2021 is a year of commodities so far. S&P GSCI global commodity index has so far attributed a gain of 18%, while the barrel of the North Sea Brent is even 29% more expensive. However, precious metals have not been successful at all. Gold is 8% weaker and silver is 3% weaker.
Equities have been also doing very well, with the broadest global equity index MSCI All Country World attributing a gain of 8% since the beginning of the year. At the same time, our preferred value stocks, which, according to MSCI All Country World Value index, attribute a 10% gain, have been particularly successful. According to MSCI All Country World Growth index, growth stocks so far attribute a gain of 5%. Central European stock index CECEEUR attributes a gain of 3%.
On the other hand, bonds have not been doing well this year. The broadest global bond index, Bloomberg Global Aggregate Bond, has been losing a very significant 3% since the beginning of the year.
As for the currency markets, US dollar has been thriving. DXY dollar index, which measures dollar's performance against a basket of other major world currencies, has been 2% stronger since the beginning of the year. At the same time, the dollar also strengthened against the euro by 2%.
Michal Stupavský
Investment Strategist at Conseq Investment Management, a.s.