2010–2019: A Snapshot of the Decade

As we turn the page on a new decade, we note the following key trends from the past 10 years:

• U.S. equities were the dominant asset class over the last 10 years, meaningfully outperforming non-U.S. developed and EM equities. However, the prior decade was a stark contrast as U.S. equities fell 0.9% and EM equity was a top performer.
• Currency was a headwind for U.S.-based investors, with the USD gaining against most major currencies, particularly in EM countries.
• The current S&P 500 run is the second largest bull market in history at nearly 4,000 days, dating back to March 2009—second only to the bull market from late 1987 to the peak of the tech bubble in March 2000.
• The U.S economy continues to grow, with the current expansionary period the longest on record.
• Active management had a difficult 10-year period, with the median manager across most asset classes underperforming.
• Flows into passive strategies have grown considerably over the decade, with more than 50% of U.S. equity assets now in passive funds.
• Hedge funds consistently underperformed their long-only counterparts, aside from a handful of volatile months.

Indices referenced are unmanaged and cannot be invested in directly.  Index returns do not reflect any investment management fees or transaction expenses. This report is intended for informational purposes only; it does not constitute an offer, nor does it invite anyone to make an offer to buy or sell securities.  Information herein has been obtained from third-party sources that are believed to be reliable; however, the accuracy of the data is not guaranteed and may not have been independently verified. The content of this report is current as of the date indicated and is subject to change without notice.  It does not take into account the specific investment objectives, financial situations, or needs of individual or institutional investors.   All commentary contained within is the opinion of Prime Buchholz and intended solely for our clients. Unless otherwise noted, FactSet was the source for data used in this report. Some statements in this report that are not historical facts are forward-looking statements based on current expectations of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Past performance is not an indication of future results.