494 / 772
12
Stocks rebounded nicely during October, amid strong
macroeconomic data and mostly solid corporate
earnings reports. U.S. stocks rose between
8%
and
8
.
5%
in October. Foreign developed-markets stocks
returned
7
.
8%
, and emerging-markets stocks rose
more than
7%
. Although the U.S. Federal Reserve left
interest rates unchanged, it clearly left open the
possibility of a rate hike on the table for its December
meeting, which was a clear sign of its confidence
in the U.S. economy. However, the United States was
only part of the story behind October’s rally. Central
banks overseas provided some stimuli, including
China’s central bank enacting an interest-rate cut and
European Central Bank president Mario Draghi hinting
at more quantitative easing.
Energy prices whipsawed during October, with the Brent
Crude oil spot price finishing the month higher at
$49
.
50
a barrel after a September month-end level of
$47
a barrel. That was good news for the battered
energy sector, with energy funds rising about
11
.
5%
for the month. Higher energy prices helped to fuel
basic-materials funds, which rose about
12
.
8%
for the
month. While all U.S. equity sectors rose for the
month, the most defensive sectors performed the
worst, with utilities funds up
2
.
0%
.
China stocks were among the biggest gainers, rally-
ing
9
.
1%
. That helped
Matthews China
MCHFX
,
which has a Morningstar Analyst Rating of Bronze,
to rise
10
.
6%
. Other big winners were German
stocks, which surged about
10
.
6%
, and Japanese
firms, which rose about
10
.
1%
. By contrast, Indian
stocks lagged other emerging markets during October,
returning
1
.
6%
. Even so, Bronze-rated
Matthews
India
MINDX
rose about
1
.
5%
.
The U.S. bond market was flat in October.
K
Contact Robert at
robert.goldsborough@morningstar.comTotal Return
%
Through
A N N U A L I Z E D
10-31-15
1Mo YTD 3Yr
5Yr
10Yr
Benchmark Performance
A Powerful Rally in October
Market Overview
|
Robert Goldsborough
Large Growth
7.9 4.7 16.6 13.4 7.9
Large Blend
7.5 0.6 14.6 12.5 7.0
Large Value
7.3 -1.7 13.1 11.7 6.2
Mid-Cap Growth
5.2 0.9 14.8 12.0 8.0
Mid-Cap Blend
5.6 -1.8 13.9 11.6 7.2
Mid-Cap Value
6.2 -1.9 14.4 11.9 7.5
Small Growth
4.5 -0.9 13.8 12.1 7.9
Small Blend
5.7 -2.4 13.1 11.4 7.0
Small Value
5.7 -3.6 12.5 10.6 6.8
Aggressive Allocation
5.7 -0.5 9.5 8.3 5.5
Conservative Allocation
2.9 -0.4 4.3 5.0 4.6
Moderate Allocation
4.6 0.0 8.3 7.8 5.7
Communications
8.2 3.3 10.0 8.2 5.1
Financial
4.6 0.3 13.7 10.4 2.5
Global Real Estate
5.3 1.2 7.0 7.1 4.8
Health
5.4 5.2 26.1 21.4 12.2
Natural Resources
9.5 -14.4 -5.6 -2.4 1.6
Equity Precious Metals
7.9 -16.7 -30.2 -21.3 -1.8
Real Estate
5.7 1.4 10.9 11.5 7.0
Technology
9.4 5.1 18.7 12.0 9.1
Utilities
3.4 -7.2 8.2 9.0 6.9
S&P 500
8.5 2.7 16.2 14.2 7.8
S&P MidCap 400
5.6 0.7 15.5 13.4 9.1
Russell 2000
5.6 -2.6 13.9 12.1 7.6
Diversified Pacific/Asia
6.6 1.8 7.6 4.4 4.9
Diversified Emerging Mkts
6.0 -9.3 -2.2 -2.8 5.1
Europe Stock
5.3 4.4 9.2 5.9 5.5
Foreign Large Blend
6.5 1.1 6.6 3.8 3.9
Foreign Large Growth
6.6 2.9 7.5 4.9 4.9
Foreign Large Value
6.2 0.1 6.0 3.4 2.9
Foreign Small/Mid Growth
4.9 6.3 9.7 7.3 6.9
Foreign Small/Mid Value
5.1 3.8 8.8 5.3 5.0
World Stock
6.7 0.7 10.5 8.0 5.9
MSCI World
7.9 1.4 11.6 9.1 5.8
MSCI Emerging Markets
6.4 -10.6 -3.5 -3.6 4.7
MSCI EAFE
6.6 2.1 7.7 4.6 3.9
MSCI Europe
7.2 1.6 8.0 4.8 4.4
MSCI Latin America
5.9 -26.4 -18.1 -15.0 0.1
MSCI Pacific
9.1 3.1 8.0 4.8 3.5
High Yield Bond
2.3 0.1 3.4 5.2 6.2
Inflation-Protected Bond
0.5 -1.2 -2.5 1.2 3.3
Intermediate-Term Bond
0.3 0.6 1.5 3.1 4.4
Muni National Long
0.4 1.8 2.7 4.4 4.2
World Bond
0.9 -2.7 -0.7 1.2 4.1
BarCap US Agg Bond TR USD 0.1 1.1 1.7 2.9 4.5
BofAML US HY Master II TR 2.7 0.1 4.1 6.0 7.5
BarCap Municipal TR USD
0.4 2.2 2.9 4.3 4.7