![]() ![]() While rates have risen meaningfully off of the bottom, it is worth pointing out that the current yield of the 10 year U.S. As with most markets in 2020, the beginning and ending values fail to tell the complete story as the 10 year yield hitĪ new historic low of 0.52% in August. Treasury Bond yield declining from 1.92% to 0.93% over the course of the year. A tremendous decline in interest rates is responsible for a big portion of the return with the 10 year U.S. This is incredible given that the yield on the index was about 2.3% to start 2020. The Bloomberg BarclaysĪggregate bond index returned 0.7% in the fourth quarter resulting in a return of 7.5% for the year. The bond market was relatively flat for the fourth quarter as equity indices posted double digit returns. Major U.S., international and emerging market indices all posted greater than 45% gains since the beginning of the second quarter. Emerging market stocks led the way abroad, returning 18.3% for the year. ![]() ![]() International stocks took longer than domestic stocks to break even after the drawdown in the first quarter of 2020, but finished up 11% for the year after a very strong fourth quarter. Small cap stocks had meaningfully underperformed on a year-to-date basis entering the 4th quarter but saw exceptionally strong performance in Q4 returning over 31% over the final 3 months of the year relative to just 12.1% for the S&P 500. Smaller capitalization stocks, as measured by the Russell 2000, outperformed larger stocks and returned 20% for the year. After the fastest bear market in history, the S&P 500 finished 2020 up by 18.4%.
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