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Asset Class Overview – May 2016

Asset Class Overview

As unconventional as it is, stock and bond prices moved higher in April as dovish global monetary policy supported both markets. The bond market continued to benefit from easy central bank policies as well as lingering global growth concerns that provided an additional bid for safe haven bonds. The Barclays Aggregate Index, a measure of the broad investment grade bond universe, returned a positive 0.38% for the month (positive 3.43% year-to-date). Commodity prices enjoyed their best month of the year, with the Thomson Reuters Core Commodity Index returning a positive 8.26% for the month (positive 4.81% year-to-date). Global equities played catch-up during April, outperforming domestic markets by more than one percent. Meanwhile, the high yield bond market continued its impressive streak returning almost 4.0% for the month, according to the Merrill Lynch US Cash Pay High Yield Index, pushing year-to-date returns north of 7.0%.

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