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2017: the year in which every type of asset gained in value

Not a single asset class delivered a loss this year, for the second year in a row. - Bank of America Merrill Lynch
Not a single asset class delivered a loss this year, for the second year in a row. - Bank of America Merrill Lynch

Not a single type of asset delivered a loss in 2017 – for the second year in a row. 

Shares in emerging markets – such as India, China and Russia – delivered the highest performance, at 35.5pc over the year, according to data from Bank of America Merrill Lynch.

The worst performing asset class was cash, for the second year in a row, as persistently low Bank Rate dragged down interest rates. On average cash delivered 0.8pc – a slight rise on last year's 0.5pc return.

The rising markets are in stark comparison with the height of the financial crisis, in 2008, when just three asset classes delivered positive returns. 

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In that year the worst performing asset class was emerging market stocks, with a 53pc loss, while the best performing asset, US government bonds, delivered 14pc. 

 

Bank of America Merrill Lynch heatmap - Credit: Bank of America Merrill Lynch
Shares in emerging markets rose by the most this year – 35.5pc Credit: Bank of America Merrill Lynch

The MSCI EAFE index, which tracks the top 21 developed markets, including countries in Europe, Australasia and the Far East, but excluding America and Canada, delivered the second highest returns in 2017  – at 25pc.

This was followed by the S&P 500, America's benchmark index, which returned 23pc.

Guide to the heatmap

MSCI EM: emerging market stocks

MSCI EAFE: developed market stocks

S&P 500: leading American stock index

Global HY: high-yield bonds

Reits: Real estate investment trusts

Global IG: investment grade bonds

US Treasuries: US government bonds