Written by: Chris Cogliano, Portfolio Specialist/Investment Analyst
Key Takeaways:
- June saw a mix of performances across asset classes
- U.S. Large Cap is having a solid year in the first half of 2024, returning 15.3%
- In reviewing YTD figures, its proven that diversification in your portfolio could bode well to working towards your financial goals
Market Recap:
The markets in the month of June saw mixed performance among asset classes. Emerging Markets and U.S. Large Cap had a strong month, up 4% and 3.6%, respectively, while International Developed and U.S. Small Cap were down -1.6% and -.9%, respectively. This non-typical performance gap can be attributed to India and South Korea outperforming for the month for Emerging Markets, and U.S. Tech outperforming again for U.S. Large Cap. As for Real Estate and Fixed Income, both rate sensitive asset classes, these were positive performers for the month. Real Estate was up 1.9% while Fixed Income was up .95%. Despite positive performances for June, both are still negative YTD 2024, which leads us to our chart of the month, YTD asset class returns.
Chart of the Month:
June’s chart of the month shows the six-month performance of the asset classes the Investment Team follows monthly. We like to review the performance after the first half of the year to see trends that have been in favor and trends that may be facing headwinds. The clear winner was U.S. Large Cap equities, returning 15.3% for the first half of 2024. This can be attributed to the AI trend and its impact on industries. For instance, semiconductor businesses benefited from the large capital expenditures of other tech companies building out their AI capabilities. The Energy and Financial sectors have also contributed to strong YTD performance. Emerging Markets and International Developed followed U.S. Large Cap, up 7.7% and 5.75%, respectively. Emerging Market’s large weight from China has not helped it in the past few years, but China, Taiwan, and India have all supported the asset class’s positive performance YTD. Fixed Income has generally been struggling with rate volatility as well as rate uncertainty, down -.7%. The Bloomberg Agg has struggled to maintain any positive performance YTD due to rate cut expectations being highly uncertain. Another rate sensitive asset class that has struggled due to rate volatility is Real Estate. Real Estate has been the worst performer of the group, down -3.2% YTD.
What does this mean for you?
These performances demonstrate the importance of maintaining a diversified portfolio in order to pursue your financial goals. When one asset class outperforms, others will tend to underperform. Building a diversified portfolio that aligns with your financial plan helps eliminate the uncertainty around situations like this and can increase your experience as a long-term investor. If you have any questions, please reach out to your Shepherd Financial Partners advisor.
Disclosures
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Investment advice offered through Shepherd Financial Partners, LLC. A registered investment advisor. Registration as an investment advisor does not imply any level of skill or training.
Securities offered through LPL Financial, member FINRA/SIPC. Shepherd Financial Partners and LPL Financial are separate entities. Additional information, including management fees and expenses, is provided on Shepherd Financial Partners, LLC’s Form ADV Part 2, which is available by request.
The content is developed from sources believed to be providing accurate information.
Source: @YCharts
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