Look who’s on TOP !!

It’s been a while…so we’ll thank you for the courtesy of a small victory lap. And boy, is this time different. Managed futures typically does well in market crisis periods when all risk assets correlate, sending markets like energies, grains, and metals lower alongside stocks, all with a nice kicker in bonds being a flight to safety. This time, it’s all jumbled up, with stocks down like any other market down period – but this time commodities UP, and bonds also down. There’s carnage in the old 60/40 world… with that so-called diversified approach down about -12% for the year. Ouch.

Meanwhile, hedge funds (per our proxy) keep acting like a different flavor of the stock market while commodities continue their relentless inflationary march higher. Eight more months of this will keep us all on our toes. Stay safe out there in these red markets.

Past performance is not indicative of future results.

 

Past performance is not indicative of future results.

Sources: Managed Futures = SocGen CTA Index,
Cash = US T-Bill 13 week coupon equivalent annual rate/12, with YTD the sum of each month’s value,
Bonds = Vanguard Total Bond Market ETF (NYSEARCA:BND),
Hedge Funds = IQ Hedge Multi-Strategy Tracker ETF (NYSEARCA:QAI)
Commodities = iShares S&P GSCI Commodity-Indexed Trust ETF (NYSEARCA:GSG);
Real Estate = iShares U.S. Real Estate ETF (NYSEARCA:IYR);
World Stocks = iShares MSCI ACWI ex-U.S. ETF (NASDAQ:ACWX);
US Stocks = SPDR S&P 500 ETF (NYSEARCA:SPY)

All ETF performance data from Y Charts