds, stocks, ETFs on a laptop

William_Potter/iStock via Getty Images

As risk-off messages go, the markets couldn’t be any clearer in June. Losses weighed on every slice of the major asset classes, based on a set of proxy ETFs. Even cash took a hit, albeit a fractional one.

Selling took a toll far and wide last month, with the foreign stocks in developed markets falling the most. Vanguard Developed Markets (VEA) lost 9.2% in June, leaving it in the red by nearly 19% year to date.

US stocks (VTI) suffered nearly as much, and for 2022, the loss in American shares exceeds 21%. US bonds (BND) are nursing lesser losses, but by fixed-income standards, it’s fair to say that everyone’s favorite safe haven looks decidedly risky this year via a 10.3% year-to-date decline.

Total returns percentage - Asset classes ranked by 1 month % total return

The Global Market Index (GMI) continued to lose ground in June. This unmanaged benchmark (maintained by CapitalSpectator.com), which holds all the major asset classes (except cash) in market-value weights, tumbled 7.1% last month and lost 18.9% year to date.

Comparing GMI’s performance to US stocks and bonds over the past year highlights that bonds (BND) are providing some ballast recently, at least in relative terms - an attribute that previously had been in short supply for 2022.

Wealth Indexes: GMI vs. US Stock & Bond Markets

Original Post

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

This article was written by

James Picerno profile picture
5.63K Followers
James Picerno is a financial journalist who has been writing about finance and investment theory for more than twenty years. He writes for trade magazines read by financial professionals and financial advisers. Over the years, he’s written for the Wall Street Journal, Barron’s, Bloomberg Markets, Mutual Funds, Modern Maturity, Investment Advisor, Reuters, and his popular finance blog, The CapitalSpectator. Visit: The Capital Spectator (www.capitalspectator.com)
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