All The Major Asset Classes Fell Last Week—Except Commodities

May 21 10:05 2018 Print This Article

Markets declined last week in nearly every corner of the major asset classes, with the lone exception of broadly defined commodities, based on a set of exchange-traded products.

The iPath Bloomberg Commodity (DJP) gained 0.6% over the five trading days through May 18. The increase lifted the exchange-traded note close to its highest level in a month.

“The rally likely has room to run, particularly from a returns perspective,” advised Jeffrey Currie, Goldman’s global head of commodities in a note to clients last week. “Oil fundamentals are now more bullish as robust demand faces supply disappointments.”

Bloomberg this morning reports that “commodities were a big casualty of the escalating trade war between the US and China, but are now set to be a major beneficiary of Beijing’s pledge to import more American goods.”

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About Article Author

The Capital Spectator

CapitalSpectator.com is a finance/investment/economics blog that’s edited by James Picerno. The site’s focus is macroeconomics, the business cycle and portfolio strategy (with an emphasis on asset allocation and related analytics). In late-2009, the Eastern Economics Journal named Picerno as one of the nation’s “top economics bloggers”. Picerno is the author of Dynamic Asset Allocation: Modern Portfolio Theory Updated for the Smart Investor (Bloomberg Press, 2010) and Nowcasting The Business Cycle: A Practical Guide For Spotting Business Cycle Peaks (Beta Publishing, 2014). His articles on finance and economics have appeared in a variety of publications and news outlets over the years, including The Atlantic, Financial Advisor, BankRate.com, HorsesMouth.com, and Bloomberg Briefs: Economics. He also pens a daily economics column for the Saxo Group’s TradingFloor.com web site. Picerno has been writing about investing and macroeconomics since the early 1990s at Bloomberg, Dow Jones and other media groups before becoming an independent writer/analyst in 2008. He also offers consulting services on asset allocation and portfolio strategy, the US business cycle, and related data analytics in R and Excel.

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