2019 Quarter 1 Stock and Bond Market Results
Equity markets posted positive returns around the globe in the first quarter. Looking at broad market indices, US equities outperformed non-US developed and emerging markets.
Small caps outperformed large caps in the US and non-US developed markets but underperformed in emerging markets. Value stocks generally underperformed growth stocks in all regions.
REIT indices outperformed equity market indices in both the US and non-US developed markets.
US equities outperformed both non-US developed and emerging markets. Small caps outperformed large caps in the US. Value underperformed growth across large and small cap stocks.
In US dollar terms, developed markets outside the US outperformed emerging markets but underperformed the US equity market during the quarter. Small caps outperformed large caps in non-US developed markets. Value underperformed growth across large and small cap stocks.
In US dollar terms, emerging markets underperformed developed markets, including the US. Value outperformed growth across small cap stocks but underperformed in large caps. Small caps underperformed large caps.
Specific Country Performance
In US dollar terms, Hong Kong and Canada recorded the highest country performance in developed markets, while Japan and Singapore posted the lowest returns for the quarter. In emerging markets, Columbia and China recorded the highest country performance, while Turkey and Qatar posted the lowest performance.
The Bloomberg Commodity Index Total Return returned 6.32% for the first quarter of 2019. The energy complex led quarterly performance. Crude oil gained 29.40%, and unleaded gas added 25.92%. Grains was the worst-performing complex. Wheat (Kansas) and wheat (Chicago) declined by 13.14% and 9.52%, respectively.
Bonds / Fixed Income
Interest rates decreased in the US Treasury fixed income market during the first quarter. The yield on the 5-year Treasury note declined 28 basis points (bps), ending at 2.23%. The yield on the 10-year Treasury note decreased 28 bps to 2.41%. The 30-year Treasury bond yield fell 21 bps to finish at 2.81%.
On the short end of the curve, the 1-month T-bill yield was relatively unchanged at 2.43%, while the 1-year T-bill yield dipped 23 bps to 2.40%. The 2-year Treasury note finished at 2.27% after a 21 bps decrease.
In terms of total returns, short-term corporate bonds gained 1.83%. Intermediate-term corporate bonds had a total return of 3.82%.
Total returns for short-term municipal bonds were 1.33%, while intermediate munis gained 2.78%. Revenue bonds outperformed general obligation bonds.
You can download the full PDF Quarterly Summary here.
Source: Dimensional Fund Advisors LP. Past performance is no guarantee of future results. This information is provided for educational purposes only and should not be considered investment advice or a solicitation to buy or sell securities. There is no guarantee an investing strategy will be successful. Diversification does not eliminate the risk of market loss. All expressions of opinion are subject to change. This article is distributed for informational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investors should talk to their financial advisor prior to making any investment decision. Eugene Fama is a member of the Board of Directors of the general partner of, and provides consulting services to, Dimensional Fund Advisors LP.