SPY - Asset Class Scoreboard: October 2023
2023-11-08 22:05:00 ET
Summary
- October’s performance results underscored the challenging economic shrinking in the current economy.
- With inflation persisting and the central bank’s aggressive rate hike, most asset classes suffered declines against this uncertain backdrop, closing this 3rd quarter.
- Commodities retreated -3.91% as recessionary concerns weighed on industrial materials and energy prices from their summer highs.
October’s performance results underscored the challenging economic shrinking in the current economy. With inflation persisting and the central bank’s aggressive rate hike, most asset classes suffered declines against this uncertain backdrop, closing this 3rd quarter.
Commodities retreated -3.91% as recessionary concerns weighed on industrial materials and energy prices from their summer highs. Equities also corrected, with the S&P 500 dropping -2.17 % while the MSCI ACWI declined -3.13% on continued inflation worries. Real estate reflected rate sensitivity, falling -3.60%.
Fixed income also faced headwinds, as the Bloomberg Aggregate Bond index lost -1.52% amid rapidly rising treasury yields. Hedge funds underperformed broader markets with a loss of -1.23%, though managed futures outperformed modestly with a shallower decline of -0.38% through risk management.
Cash held its ground, gaining +0.46% in line with interest rate hikes. Overall, October highlighted the fragility in risk assets given unstable macro developments.
Looking ahead, diversified strategies that can adapt positions across asset classes may prove advantageous as uncertainty persists over the trajectory of inflation and policy response.
Continued volatility can be expected in the coming months as these macro challenges play out.
Past performance is not indicative of future results.
Past performance is not indicative of future results.
Sources:
Managed Futures = SocGen CTA Index
Cash = US T-Bill 13 week coupon equivalent annual rate/12, with YTD the sum of each month’s value
Bonds = Vanguard Total Bond Market ETF ( BND )
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF ( QAI )
Commodities = iShares S&P GSCI Commodity-Indexed Trust ETF ( GSG )
Real Estate = iShares U.S. Real Estate ETF ( IYR )
World Stocks = iShares MSCI ACWI ex-U.S. ETF ( ACWX )
US Stocks = SPDR S&P 500 ETF ( SPY )
All ETF performance data from Y Charts
Disclaimer
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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
For further details see:
Asset Class Scoreboard: October 2023