…we noted more redistribution of the US Equity asset classes.
Lois put together a great video demonstrating what we mean when we say “US Equities are evening out.” Imagine six buckets, each representing Large Growth, Large Value, Mid Growth, Mid Value, Small Growth and Small Value. Each of these buckets are partially filled with water, but at different levels. From week to week the water levels are changing, some spilling over into others until eventually the water levels may even out. That is what we have been observing lately across these asset classes.
Large Growth, Large Value and Mid Value were all down, but nothing more than 0.75% from the previous week. Mid Growth and Small Growth were both up – and these are the two buckets with the lowest water levels YTD.
Foreign companies were down all over 1%, performing worse than US Equities. This is a change from prior reports where Foreign Equities weren’t hit quite as hard as the US. Emerging markets continues to be all over the place, last week down over 2%.
Lois had a great analogy to spice up our bond coverage this week. Bonds are barely buried underground like little seedlings. If you took your shoe and scraped along the surface you would uncover the bonds. We did have US High Yield bonds up a little, pushing their YTD returns over 5%. All other bonds were down from the previous week.