June was worse than May in the stock market, but a big rebound during the last few days of the month trimmed the losses to just 1.67%. Before the recent rebound investors started pulling money out of stock funds. The pattern this year has been almost inversely perfect: investors started to put money into US stock funds right before the slide started.
There was some moderately good news on the economy and home prices near the end of the month. Bonds dipped after doing well through most of this downturn. High yield bonds and longer term US government bonds were the poorest performers in the bond market. The muni bond panic continued to recede with the riskiest muni bonds doing the best: so-called high yield muni bond funds were up 1.35% for the month followed by longer term California bonds.
The best performing stock fund categories last month were Japan, up 2.30% and about the only stock fund category in positive territory. Utilities funds were strong again, only falling 0.75%. The worst performing were funds that invest in China down -4.4%, Technology down -3.4%, and Real Estate down -3%, about the same drop as telecommunication sector funds.
In portfolio fund action in June:
Our Long/Short fund PowerShares DB Commodity Dble (DEE) soared 16.21% in June, better than the S&P 500 by 17.9% as commodity prices sunk on fears of a weakening global economy.
Our alternative fund PowerShares DB US Dollar Index (UUP) slipped -0.56% in June, better than the S&P 500 by 1.1% .
Our Blend fundJensen Value J (JNVSX) slipped -0.90% in June, better than the S&P 500 by 0.8%. In general this fund tends to do well in down markets where investors are favoring conservative stocks.
Our Small Cap Growth fund Janus Triton T (JATTX) fell -1.09% in June, better than the S&P 500 by 0.6% and better than most small cap stock funds.
Health Care Select SPDR (XLV) fell -1.14% in June, better than the S&P 500 by 0.5%
Our Large Cap Value fund Homestead Value Fund (HOVLX) dropped -3.03% for the month, worse than the S&P 500 by -1.4%. In general a lot of value-type stocks did poorly in June.
Our Large Cap Growth fund PRIMECAP Odyssey Growth (POGRX) fell -2.76%, worse than the S&P 500 by -1.1% in a month were tech stocks performed badly.
Our Sector: Financial Services fund Royce Financial Services Fund (RYFSX) fell -2.34% last month, worse than the S&P 500 by -0.7%, though this was better than most financial funds. Financial stocks have performed poorly over the last few months relative to the market and could face trouble if home prices continue downward.
Our alternative fund Satuit Capital Micro Cap (SATMX) dropped -2.20% in June, worse than the S&P 500 by -0.5%. Microcap stocks were not where suddenly risk averse investors wanted to be in June.
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June was worse than May in the stock market, but a big rebound during the last few days of the month trimmed the losses to just 1.67%. Before the recent rebound investors started pulling money out of stock funds. The pattern this year has been almost inversely perfect: investors started to put money into US stock funds right before the slide started.
There was some moderately good news on the economy and home prices near the end of the month. Bonds dipped after doing well through most of this downturn. High yield bonds and longer term US government bonds were the poorest performers in the bond market. The muni bond panic continued to recede with the riskiest muni bonds doing the best: so-called high yield muni bond funds were up 1.35% for the month followed by longer term California bonds.
Benchmark Vanguard index funds for June: Vanguard 500 Index (VFINX) : -1.67%, Vanguard Total Bond Market (VBMFX) : -0.40%, Vanguard International Index (VTMGX) : -1.30%. Our Conservative portfolio was down -0.92%. Our Aggressive portfolio was down -1.34%. We expected to do a little better relative to the S&P 500 this month on our aggressive portfolio.
The best performing stock fund categories last month were Japan, up 2.30% and about the only stock fund category in positive territory. Utilities funds were strong again, only falling 0.75%. The worst performing were funds that invest in China down -4.4%, Technology down -3.4%, and Real Estate down -3%, about the same drop as telecommunication sector funds.
In portfolio fund action in June:
Our Long/Short fund PowerShares DB Commodity Dble (DEE) soared 16.21% in June, better than the S&P 500 by 17.9% as commodity prices sunk on fears of a weakening global economy.
Our alternative fund PowerShares DB US Dollar Index (UUP) slipped -0.56% in June, better than the S&P 500 by 1.1% .
Scout International Discovery (UMBDX) receded -0.86% in June, better than the S&P 500 by 0.8% and better than most foreign funds.
American Century Utility Income (BULIX) fell -0.86% in June as investors favored lower risk areas in the market.
Our Blend fund Jensen Value J (JNVSX) slipped -0.90% in June, better than the S&P 500 by 0.8%. In general this fund tends to do well in down markets where investors are favoring conservative stocks.
Our Small Cap Growth fund Janus Triton T (JATTX) fell -1.09% in June, better than the S&P 500 by 0.6% and better than most small cap stock funds.
Health Care Select SPDR (XLV) fell -1.14% in June, better than the S&P 500 by 0.5%
Our Blend fund Parnassus Equity Income (PRBLX) fell -3.05% in June, worse than the S&P 500 by -1.4%
Our Large Cap Value fund Homestead Value Fund (HOVLX) dropped -3.03% for the month, worse than the S&P 500 by -1.4%. In general a lot of value-type stocks did poorly in June.
Our Large Cap Growth fund PRIMECAP Odyssey Growth (POGRX) fell -2.76%, worse than the S&P 500 by -1.1% in a month were tech stocks performed badly.
Our Sector: Financial Services fund Royce Financial Services Fund (RYFSX) fell -2.34% last month, worse than the S&P 500 by -0.7%, though this was better than most financial funds. Financial stocks have performed poorly over the last few months relative to the market and could face trouble if home prices continue downward.
Our alternative fund Satuit Capital Micro Cap (SATMX) dropped -2.20% in June, worse than the S&P 500 by -0.5%. Microcap stocks were not where suddenly risk averse investors wanted to be in June.