August was a surprisingly good month on Wall Street. A solid chunk of the losses incurred in the stock market from earlier in the year was erased. Factor in gains posted so far in September and the media is once again back to reminding us how close we are to an all time high in the Dow. Interest rates continued lower, and are now almost back to where they were before the big scary move up in rates started – the one that spelled housing market crash from rising mortgage rates. Now we’re back to worrying about why longer term rates are so much lower than short term rates – one warning sign of a possible looming recession.
The Dow was up 2.09% in August, while the S&P500 climbed 2.38% and the smaller cap Russell 2000 index rose just under 3%. The tech and growth rebound was stronger – the Nasdaq was up 4.41% for the month. But then, the Nasdaq fell harder on the way down. Bonds were strong as well, with longer term bonds climbing 2.8% and the Vanguard Total Bond Index rising 1.64%.
Our Conservative portfolio rose 1.46% in August. With bonds and stocks up, it was hard to lose money investing last month. None of the funds in our Conservative Portfolio posted losses in August – though Bridgeway Balanced eked out only a slim .08% gain – odd given the returns in the market. There must have been some losses on written option contracts that were worthless earlier in the month, but with hot stock returns became liabilities to the fund as the month wore on.
Investors continue to like junk bonds, even though many are concerned about a slowing economy – if not a full bore recession. Generally speaking, lower credit quality debt gets hurt going into a weak economy because as times get tough, those with lower prospects of repaying debts can slip into default. Vanguard High Yield Corporate (VWEHX) rose 1.44% in August.
Telecom stocks have been hot for most of the year and last month was no exception. Vanguard Telecom ETF (formerly knows as Vanguard Telecom VIPER) rose 3.42% and is up 8.72% over the last three months. As this fund was in our Hotlist for 2006, we’re doubly pleased.
Healthcare stocks have been as strong as telecom stocks in recent months. We’re glad to see our chosen sectors outperforming the market. Healthcare Select SPDR was up 3% in August and is up 8.56% over the last three months. Stocks like Merck and Pfizer are near 52 week highs and way off the lows hit when lawsuit and revenue related fears were peaking.
August was a surprisingly good month on Wall Street. A solid chunk of the losses incurred in the stock market from earlier in the year was erased. Factor in gains posted so far in September and the media is once again back to reminding us how close we are to an all time high in the Dow. Interest rates continued lower, and are now almost back to where they were before the big scary move up in rates started – the one that spelled housing market crash from rising mortgage rates. Now we’re back to worrying about why longer term rates are so much lower than short term rates – one warning sign of a possible looming recession.
The Dow was up 2.09% in August, while the S&P500 climbed 2.38% and the smaller cap Russell 2000 index rose just under 3%. The tech and growth rebound was stronger – the Nasdaq was up 4.41% for the month. But then, the Nasdaq fell harder on the way down. Bonds were strong as well, with longer term bonds climbing 2.8% and the Vanguard Total Bond Index rising 1.64%.
Our Aggressive Growth portfolio rose 2.85% in August. With bonds and stocks up during the month, it was hard to lose money investing.
Telecom stocks have been hot for most of the year and last month was no exception. Vanguard Telecom ETF (formerly knows as Vanguard Telecom VIPER) rose 3.42% and is up 8.72% over the last three months. As this fund was in our Hotlist for 2006, we’re doubly pleased.
Healthcare stocks have been as strong as telecom stocks in recent months. We’re glad to see our chosen sectors outperforming the market. Healthcare Select SPDR was up 3% in August and is up 8.56% over the last three months. Stocks like Merck and Pfizer are near 52 week highs and way off the lows hit when lawsuit and revenue related fears were peaking.
Mega cap stocks continue to outpace the market. Bridgeway Blue Chip 35 was up 3.03% in August. There was strength in many large caps ranging from big techs to drug companies.
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August was a surprisingly good month on Wall Street. A solid chunk of the losses incurred in the stock market from earlier in the year was erased. Factor in gains posted so far in September and the media is once again back to reminding us how close we are to an all time high in the Dow. Interest rates continued lower, and are now almost back to where they were before the big scary move up in rates started – the one that spelled housing market crash from rising mortgage rates. Now we’re back to worrying about why longer term rates are so much lower than short term rates – one warning sign of a possible looming recession.
The Dow was up 2.09% in August, while the S&P500 climbed 2.38% and the smaller cap Russell 2000 index rose just under 3%. The tech and growth rebound was stronger – the Nasdaq was up 4.41% for the month. But then, the Nasdaq fell harder on the way down. Bonds were strong as well, with longer term bonds climbing 2.8% and the Vanguard Total Bond Index rising 1.64%.
Our Conservative portfolio rose 1.46% in August. With bonds and stocks up, it was hard to lose money investing last month. None of the funds in our Conservative Portfolio posted losses in August – though Bridgeway Balanced eked out only a slim .08% gain – odd given the returns in the market. There must have been some losses on written option contracts that were worthless earlier in the month, but with hot stock returns became liabilities to the fund as the month wore on.
Investors continue to like junk bonds, even though many are concerned about a slowing economy – if not a full bore recession. Generally speaking, lower credit quality debt gets hurt going into a weak economy because as times get tough, those with lower prospects of repaying debts can slip into default. Vanguard High Yield Corporate (VWEHX) rose 1.44% in August.
Telecom stocks have been hot for most of the year and last month was no exception. Vanguard Telecom ETF (formerly knows as Vanguard Telecom VIPER) rose 3.42% and is up 8.72% over the last three months. As this fund was in our Hotlist for 2006, we’re doubly pleased.
Healthcare stocks have been as strong as telecom stocks in recent months. We’re glad to see our chosen sectors outperforming the market. Healthcare Select SPDR was up 3% in August and is up 8.56% over the last three months. Stocks like Merck and Pfizer are near 52 week highs and way off the lows hit when lawsuit and revenue related fears were peaking.
August was a surprisingly good month on Wall Street. A solid chunk of the losses incurred in the stock market from earlier in the year was erased. Factor in gains posted so far in September and the media is once again back to reminding us how close we are to an all time high in the Dow. Interest rates continued lower, and are now almost back to where they were before the big scary move up in rates started – the one that spelled housing market crash from rising mortgage rates. Now we’re back to worrying about why longer term rates are so much lower than short term rates – one warning sign of a possible looming recession.
The Dow was up 2.09% in August, while the S&P500 climbed 2.38% and the smaller cap Russell 2000 index rose just under 3%. The tech and growth rebound was stronger – the Nasdaq was up 4.41% for the month. But then, the Nasdaq fell harder on the way down. Bonds were strong as well, with longer term bonds climbing 2.8% and the Vanguard Total Bond Index rising 1.64%.
Our Aggressive Growth portfolio rose 2.85% in August. With bonds and stocks up during the month, it was hard to lose money investing.
Telecom stocks have been hot for most of the year and last month was no exception. Vanguard Telecom ETF (formerly knows as Vanguard Telecom VIPER) rose 3.42% and is up 8.72% over the last three months. As this fund was in our Hotlist for 2006, we’re doubly pleased.
Healthcare stocks have been as strong as telecom stocks in recent months. We’re glad to see our chosen sectors outperforming the market. Healthcare Select SPDR was up 3% in August and is up 8.56% over the last three months. Stocks like Merck and Pfizer are near 52 week highs and way off the lows hit when lawsuit and revenue related fears were peaking.
Mega cap stocks continue to outpace the market. Bridgeway Blue Chip 35 was up 3.03% in August. There was strength in many large caps ranging from big techs to drug companies.