Q2 2015 Equity Overview – Financial Charts

Overview

Let’s start with an overview of performance in the financial and commodities markets year to date.

Note: Click on the charts below to view full-size versions. Q2 2015 stock comparison

After rising 12% in 2014, the US Dollar Index continued to rise strongly in the first quarter and then consolidated in the 2nd quarter, now up 5.8% for the year.

US Dollar Index

$USD

US Equities

While the S&P was essentially flat for the first half of the year, small-caps and mid-caps continued to perform.

SCHA, SCHM, SCHX, PKW

SCHA, SCHM, SCHX, PKW

Real estate was the strongest sector globally.

Morningstar Sectors

Stock Sectors

Meantime in the US, federal policies ensured a strong corporate health care sector and an increasing number of proposed large mergers in the health care industry.

IBB – Biotech

IBB

Obamacare ETFs: XLV(Health Care Select), IHE (US Pharmaceuticals), IHF (Providers), IBB (Biotech),

IHI (Medical Devices)

XLV

Curing cancer and preventing hacking topped the 1 year returns at Motif Investing.

Motif Investing

Motif Investing

US Home Construction outperformed the S&P for the first half….

ITB

ITB

…while US Real Estate sunk, in part over concerns regarding rising interest rates.

IYR

IYR

Oil was flat – no recovery in the oil patch yet. Solar was the energy group that did well in the first half.

OIL

OIL

Despite the US continuing to play the “oil card,” the Russian markets recovered some of last years losses.

RSX (Russia), OIL

RSX

Germany continues to be one of the strongest markets, although giving up almost half of its 2015 gains in the last three months.

DAX (Germany)

DAX

Chinese equities have also enjoyed a very strong 2015. May and June gave up almost half of the gains so far this year.

FXI (China Large Caps)

FXI

ASHR

ASHR

India also had a weak second quarter and ended up slightly for the year to date.

PIN (India)

PIN

EEM (Emerging Markets)

EEM

Internationally, the developed markets outperformed the emerging markets.

EFA (International Developed)

EFA

The frontier markets sagged.

WAFMX (Frontier Markets)

WAFMX

Fixed Income

The turn in the fixed income market is upon us. Add dropping prices to low yields, and you have an unattractive combination.

AGG (Bond Aggregate), IEF(5-7yr Treasury), TLT (20yr+ Treasury)

AGG IEF TLT

Commodities

Precious metals continue to underperform and the charts look weak despite continuing efforts to lock up physical bullion inventory around the globe.

GLD (Gold), SLV (Silver)

GLD - SLV

CRB (Commodities Index)

Commodities = up and down, up and down, with no change for the year.

$CRB

 

A Look “Down Under”

For many years, Australian equities enjoyed the demand for commodities created by growth in Asia, especially China.

 

 

EWA (Australia), ENZL (New Zealand) vs. EFA (Developed International) & S&P – 10 Years

EWA, ENZL, EFA - 10 Years

 

 

Coming out of the 2008-9 financial crisis both Australia and New Zealand were trading up with other markets, with Australia out performing the S&P until the US market began to rise ahead of global markets in 2013.

EWA (Australia), ENZL(New Zealand) vs. EFA(Developed International) & S&P – 5 Years

EWA, ENZL, EFA - 5 Years

As the markets have dropped in the second quarter, Australia and New Zealand have dropped with them. New Zealand, in particular, is underperforming most markets.

EWA (Australia), ENZL (New Zealand) vs. EFA (Developed International) & S&P – YTD

EWA, ENZL, EFA - YTD