The good times for stocks came to an end in October, though not too abruptly. The S&P 500 was down 1.86% for the month, but is still up an impressive 14.16% for the year. The recent storm hitting the financial epicenter of America and the world had no negative impact on stocks other than a historic closing of the exchange. Surprisingly, foreign stocks did well while emerging market stocks declined. Bonds were essentially flat for the month, as were both Powerfund Portfolios.
Many of the worst performing stock fund categories were the best areas recently – Technology was down 5.70%, commodities funds were down 4% on economic fears, India focused emerging market funds were down 3.20%, healthcare funds were down just over 3%. The best broader categories were Europe funds up 1.17%, financials up 1.16%, and utilities up 0.97%.
We were helped along largely by owning funds in these three areas that were up the most. Our European ETF climbed 4.16% followed by a 3.16% move in our EuroPacific ETF. Royce Financial Services rose 1.06%. Value and healthcare stocks also beat the market. Shorting oil worked though this small stake doesn’t have a big impact on total portfolio returns. Just four of our stock funds underperformed the S&P 500. In bonds only our government bond fund underperformed the total bond market index fund.
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The good times for stocks came to an end in October, though not too abruptly. The S&P 500 was down 1.86% for the month, but is still up an impressive 14.16% for the year. The recent storm hitting the financial epicenter of America and the world had no negative impact on stocks other than a historic closing of the exchange. Surprisingly, foreign stocks did well while emerging market stocks declined. Bonds were essentially flat for the month, as were both Powerfund Portfolios.
We had a good month relative to the stock and bond markets and closed in on the S&P’s returns for the year – at a lower risk profile. Our Conservative portfolio was down 0.10%. Our Aggressive portfolio was up 0.09%. Benchmark Vanguard index funds for October: Vanguard 500 Index (VFINX) down 1.86%, Vanguard Total Bond Market (VBMFX) up 0.11%, Vanguard International Index (VTMGX) up 1.14%. Vanguard Emerging Markets Stock Index (VEIEX) down 0.42%.
Many of the worst performing stock fund categories were the best areas recently – Technology was down 5.70%, commodities funds were down 4% on economic fears, India focused emerging market funds were down 3.20%, healthcare funds were down just over 3%. The best broader categories were Europe funds up 1.17%, financials up 1.16%, and utilities up 0.97%.
We were helped along largely by owning funds in these three areas that were up the most. Our European ETF climbed 4.16% followed by a 3.16% move in our EuroPacific ETF. Royce Financial Services rose 1.06%. Value and healthcare stocks also beat the market. Shorting oil worked though this small stake doesn’t have a big impact on total portfolio returns. Just four of our stock funds underperformed the S&P 500. In bonds only our government bond fund underperformed the total bond market index fund.