Which asset classes performed best in 2016?
19 Dec 16
2016 has been a remarkable year. The two best performing large equity markets this year are countries that have been mired in recession for years. At the same time, the stock market of the world’s fastest growing large economy has been delivering some of the lowest returns.
2016 was yet another year US equities outperformed almost all other equity markets. The ‘Trump boost’ has been so powerful, that US equities have generated almost all their performance for the year in the final two months of it. Small caps are up more than 20% since 3 November.
Trump’s election has sparked considerable inflows into the asset class, as well as a dispersion between value and growth stocks. However, with both the S&P 500 and Russell 3000 indexes at all-time highs, the Fed embarking on a rate hiking cycle and Donald Trump’s economic policies still shrouded in mystery, the big question for 2017 is whether the rally will continue or reverse.
Tags: Donald Trump | High Yield | Russia | US
