How Every Market Performed in 2021
After the roller coaster of volatility in 2020, the majority of asset classes in 2021 saw positive returns as the world reopened for business.
The Federal Reserve’s accommodative monetary policy, supply chain struggles, and high demand for fuels and raw materials for the clean energy transition largely shaped the markets.
Alongside the rise in inflation, commodities and cryptocurrency outperformed as broad equity indices saw double-digit returns, with the S&P 500 rising by 26.9% in 2021.
Markets Roundup for 2021
Speculation and the energy fuels for the world’s reopening were two of the main themes for markets in 2021, reflected in Bitcoin (59.8%) and crude oil (56.4%) being the top two performing assets in that time frame.
The S&P GSCI commodity index (37.1%) was another top performer, as agricultural and livestock food prices rose alongside the Dow Jones Real Estate Index (35.1%).
|Asset Class||2021 Return||Asset Type|
|WTI Crude Oil||56.4%||Commodity|
|Dow Jones Real Estate Index||35.1%||Real Estate|
|Bloomberg Barclays Corporate Bonds Index||-1.2%||Bonds|
|Bloomberg U.S. Treasury Index||-2.5%||Bonds|
|MSCI Emerging Markets||-5.5%||Equities|
Despite most physical and digital commodities seeing price gains, precious metals such as gold (-3.6%) and silver (-11.7%) struggled to hold onto their value, while industrial and battery metals like lithium (Read more...)