Here’s a chart that Deutsche Bank includes in its periodic “Equity View” report.
It’s the year-to-date and month-to-date returns of the world’s most important asset classes.
There aren’t too many surprises here. Japan’s Nikkei is leading stocks and the yen is lagging the currencies. High yield bonds are leading the credit markets as investors reach for yield.
One area that may surprise some is commodities. Gold has experienced a very widely reported sell-off. But iron ore is actually having a worse year.
Iron ore is sensitive to activity in China, where tons of the metal is used in the country’s massive ongoing infrastructure projects.
Earlier the month, we learned that manufacturing activity stalled. Perhaps, this is contributing to the sell-off.