Major Asset Classes: February 2022 Performance Review

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Most markets around the world continued to decline in February, marking the second month of widespread losses in 2022 for major asset classes. Main exceptions: commodities and inflation-indexed government bonds.

A large measure of commodities posted another solid monthly gain in February. The WisdomTree Enhanced Commodity Strategy Fund (GCC) rose 7.5%, building on strong growth in the previous month.

High inflation around the world, exacerbated by the war in Ukraine, helped push inflation-linked bond prices higher last month. A pair of ETFs replicating US and foreign government inflation-linked securities posted modest gains (TIP and WIP, respectively).

Otherwise, losses prevailed in February. The deepest setback: bonds issued by emerging market governments through VanEck Vectors JP Morgan EM Local Currency Bond (EMLC), which fell 4.9% last month.

Total assets

Capital Spectator

The Global Market Index (GMI) also suffered in February. This unmanaged benchmark (maintained by CapitalSpectator.com), which holds all major asset classes (except cash) in market value weightings, lost 2.3% last month. Since the beginning of the year, the GMI is down nearly 7%.

Looking at GMI’s performance against US stocks and bonds over the past year continues to reflect strong average performance for this multi-asset class benchmark (blue line in chart below) . US stocks (VTI) gained nearly 11.9% for the one-year window. In contrast, a large measure of US bonds – Vanguard Total US Bond Market (BND) – fell 2.6%. GMI gained 3.3% for the year ended Feb. 28.

GMI Wealth Indices U.S. Bond Stock Markets

Capital Spectator

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Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.

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