12
After giving up ground in July, U.S. stocks bounced
back nicely, reaching new all-time highs in August
as the S
&
P
500
passed
2
,
000
for the first time.
Economic news was generally positive, as housing
data improved and the Purchasing Managers’ Index,
an indication of health in the manufacturing sector,
reached its highest level in more than four years.
Most companies reporting second-quarter earnings
beat estimates, too.
Domestic equities performed well across the market-
cap spectrum, with large-, mid-, and small-cap
stocks all gaining roughly
4%
or more. Growth out-
performed value, as growth-heavy sectors like
biotech and specialty retail rallied.
T. Rowe Price
Health Sciences
PRHSX
, which holds about
a third of its assets in biotech names, prospered.
The telecom and energy sectors, which are made
up mostly of value stocks, underperformed the
broad market.
The
MSCI
Emerging Markets Index rose more than
2%
,
outperforming foreign-developed stocks for the
fourth straight month. Latin America stocks led the
way, with the
MSCI
Brazil Index gaining more than
11%
.
Vanguard Emerging Markets Stock Index
VEMAX
, which holds roughly
11%
of its portfolio
in Brazil, was the best-performing international fund
in the
500
. Meanwhile, the
MSCI
Japan Index lost
more than
2%
, partly because the yen depreciated.
Most bond sectors were up in August, with long-
duration bonds leading the pack as yields fell. The
10
-year Treasury yield tumbled to year-to-date lows,
finishing the month at
2
.
35%
. The Barclays U.S.
Government Long Index returned nearly
4%
, while
high-yield and investment-grade corporate-bond
indexes gained roughly
1
.
5%
. Treasury Inflation-
Protected Securities and foreign-bond benchmarks
posted small gains during the month.
œ
Total Return
%
Through
A N N U A L I Z E D
08-31-14
1Mo YTD 3Yr
5Yr
10Yr
Benchmark Performance
An All-Time High for the S&P 500
Market Overview
|
Leo Acheson
Large Growth
4.2 7.4 18.6 16.1 8.7
Large Blend
3.7 8.5 19.1 15.4 7.9
Large Value
3.6 8.7 19.2 15.0 7.6
Mid-Cap Growth
4.8 5.2 17.4 17.0 9.9
Mid-Cap Blend
4.3 7.2 19.1 17.1 9.5
Mid-Cap Value
4.2 8.7 20.3 17.2 9.5
Small Growth
4.6 -0.5 17.3 17.5 9.7
Small Blend
4.4 2.5 18.5 16.7 9.2
Small Value
4.3 3.6 18.8 16.3 9.2
Aggressive Allocation
2.8 6.7 13.7 12.1 7.1
Conservative Allocation
1.6 5.4 7.6 8.1 5.5
Moderate Allocation
2.4 6.4 11.9 11.0 6.7
Communications
0.4 2.0 12.9 12.9 7.4
Financial
3.1 4.0 19.2 10.9 3.5
Global Real Estate
1.4 12.6 11.9 12.1 7.1
Health
6.4 17.2 29.1 21.5 12.6
Natural Resources
2.0 9.5 4.8 9.4 10.2
Equity Precious Metals
1.7 26.7 -22.3 -4.4 5.3
Real Estate
2.8 19.7 13.6 17.9 8.4
Technology
4.5 10.0 18.1 16.2 10.6
Utilities
4.4 14.9 14.9 13.8 10.3
S&P 500
4.0 9.8 20.5 16.8 8.3
S&P MidCap 400
5.1 7.9 19.8 18.8 11.1
Russell 2000
4.8 1.7 19.0 17.0 9.4
Diversified Pacific/Asia
0.8 5.7 9.1 8.5 7.8
Diversified Emerging Mkts
2.5 9.0 4.2 7.5 11.2
Europe Stock
0.4 -0.8 12.5 9.6 8.5
Foreign Large Blend
0.7 2.0 10.0 8.1 6.9
Foreign Large Growth
1.2 1.6 9.7 9.4 7.4
Foreign Large Value
0.4 2.8 10.5 7.6 6.4
Foreign Small/Mid Growth
1.0 2.4 12.2 13.9 10.4
Foreign Small/Mid Value
0.4 3.4 11.3 10.2 8.3
World Stock
2.5 5.8 14.0 12.3 8.1
MSCI EAFE
0.2 1.9 11.2 8.1 6.7
MSCI World
2.2 6.8 15.5 12.3 7.6
MSCI Emerging Markets
2.8 8.7 3.7 6.9 11.6
MSCI Europe
0.7 1.4 12.8 8.9 8.1
MSCI Latin America
7.8 14.5 -3.3 2.1 12.3
MSCI Pacific
-0.4 3.0 9.1 7.6 6.4
High Yield Bond
1.3 4.8 9.5 10.9 7.3
Inflation-Protected Bond
0.3 5.1 1.5 4.6 4.4
Intermediate-Term Bond
1.0 4.8 3.7 5.3 4.6
Muni National Long
1.5 8.6 5.4 5.6 4.2
World Bond
0.7 5.1 2.8 5.0 5.1
BarCap US Agg Bond TR USD 1.1 4.7 2.8 4.2 4.5
BofAML US HY Master II TR 1.5 5.8 10.4 12.2 8.6
BarCap Municipal TR USD
1.2 7.5 4.9 5.4 4.8
