12
Stocks rallied despite mixed economic data in June.
Auto sales were encouraging, while gross domestic
product in the first quarter turned out to be worse
than previously thought. However, the Fed carried the
day by declaring it would stay the course on unwind-
ing the government’s bond-buying program while
eventually raising short-term interest rates.
As in May, U.S. stocks posted positive gains across
the board in June, with the S
&
P
500
rising
2
.
1%
. In
contrast to May, though, small-cap growth stocks led
the way. The Russell
2000
Growth Index returned
6
.
2%
, spurred by biotech holdings like
Indenix Phar-
maceuticals
IDIX
. Its shares soared nearly
300%
on news that
Merck
MRK
plans to buy the firm for
its hepatitis C drug therapies. That was one of a
number of acquisitions, fueled by high stock prices,
cash-heavy balance sheets, and cheap financing.
Gold prices rose as investors worried about instability
in the Middle East. That boosted shares of mining
firms, which are highly leveraged to commodity prices
like gold. As a result, the typical equity precious-
metals fund gained
17
.
9%
in June, nearly
3
times the
average energy limited partnership fund’s advance,
which benefited from a surge in oil prices.
The
MSCI
Emerging Markets Index outperformed the
MSCI
EAFE
Index for the second-straight month.
The former’s
6
.
1%
year-to-date gain now leads the
latter’s by
1
.
4
percentage points. Russian equities
slowed somewhat, but thanks in part to currency tail-
winds, the
MSCI
Russia Index returned
5
.
4%
in June.
Emerging-markets bond funds led the way for the
month in fixed income, but their
6
.
5%
average year-
to-date return is still only about half that of the
long-government bond peer norm.
Vanguard Long-
Term Treasury
’s
VUSTX
12
.
3%
gain in
2014
lands
in the middle of the latter category’s pack.
œ
Contact Alec Lucas at
Total Return
%
Through
A N N U A L I Z E D
06-30-14
1Mo YTD 3Yr
5Yr
10Yr
Benchmark Performance
Stocks Surge in June
Market Overview
|
Alec Lucas
Large Growth
2.5 4.7 14.4 17.6 7.8
Large Blend
2.1 6.4 14.9 17.5 7.3
Large Value
2.2 7.0 14.9 17.3 7.3
Mid-Cap Growth
4.0 4.0 12.6 19.0 8.8
Mid-Cap Blend
3.4 6.5 14.1 19.8 8.7
Mid-Cap Value
3.3 7.8 15.3 20.5 9.0
Small Growth
5.9 0.9 12.7 19.9 8.7
Small Blend
4.4 3.8 14.2 19.9 8.7
Small Value
4.0 4.7 14.5 20.1 8.8
Aggressive Allocation
2.0 5.8 10.5 14.2 6.7
Conservative Allocation
1.0 4.9 6.5 9.5 5.4
Moderate Allocation
1.5 5.4 9.6 12.6 6.4
Communications
0.7 2.6 10.1 14.5 6.7
Financial
2.4 3.1 13.9 14.2 3.4
Global Real Estate
1.5 10.5 8.6 15.3 7.5
Health
5.1 11.4 22.8 22.1 11.3
Natural Resources
4.5 11.3 2.4 11.9 10.6
Equity Precious Metals
17.9 27.5 -19.3 -3.1 5.9
Real Estate
1.1 16.6 10.9 22.6 8.9
Technology
4.5 7.1 13.0 18.0 8.6
Utilities
4.2 16.4 14.4 15.8 10.8
S&P 500
2.1 7.1 16.5 18.7 7.7
S&P MidCap 400
4.2 7.3 15.0 21.7 10.5
Russell 2000
5.3 3.3 14.6 20.2 8.7
Diversified Pacific/Asia
2.8 3.2 5.4 10.0 7.4
Diversified Emerging Mkts
2.4 5.8 0.1 9.1 11.2
Europe Stock
-0.4 3.2 8.8 13.7 8.6
Foreign Large Blend
1.2 3.8 6.6 11.3 6.8
Foreign Large Growth
1.5 3.1 6.9 12.1 7.2
Foreign Large Value
1.1 5.0 7.0 11.0 6.4
Foreign Small/Mid Growth
1.7 4.3 10.1 17.0 10.1
Foreign Small/Mid Value
1.8 6.1 8.5 14.3 8.4
World Stock
2.0 5.7 10.6 14.8 7.8
MSCI EAFE
0.9 4.4 7.9 11.7 6.7
MSCI World
1.8 6.2 11.8 15.0 7.2
MSCI Emerging Markets
2.4 4.2 -1.3 8.0 11.1
MSCI Europe
-0.1 5.2 8.8 13.3 7.5
MSCI Latin America
3.9 5.3 -8.9 2.5 12.2
MSCI Pacific
2.9 2.5 6.8 9.7 5.8
High Yield Bond
0.8 4.8 8.2 12.6 7.6
Inflation-Protected Bond
0.3 4.9 2.6 4.9 4.7
Intermediate-Term Bond
0.2 4.1 4.1 6.0 4.8
Muni National Long
-0.1 6.9 5.6 6.1 4.3
World Bond
0.7 4.9 3.4 6.0 5.3
BarCap US Agg Bond TR USD -0.1 3.8 3.6 4.5 4.7
BofAML US HY Master II TR 0.8 5.6 9.3 13.9 8.9
BarCap Municipal TR USD
0.1 6.0 5.4 5.8 5.0
