FlowBank

1184 days ago

Performance by asset class, per year

2020 was interesting to say the least. For example, the Russell 2000 Index of small companies outperformed the S&P 500. However, small caps generally underperformed large caps by a decent amount. Commodities have generally not been performing well in the past 10 years. The S&P 500, in contrast, is basically the contrary of commodities, with US stocks being in the top 3 of asset class consistently in the past 10 years. 

Perfomance per year and asset class

1186 days ago

A new year is starting. Time to believe in your investing intuition!

Source: @markrtingmentor.in 

If you investors $1k ten years ago

1187 days ago

Gavekal foresees a major economic cycle shift from disinflationary boom to inflationary boom

According to Gavekal, economic activity is likely be strong to very strong in the near future. As such, inflation is going to accelerate significantly in the next 12 months. Yields on 10-year treasuries will rise from an abnormally low level to a more normal level. If the Fed tries to stop rates rising, the US dollar may collapse, which will be inflationary for the US and deflationary in Europe. In short, the US is moving from a deflationary boom to an inflationary boom. This should have major implications in terms of asset classes performance leadership. To sum up, buy stores of value (Gold, real estate, commodities, high fixed costs companies, cyclical producers) and sell long-term treasuries - source: Gavekal

The four quadrants business cycle framework by Gavekal

1187 days ago

Global Monetary stimulus has surged by $9 trillion last year. This is by far the highest amount ever. It is 3x the size of 2008.

Source: Crescat Capital 

Worldwide central bank assets variation by year

1187 days ago

Best/worst performing Asset classes and their maximum drawdown in 2020

Source: James Wong 

How Every Asset Class, Currency, and S&P 500 Sector Performed in 2020
bg_newsletter