The ETF Portfolio Strategist: 25 Dec 2022
Trend Watch: Global Markets & Portfolio Strategy Benchmarks
Yes, it’s Christmas and I’m reviewing financial markets. I know, I know. But this will be very brief recap before I head out for holiday festivities.
Let’s start with the big-picture: nearly every corner of the 16-fund global opportunity set is on track to post a loss for 2022. The exceptions: stocks in Latin/South America (ILF), which closed last week with a solid 13.2% year-to-date gain. Commodities (GCC) are also posting a decent 7.2% year-to-date rally. Otherwise, red ink has spilled wide and far. For details on the metrics in the table below, see this summary.
US stocks (VTI) are in the hole this year by more than 19%, and the trend still looks bearish. The third rally this year appears to be rolling over after last week’s loss—the third in a row.
US Treasuries have a had a rough year, too, but a rebound may be brewing. IEF suffered a setback last week, but perhaps that’s just noise as the bond market debates whether recession risk will offset expectations for more rate hikes.
As for our portfolio benchmarks, all five remain deeply in the red for 2022.
That’s all for now… gotta run. Happy holidays! ■