Quarterly Market Overview

Major asset classes were mixed

2Q-2024 Asset Class Returns Based on Broad ETFs

Major Asset Class Returns for the three months ending June 30, 2024

• Global asset classes had mixed results in the June quarter.

• Emerging Markets along with U.S. Large Cap stocks were the leading asset classes.

• U.S. Mid & Small Cap stocks were the laggards as they both declined about 3.3%.

• Real Estate & Commodities were slightly positive; International Developed Markets had a small negative return.

• Fixed Income was essentially flat after declining early in the quarter and rebounding during the latter half.

The table below depicts the same information as the above bar chart but shows the ETF securities used to represent each asset class.

Major Asset Class Returns for the Twelve (12) Months Ending June 30, 2024

• In the twelve months ending June 30th, U.S. Large Cap stocks gained 24.5%, handily beating other major asset classes during the period.

• Commodities had the second-highest return over the last twelve months with a 13.6% gain.

• Fixed Income gained 2.6% and Real Estate rose 7.7%

U.S. Index Returns with Growth & Value Styles

• Large Growth was the predominant theme in the domestic equity markets.

• The Russell 1000 Growth Index gained 8.3%, more than double the return of the next best performing index - the Russell 1000.

• Most other styles declined about 3.0% to 3.5% in the quarter. The Russell 1000 Value Index declined 2.2%.

---

Interest Rates

U.S. Treasury Yield Curves

• The Treasury yield curve shifted upward across all maturities greater than six months since the end of March.

• The yield curve flattened compared to the of last June. Longer-dated maturities rose while shorter-dated yields mostly declined.

• The 1M Treasury yield ended at 5.5%.

Spread between 10Y & 2Y U.S. Treasury

• The level of curve inversion, measured by the difference in the 2YR & 10YR yields, declined from last quarter.

• The 2/10 spread was negative 35 basis points (-0.35%) compared to -0.39% at the end of March and -1.06% 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.