Visualizing Asset Class Returns in Q1 2025

The New Diplomat
Writer

Ad

Ranked: Top Sources of Billionaire Wealth by Industry

Key Takeaways Forbes found finance and investments leads the top sources of billionaire wealth (464 billionaires) in 2025. Technology is the second-most common sector for billionaires (401), adding 59 new names since 2024. The world’s ultra-rich aren’t evenly spread across either the globe or the economy. Instead, their fortunes tend to cluster in a handful of high-growth, high-margin industries. This…

Constitutionality of suspending elected public Officers in a state (2)

By Ebun-Olu Adegboruwa, SAN Duration and Renewal: If the Proclamation is approved by the National Assembly as required by the Constitution, the Proclamation shall be in force for six months. It is subject to renewal for another six months through a resolution by each House of the National Assembly. That approval has several meanings in…

2027: Reactions as Court, NBA Chief Affirm Jonathan’s eligibility to run for president

By Obinna Uballa Human rights lawyer and former Nigerian Bar Association Vice President, Dr. Monday Onyekachi Ubani, has said there is no constitutional provision barring former President Goodluck Jonathan from contesting the 2027 presidential election. This is as political speculation about Jonathan’s 2027 ambition continues to intensify. Sources close to the former president disclosed that…

Ad

  • As one of the top performing assets in Q1 2025, gold soared to record highs amid global trade uncertainty and its role as an inflation hedge.
  • European equities also had a strong quarter, with the STOXX Europe 600 outperforming the S&P 500 by 9.8 percentage points.
  • Amid concerns of weaker economic growth and rising inflation, U.S. equities had their worst quarter since 2022.

As a flurry of tariffs are upending global trade alliances, asset returns are taking a new turn.

Unlike the past two years, where U.S. stocks dominated, they are now facing a steepening selloff. Meanwhile, safe haven assets like gold and long-duration Treasuries are outperforming many other asset classes.

This graphic shows asset class returns in Q1 2025, based on various sources.

Asset Class Returns in a Shifting Landscape

Below, we rank the performance of major asset classes so far in 2025:

Asset Class Index Q1 2025 Returns
Gold London Fix 19.0%
Europe Equities STOXX Europe 600 5.2%
Emerging Market Equities iShares MSCI Emerging Index Fund 4.5%
Long Duration Treasurys iShares 20+ Year Treasury Bond ETF 4.2%
Commodities S&P Goldman Sachs Commodity Index 3.4%
U.S. REITs Dow Jones Real Estate Index 2.6%
Crude Oil WTI -0.7%
U.S. Dollar Index U.S. Dollar Index -4.0%
U.S. Large Caps S&P 500 -4.6%
U.S. Small Caps Russell 2000 -9.8%
Bitcoin -11.5%

In late March, gold hit all-time highs of over $3,100 amid ongoing trade tensions, making it a top-performing asset over the quarter.

Also driving returns are gold ETF inflows and central bank purchases. By year-end, gold is projected to reach as high as $3,300 per ounce amid sustained central bank demand.

Notably, European stocks posted their strongest quarter relative to the S&P 500 since 2015, driven by the bloc’s plans to increase defense spending by up to $840 billion. This surge in military investment is expected to fuel economic growth across the region. Overall, European stocks gained 5.2% as investors have increasingly looked to the continent.

Going further, U.S. large caps closed off the quarter with -4.6% returns, with major tech giants among the hardest hit. Meanwhile, the U.S. dollar weakened by 4% as confidence in the U.S. economy declined—boosting nearly all developed market currencies against the dollar.

Credit: Visual Capitalist

Ad

X whatsapp