October’s sharp rebound fizzled in November, and a late month rebound wasn’t enough to push the S&P 500 back into positive territory. The market’s slight dip for the month was similar to the bond market’s slip, resulting in a down November for most investment mixes. It doesn’t seem it but the S&P 500 is up just under 1% (with dividends) for the year. Once again, foreign stocks underperformed US stocks last month.
Our Conservative portfolio fell 0.20%. Our Aggressive portfolio dropped 1.19%. We are now a little too heavy in foreign stocks to beat the S&P 500 when foreign stocks underperform the US market by such a wide margin.
We seem to be smack dab in the middle of a market that would probably be 20% higher if the perpetual panic in Europe and recession fears magically disappeared, or could be 25% lower if a Europe-led global recession got underway.
The best performing stock fund categories last month were: precious metals up 0.80%, energy up 0.30%, and healthcare up 0.30%. The worst performing were: Latin America down 6.50%, and Asia down 5.80%.
November’s Winners:
Our ultra-long duration government bond fund Vanguard Extended Duration Treasury (EDV) climbed 3.46% in November as a late month panic led to another Treasury bond buying spree.
PowerShares DB US Dollar Index (UUP) climbed 2.27% last month as nervous investors drove up the US dollar. Sure our currency has been sliding for much of the decade but it still shines during an old fashioned crisis.
Healthcare fund Health Care Select SPDR (XLV) increased 0.95% in November and American Century Utility Income (BULIX) increased 0.51% as investors again favored lower risk stocks.
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October’s sharp rebound fizzled in November, and a late month rebound wasn’t enough to push the S&P 500 back into positive territory. The market’s slight dip for the month was similar to the bond market’s slip, resulting in a down November for most investment mixes. It doesn’t seem it but the S&P 500 is up just under 1% (with dividends) for the year. Once again, foreign stocks underperformed US stocks last month.
Benchmark Vanguard index funds were all in the red in November: Vanguard 500 Index (VFINX) down 0.23%, Vanguard Total Bond Market (VBMFX) down 0.30%, Vanguard International Index (VTMGX) down 2.63%, Vanguard Emerging Markets Stock Index (VEIEX) down 3.41%.
Our Conservative portfolio fell 0.20%. Our Aggressive portfolio dropped 1.19%. We are now a little too heavy in foreign stocks to beat the S&P 500 when foreign stocks underperform the US market by such a wide margin.
We seem to be smack dab in the middle of a market that would probably be 20% higher if the perpetual panic in Europe and recession fears magically disappeared, or could be 25% lower if a Europe-led global recession got underway.
The best performing stock fund categories last month were: precious metals up 0.80%, energy up 0.30%, and healthcare up 0.30%. The worst performing were: Latin America down 6.50%, and Asia down 5.80%.
November’s Winners:
Our ultra-long duration government bond fund Vanguard Extended Duration Treasury (EDV) climbed 3.46% in November as a late month panic led to another Treasury bond buying spree.
PowerShares DB US Dollar Index (UUP) climbed 2.27% last month as nervous investors drove up the US dollar. Sure our currency has been sliding for much of the decade but it still shines during an old fashioned crisis.
Healthcare fund Health Care Select SPDR (XLV) increased 0.95% in November and American Century Utility Income (BULIX) increased 0.51% as investors again favored lower risk stocks.
American Century Government Bond (CPTNX) increased 0.30% as investors favored US government bonds, enough that even an intermediate term bond fund rose.
Our Mortgage Bond fund Doubleline Total Return Bond (DLTNX) increased 0.27% in November, better than the bond market by 0.6%
iShares MSCI Japan Index (EWJ) increased 0.32% last month, better than the S&P 500 by 0.5% and much better than most foreign markets.
November’s Losers
Vanguard European ETF (VGK) fell 2.87% in November, worse than the S&P 500 by 2.6% in a wild month for euro area stocks.
Our Large Cap Growth fund PRIMECAP Odyssey Growth (POGRX) fell 2.72% in November, worse than the S&P 500 by 2.5% as riskier stocks underperformed.
Vanguard Europe Pacific ETF (VEA) dropped 2.09%, mostly on the drag from Europe.
International Diversified fund Scout International Discovery (UMBDX) retreated 2.01% last month, worse than the S&P 500 by -1.8%