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May was positive for equities. Commodities declined.
Asset Class Returns
Major Asset Class Returns for the month ending May 31, 2024
Source: Jackson Creek Investment Advisors; S&P Global
U.S. Large Cap and International Developed markets had the highest returns for the month ending May 31, 2024. U.S. Small cap was a close second.
Commodities were negative.
Cash yielded close to 0.5%, with short-term rates still above 5% (see below).
The table below depicts the same information as above and shows which representative security is used for each asset class.
Source: Jackson Creek Investment Advisors. Not intended to portray any specific portfolios
Major Asset Class Returns for the year ending May 31, 2024
Source: Jackson Creek Investment Advisors; S&P Global
Over the last 12 months, U.S. Large Cap returned 26%, leading major asset classes.
Fixed Income was the lone asset class with a negative return during the past year. This was due to the rise in yields.
U.S. Index Returns with Growth & Value Styles
Source: Jackson Creek Investment Advisors; S&P Global
Among major U.S. equity style indices, the Russell 1000 Growth Index performed best in May. The index rose 6.0%
The Russell Mid-Cap Index generated the lowest return (+1.1%).
Growth beat Value in the large and small cap universes. Value outperformed Growth within the mid-cap universe.
Interest Rates
Source: Jackson Creek Investment Advisors; S&P Global
The Treasury yield curve shifted lower along most maturities compared to the end of April.
Maturities greater than one year saw yields rise from one year ago.
The yield curve remains inverted between key maturities (see next chart).
Source: Jackson Creek Investment Advisors; S&P Global
The negative spread between the 2YR and 10YR Treasury yields widened from last month. This was a result of the 10YR yield declining greater than the 2YR yield.
The level of inversion measured by the 2/10 spread is half what it was a year ago.
Disclaimer - this is not to be construed as investment advice or a recommendation to buy or sell any security. This is not meant to be indicative of any specific portfolio returns. Please see full disclosure on main blog page.
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