Global Asset Class Returns; The US and Tech Off to a Very Bad Start

Below we highlight the year to date returns of the major indices for a number of countries.  As shown, US indices are leading the declines, with the Nasdaq already down 8%.  BRIC countries (Brazil, Russia, India, China) are holding up relatively well, as Russia, India and China are actually in the black for the year.

Looking at various asset classes, US equities and real estate are leading the declines.  The Dow Jones Real Estate index is down 10% and the S&P 500 is down 5.3%.  Volatility is leading the way, up 13%, followed by Gold (+5.9%), the 10-Year (+1.93%) and Oil (+1.04%).

On a sector basis, Technology stocks are down the most at -9.96%.  Tech is followed by Financials, Consumer Discretionary and Industrials.  The two sectors up on the year are Utilities and Health Care.  If one were to draw up the likely performance of sectors and assets leading up to or during a recession, it probably couldn't get more similar than what is actually happening now.  But like Obama's 95% odds of winning the New Hampshire primaries on Intrade yesterday, markets can get it wrong.

   

Comments

[Tim]

Does a VIX ETF exist? If so, that would be compelling in today's market.