Asset Class Returns - 2/28/2021
After a slight pause in strong returns in late January related to GameStop activity, the equity markets continued their march higher. By mid-February some indices had already recorded returns that are quite respectable in normal years. In the background to these rising returns was another thing that was rising – treasury rates.
Before I get into how rising rates may impact equity, I will first show the usual major asset class return graph. Even with the slight pullback at the end of February, returns are still quite impressive, especially for small caps.