It’s nearly June 30, halfway through the year.
And as seen in the chart below from Deutsche Bank, as opposed to past years, it’s been a good six months for many major asset classes, particularly in Europe and emerging markets.
Most asset classes listed in the table have strengthened with the largest gains coming from emerging market and European stocks.
While that reflects stronger global economic conditions and diminished political risk in Europe, there’s no doubt it has been assisted by declining US bond yields and a weaker US dollar, powering buying across fixed income, stocks and currencies other than the greenback.
And while there’s been some heavy losses in commodity markets, the chart above is a snapshot of market performance as at June 26, and doesn’t capture the recent rebound in crude and iron ore markets.
There’s been few losers to date.
It will be interesting to see whether that remains the case in the second half of the year, especially with increased chatter of potential monetary policy normalisation in many developed markets.