Asset Class Returns As At 30 April 2009

For the month of April 2009, REITs finally recovered and outperformed other asset classes, but on a year to date basis, it is still the worst performer, having lost more than 50%. There is indications that things might be bottoming in US real estate. Despite a large number of foreclosures still, there were more bidders for those auctions. Home builders in the US have staged a similar rebound last month. Emerging market stock have outperformed other equity markets, still on a year to date basis, the losses were still bigger than developed markets and the US equities. What is more interesting is the very flat performance of commodities. The bottoming of markets may tie in with a working down of inventories in commodities. I expect commodities to outperform the other asset classes in the coming months.

p/s photo: Pace Wu Pei Ci