The big gains in foreign markets doesn’t quite wipe out last year’s losses, but it’s a good start to the year. The bond market highlights this re-embracing of risk. Higher risk bonds topped the list in January with emerging market bond funds up around 5%, followed by high yield bonds up over 3%. The safest government bond funds were roughly flat to slightly up.
Our Government Bond fund American Century Government Bond (CPTNX) increased 0.48% in January, worse than the bond market by 0.4%. The US dollar slipped in January as investor’s regained confidence in foreign markets and currencies.
Our harder hit funds from last year – foreign and financials – did the best in January but safer stock funds that outperformed in 2011, notably Utilities, were actually down. Our Utilities fund American Century Utility Income (BULIX) fell 2.90% in January, underperforming the S&P 500 by 7.4%.
Vanguard Long-Term Bond Index ETF (BLV) climbed 2.16% for the month, better than the bond market by 1.3%.
Our Mortgage Bond fund Doubleline Total Return Bond (DLTNX) climbed 1.80% in January, beating the bond market by 0.9% as mortgage bonds may be getting a little too richly priced.
January’s Benchmark Laggers:
Utilities fund American Century Utility Income (BULIX) dropped 2.90% in January, worse than the S&P 500 by 7.4% while Vanguard Telecom Services ETF (VOX) fell 1.05%.
Our alternative fund PowerShares DB US Dollar Index (UUP) fell 1.56% last month while Vanguard Extended Duration Treasury (EDV) dropped 1.53%, worse than the bond market by 2.4%
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The uncertainty and downright fear from 2011 apparently vanished in January, continuing a late December rally in riskier investments.
For January, our Conservative portfolio was up 1.88% while our Aggressive portfolio climbed 3.36%. Benchmark Vanguard index funds for the month: Vanguard 500 Index (VFINX) up 4.46%, Vanguard Total Bond Market (VBMFX) up 0.87%, Vanguard International Index (VTMGX) up 5.82%, Vanguard Emerging Markets Stock Index (VEIEX) up 11.12%.
The big gains in foreign markets doesn’t quite wipe out last year’s losses, but it’s a good start to the year. The bond market highlights this re-embracing of risk. Higher risk bonds topped the list in January with emerging market bond funds up around 5%, followed by high yield bonds up over 3%. The safest government bond funds were roughly flat to slightly up.
Our Government Bond fund American Century Government Bond (CPTNX) increased 0.48% in January, worse than the bond market by 0.4%. The US dollar slipped in January as investor’s regained confidence in foreign markets and currencies.
Our harder hit funds from last year – foreign and financials – did the best in January but safer stock funds that outperformed in 2011, notably Utilities, were actually down. Our Utilities fund American Century Utility Income (BULIX) fell 2.90% in January, underperforming the S&P 500 by 7.4%.
January’s Notable Performers:
Royce Financial Services Fund (RYFSX) rose 7.01% in January, better than the S&P 500 by 2.5%.
Our Large Cap Growth fund PRIMECAP Odyssey Growth (POGRX) rose 6.96%.
Scout International Discovery (UMBDX) gained 6.53% in January while Vanguard Europe Pacific ETF (VEA) rose 5.62%.
Vanguard Long-Term Bond Index ETF (BLV) climbed 2.16% for the month, better than the bond market by 1.3%.
Our Mortgage Bond fund Doubleline Total Return Bond (DLTNX) climbed 1.80% in January, beating the bond market by 0.9% as mortgage bonds may be getting a little too richly priced.
January’s Benchmark Laggers:
Utilities fund American Century Utility Income (BULIX) dropped 2.90% in January, worse than the S&P 500 by 7.4% while Vanguard Telecom Services ETF (VOX) fell 1.05%.
Our alternative fund PowerShares DB US Dollar Index (UUP) fell 1.56% last month while Vanguard Extended Duration Treasury (EDV) dropped 1.53%, worse than the bond market by 2.4%