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2017 Winners Make Peculiar Bedfellows

By Advisor Perspectives
Capital Markets

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Russ explores why both risky assets and traditional safe havens have performed well this year, and whether that can continue.

Thus far, 2017 has been notable for solid gains, not intellectual consistency. For various reasons, investors have demonstrated a marked preference to “barbell” their risk. Year-to-date performance suggests a preference for either very risky or very safe assets.

The year’s top performers include emerging market (EM) equities, industrial metals and the tech heavy NASDAQ, all traditional “risk-on” assets. However, defensive assets are also performing surprisingly well. See the chart below. Gold has outperformed most developed equity markets, the Japanese yen has rallied and long-dated (20+ year) Treasuries are up over 10%.

Read more at Advisor Perspectives.

Photo: Dick Thomas Johnson

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