Sunday, July 11, 2021

Asset Class Halftime Report: Crypto and Commodities Lead

We're half way through 2021 and it's a good time to take stock of how different asset classes are doing YTD (Click to enlarge):


Commodity indices (WTI and CRB), banks and copper were the biggest winners in the first half of the year. Oil is up 50% YTD, with strong performances in both Q1 and Q2. The CRB Index which consists of 19 commodities and is 40% Energy, has returned approximately 25%. Banks had a great Q1, and while their rally did fade in Q2, are still up more 20% YTD. The same for copper. 

What asset classes lagged? Gold! Despite concerns for inflation. Bunds, Gilt and BTPs were all down in the first half of 2021 as high growth expectations in Q1 pushed yields up. The same for EM bonds and U.S. Treasuries. All of those asset classes did rally a little bit in Q2, however.

What about Crypto? Bitcoin had a volatile (normal?) 6 months, rising from $28,987 at the end of 2020 to $63,398 on April 13th before falling to $34,577 on June 30th for a YTD gain of 19.3%. Ethereum, the lesser known, but more useful crypto currency gained over 300% over the same period. And what about Dogecoin, Elon Musk's favorite crypto currency? Doge began the year at $0.005 and rocketed to a high of $0.69 on May 7th prior to Musk hosting SNL on the 8th, before dropping to $0.25 on June 30th, for a YTD gain of 5000%. So, yeah, say it with us "who let the Doge out? Who? Who? Who?"

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