Investment grade bonds were flat while stocks continue to rise as investors continued the move back into riskier assets. Our returns were between the two.
Typically emerging market stocks rebound faster than the US stock market when the market heads back up (like we saw in January) but there seems to be some fears around that the emerging markets era of outperformance is waning and the US may be more insulated than faster growing markets from Europe’s ongoing troubles.
European and technology stocks rose the most, both up just under 7%, followed closely by financials and growth stocks in general. Safer stocks that did well last year, notable healthcare and real estate, delivered relatively lackluster returns of around 2%. The only area of weakness was real estate funds, down 0.71% in February. Rents are doing well, but home prices are slipping anew and are at post 2006 lows – significant given how low mortgage rates are today. Higher risk bonds did well in February. Funds investing in emerging markets and high yield bonds were strong, up 2.84% and 2.16% respectively.
Our February Benchmark Beaters:
Vanguard European ETF (VGK) rose 5.42% in February, ahead of the benchmark S&P 500 by 1.1%.
With a dose of higher risk bonds, Investment Grade Bond fund Metropolitan West Total Return (MWTRX) increased 0.73% in February, better than the bond market by 0.8%.
Scout International Discovery (UMBDX) climbed 4.90% in February, better than the S&P 500 by 0.6% as foreign markets recovered. Vanguard Europe Pacific ETF (VEA) climbed 4.88%.
Last Month's Misses:
Our alternative fund PowerShares DB US Dollar Index (UUP) slipped 0.72% in February, worse than the S&P 500 by 5% as the US dollar lost some safe haven support.
Health Care Select SPDR (XLV) increased 1.06% in February, while American Century Utility Income (BULIX) rose just 1.37% as investors favored riskier stocks.
PRIMECAP Odyssey Growth (POGRX) rose a mere 1.88% in February, 2.4% worse than the S&P 500 and a poor showing in a month that was good for tech and growth in general. The fund is very heavy in healthcare including biotech, with some underperformers for the year.
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Investment grade bonds were flat while stocks continue to rise as investors continued the move back into riskier assets. Our returns were between the two.
In February, our conservative portfolio was up 1.39% while our aggressive portfolio was up 2.31%. The benchmark Vanguard 500 (VFINX) fund delivered a 4.31% return for the month while Vanguard Total Bond Index (VBMFX) was down 0.05%. Foreign stocks, as measured by Vanguard Tax-Managed International (VTMGX), were up 5.12% while emerging market stocks, as measured by Vanguard Emerging Markets Stock Index (VEIEX), gained 5.56%.
Typically emerging market stocks rebound faster than the US stock market when the market heads back up (like we saw in January) but there seems to be some fears around that the emerging markets era of outperformance is waning and the US may be more insulated than faster growing markets from Europe’s ongoing troubles.
European and technology stocks rose the most, both up just under 7%, followed closely by financials and growth stocks in general. Safer stocks that did well last year, notable healthcare and real estate, delivered relatively lackluster returns of around 2%. The only area of weakness was real estate funds, down 0.71% in February. Rents are doing well, but home prices are slipping anew and are at post 2006 lows – significant given how low mortgage rates are today. Higher risk bonds did well in February. Funds investing in emerging markets and high yield bonds were strong, up 2.84% and 2.16% respectively.
Our February Benchmark Beaters:
Vanguard European ETF (VGK) rose 5.42% in February, ahead of the benchmark S&P 500 by 1.1%.
Our Mortgage Bond fund Doubleline Total Return Bond (DLTNX) increased 0.94% in February, better 1% better than the bond market benchmark.
With a dose of higher risk bonds, Investment Grade Bond fund Metropolitan West Total Return (MWTRX) increased 0.73% in February, better than the bond market by 0.8%.
Royce Financial Services Fund (RYFSX) climbed 4.91% in February, beating the S&P 500 by 0.6% as financials continued to rebound.
Scout International Discovery (UMBDX) climbed 4.90% in February, better than the S&P 500 by 0.6% as foreign markets recovered. Vanguard Europe Pacific ETF (VEA) climbed 4.88%.
Last Month's Misses:
Our alternative fund PowerShares DB US Dollar Index (UUP) slipped 0.72% in February, worse than the S&P 500 by 5% as the US dollar lost some safe haven support.
Health Care Select SPDR (XLV) increased 1.06% in February, while American Century Utility Income (BULIX) rose just 1.37% as investors favored riskier stocks.
PRIMECAP Odyssey Growth (POGRX) rose a mere 1.88% in February, 2.4% worse than the S&P 500 and a poor showing in a month that was good for tech and growth in general. The fund is very heavy in healthcare including biotech, with some underperformers for the year.