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Every Major Asset Class had a significant fall in 2018


The cryptocurrency market is not the only financial asset that has suffered losses and has recorded a substantial decline with the end of the year. In fact, each asset class per investment recorded negative returns or a year of unchanged performance. This is the conclusion of a CNBC report that summarizes the performance of the markets in 2018.

According to the report, the activity that dominates the closing of the year is a series of short films about stocks, corporate bonds, commodities, public debt and virtually every other asset class available in markets around the world. This comes a few weeks after the founder of Morgan Creek Anthony Pompliano stressed that the S & P 500 has lost $ 755 billion in just over 4 hours of trading while the general market route shows no sign of stopping early.

Misery Across Board

The cryptocurrencies recorded a year which was mostly negative, recording a decline in trade volumes, as well as price falls driven by bitcoin, which fell about 80% from the historical high of December 2017. In total, between in January and December, about $ 700 billion of market capitalization has been canceled from cryptocurrencies as investors prepare for a so-called encrypted winter in the absence of optimistic forecasts that materialize.

The cryptocurrency market lost about $ 700 billion of capitalization in 2018 | Source: CoinMarketCap

This pain, however, is only a relatively small part of the pain experienced by investors in virtually all markets in the United States in October, CNN reported that the Bank of America has warned that 14 of 19 bear market signals have been activated and the turmoil could last. While some investors believed that the uptrend in equities started in March 2009 would still be prolonged, many admitted that the longest run in American history was over.

The Dow Jones Industrial Average suffered a calamitous year end Source: macro trends

The last group proved to be right, with Market Watch reporting recently that the S & P 500 fell 2.1 percent to 2,417, and the Dow Jones Industrial Average fell 1.6 percent to 22.444. The Nasdaq Composite slipped by 3% to 6.333 points.

The performance of the S & P 500 reflected that of the Dow Jones | Source: macro trends

Talking about CNBC, Ian Lyngen, head of the US pricing strategy at BMO, predicted that the downward movement will continue in 2019. In his words:

All activities underperformed in 2018 simply because the Fed accelerated the process of tightening monetary policy with a two-pronged approach to both rates of travel and budget reduction […] "We continue to expect that the Fed will increase next year until they break something.The reversal of shares is not the entity that historically led the Fed to reverse its policy, so c & # 39; it's still space to go.

Last Monday, US Treasury Secretary Steve Mnuchin spoke to the CEOs of JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup to discuss ways to calm the stock market course and confirm sufficient liquidity to support recovery efforts through commercial and retail loans.

In 2018 there were few winning options

The only major winning options in 2018 were raw materials such as natural gas, wheat, cocoa, oats, palladium and corn. Where will 2019 take us? Comment below.

Source: Finviz.com

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