Jim Picerno at The Capital Spectator files this report on the damage done to financial markets during the month of May, a trend that looks set to continue this month.

Stocks around the world led the decline, with foreign developed markets posting the biggest loss among the major asset classes. What changed the sentiment so sharply in May? A renewed fear of deflation was one catalyst. Investors are increasingly focusing on the growing burden of debt that weighs on the global economy, particularly in the mature countries of Europe, Japan and the U.S

Of course, gold is missing from the list – up 3.0 percent in May and almost 11 percent higher for the year. There are more May results in this Bloomberg report on hedge fund performance – apparently the gains on John Paulson’s massive gold holdings were not enough to offset losses elsewhere.