Foreign markets continued to rally in March, leading returns for the major asset classes and extending a bullish trend for foreign assets in 2025, based on a set of ETFs. US stocks, US junk bonds and US property shares, by contrast, continued to lose ground. The big loser in March: commodities, which posted an unusually steep decline.
Foreign real estate shares (VNQI) led the winners in March, surging 6.0%. The strong gain marks the fourth straight monthly advance for the ETF.
Foreign stocks and bonds also posted hefty gains last month, including a 5.8% rally in government bonds in developed markets ex-US (BWX).
Commodities (GSG) crashed 8.9% in March, the biggest monthly decline since the pandemic shock in March 2020.
Year to date, most of the major asset classes are still posting gains. The two downside exceptions: US stocks (VTI) and commodities (GSG).
The Global Market Index (GMI) rebounded in March, rising 0.8%–the first monthly advance since January. GMI’s year to date loss was pared to a modest 0.4% decline.
GMI is an unmanaged benchmark (maintained by CapitalSpectator.com) that holds all the major asset classes (except cash) in market-value weights via ETFs and represents a competitive benchmark for multi-asset-class portfolio strategies.
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What is the composition of the GMI? Is it something like 60% ACWI, 40% AGG, or 50% ACWI, 50%, 50% BNDW?
In theory, the GMI should be a very difficult benchmark to beat, and is the optimal portfolio for a moderate-risk investor to hold. I’m a subscriber because you acknowledge that, whereas other blogs overlook it.