Asset Class Review for the Week Ending 6/19/20

Posted on June 19, 2020 by Gemmer Asset

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Equities started the day in the green, but steadily lost ground throughout the trading session. Despite today’s slip up, most asset classes finished the week with a positive return.

 

 

Below is a brief weekly recap of  the major asset classes.

 

Equities

 

NASDAQ

 

The NASDAQ led the pack this week thanks in part to stocks like Microsoft, Amazon, Apple and Facebook.

 

 

Because these 4 stocks make up about one-third of the index, they often dictate the NASDAQ’s performance from week to week – for better or worse.

 

S&P 500

 

Also benefiting from the above 4 stocks was the S&P 500. It was up +1.9% this week and has bounced +39% since it’s low on March 23rd.

 

Here’s a look at the sectors that drove the S&P’s performance over the last 5 days:

 

 

As has been the case for much of the recovery, Tech and Healthcare were the winning sectors.

 

US Small Cap

 

US Small Cap stocks continued their impressive recovery (up +2.3% this week) and despite a couple hiccups, over the past few months it’s been a steady climb higher – up +43% since it’s bottom on March 18th. This bounce has been the best of the major equity indexes (Small Cap in red):

 

 

International Equities

 

Developed international and emerging market stocks were up +1% and +0.7%, respectively – lagging the US, but still positive. Here’s a look at the performance breakdown of the top 5 countries held in the MSCI All Cap World ex-US Index (ranked by return, not weighting):

 

 

Bonds

 

High Quality Fixed Income

 

Treasury maturities experienced a slight drop in yield during the week, with the long end of the curve being the lone exception.

 

 

As you’d expect, high quality short and intermediate-term bonds squeezed out a positive weekly total return, while long-term treasuries were basically flat.

 

High Yield Bonds

 

Benefiting from their positive correlation to equities, high yield bonds had a decent week – gaining +0.53%. The asset class has undoubtedly been supported by the Fed’s plan to buy corporate bonds. On a total return basis, the iShares iBOXX High Yield Corporate Bond ETF (HYG) is up +23% since March 23rd.

 

 

Enjoy the weekend.

 

 

 

 

Published by Gemmer Asset Management LLC The material presented (including all charts, graphs and statistics) is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The material is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal recommendation or take into account the particular investment objective, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this material is suitable for their particular circumstances and, if appropriate, see professional advice, including tax advice. The price and value of investments referred to in this material and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or prices of, or income derive from, certain investments. No part of this material may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Gemmer Asset Management LLC (GAM). Any mutual fund performance presented in this material are used to illustrate opportunities within a diversified portfolio and do not represent the only mutual funds used in actual client portfolios. Any allocation models or statistics in this material are subject to change. GAM may change the funds utilized and/or the percentage weightings due to various circumstances. Please contact GAM, your advisor or financial representative for current inflation on allocation, account minimums and fees. Any major market indexes that are presented are unmanaged indexes or index-based mutual funds commonly used to measure the performance of the US and global stock/bond markets. These indexes have not necessarily been selected to represent an appropriate benchmark for the investment or model portfolio performance, but rather is disclosed to allow for comparison to that of well known, widely recognized indexes. The volatility of all indexes may be materially different from that of client portfolios. This material is presented for informational purposes. We maintain a list of all recommendations made in our allocation models for at least the previous 12 months. If you would like a complete listing of previous and current recommendations, please contact our office.

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