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U.S. stocks continued to advance in May. The S&P
500 rose 1.8% and the Russell 2000 Index rose 2.2%
despite the increasing likelihood that the Federal
Reserve will raise short-term interest rates as early as
the June policy meeting. Economic data continue to
show signs of strength, and the Consumer Price Index—
which measures the rate of inflation—is increasing.
Thus, all eyes will be on the Fed’s mid-June meetings.
On the flip side, overseas markets didn’t fare well in May.
The MSCI EAFE Index fell 0.9% and is in the red for
the year. In Europe, Austrian and Portuguese stocks fell
6.4% and 2.9%, respectively. In Asia, Singaporean
stocks fell 4.4% and Japanese stocks fell 1.0%.
Longleaf
Partners International
LLINX, with a Morningstar
Analyst Rating of Neutral, fell 1.9%, while Silver-rated
FMI
International
FMIJX rose 1.4%. Emerging-markets
stocks fell 3.7%, driven by Brazil’s 13.7% loss, Turkey’s
13.3% loss, and South Africa’s 9.2% loss. Bronze-rated
DFA Emerging Markets Value
DFEVX fell 6.5%.
Brent crude prices briefly hit $50 per barrel in May for the
first time since November 2015. Brent crude ended
the month at $49.69, up 3% from its price at the end of
April and up 78% from its January low. Energy stocks,
however, fell slightly in May—Neutral-rated
Vanguard
Energy
VGENX fell 1.4%.
The top-performing sector in May was technology, after
being the worst-performing sector in April. Tech con-
tributors include semiconductor firms
NVIDIA
NVDA and
Applied Materials
AMAT—both rose more than 19%.
After falling sharply in April,
Apple
AAPL and
Alphabet
GOOG both rebounded more than 6% in May. The
financials sector also posted solid returns in the quarter,
as insurance firms
Chubb
CB and
Markel
MKL
rose at least 6% and banking firms
SunTrust
STI and
Comerica
CMA rose at least 5%.
K
Contact Andrew Daniels at
andrew.daniels@morningstar.comTotal Return
%
Through
A N N U A L I Z E D
05-31-16
1Mo YTD 3Yr
5Yr
10Yr
Benchmark Performance
Stocks and Oil Prices Rally
Market Overview
|
Andrew Daniels
Large Growth
2.2 -0.5 10.5 10.0 7.4
Large Blend
1.5 2.4 9.0 9.8 6.4
Large Value
1.1 4.0 7.6 9.0 5.5
Mid-Cap Growth
2.2 0.8 8.1 7.8 6.8
Mid-Cap Blend
1.4 3.5 7.4 8.0 6.5
Mid-Cap Value
1.6 5.7 7.8 8.5 6.6
Small Growth
2.5 -0.6 6.6 6.9 6.5
Small Blend
1.6 3.4 6.2 7.2 5.9
Small Value
0.9 5.2 5.9 7.4 5.8
Allocation--70% to 85% Equity 0.8 2.4 5.3 5.7 4.7
Allocation--30% to 50% Equity 0.4 3.3 3.3 4.3 4.5
Allocation--50% to 70% Equity 0.7 2.7 5.1 5.8 5.2
Communications
1.0 5.9 7.9 6.4 5.1
Financial
1.6 -0.3 6.3 8.0 1.7
Global Real Estate
-0.3 3.6 4.5 5.3 3.3
Health
3.0 -7.9 15.2 15.6 11.4
Natural Resources
-2.8 11.9 -5.7 -5.7 -0.4
Equity Precious Metals
-10.7 59.6 -5.0 -15.6 -2.0
Real Estate
2.0 4.3 9.2 9.2 6.3
Technology
4.8 0.1 13.1 9.1 8.4
Utilities
1.4 13.1 8.7 8.7 7.2
S&P 500
1.8 3.6 11.1 11.7 7.4
S&P MidCap 400
2.3 7.5 9.7 10.0 8.5
Russell 2000
2.3 2.3 6.9 7.9 6.3
Diversified Pacific/Asia
0.6 0.0 2.7 3.1 3.1
Diversified Emerging Mkts
-2.4 2.5 -4.6 -4.2 2.8
Europe Stock
0.2 -0.8 2.9 2.8 2.9
Foreign Large Blend
-0.1 -0.5 1.6 1.3 1.7
Foreign Large Growth
0.6 -0.3 2.9 2.6 3.0
Foreign Large Value
-0.7 0.0 1.0 0.8 0.8
Foreign Small/Mid Growth
1.5 0.1 5.4 5.0 4.7
Foreign Small/Mid Growth
1.5 0.1 5.4 5.0 4.7
Foreign Small/Mid Value
0.1 2.1 4.1 2.7 2.9
MSCI World
0.6 1.8 6.5 6.5 4.5
MSCI Emerging Markets
-3.7 2.9 -4.9 -5.4 2.5
MSCI EAFE
-0.1 -0.6 2.0 1.9 1.7
MSCI Europe
-0.6 -0.7 1.8 1.6 2.0
MSCI Latin America
-11.1 11.4 -16.5 -14.6 -1.1
MSCI Pacific
-1.4 -1.6 2.2 3.3 1.8
High Yield Bond
0.6 5.7 1.8 4.2 5.9
Inflation-Protected Bond
-0.7 3.3 -0.5 1.3 3.5
Intermediate-Term Bond
0.0 3.2 2.3 3.2 4.6
Muni National Long
0.4 2.8 3.8 5.5 4.4
World Bond
-1.2 4.3 0.5 1.4 4.1
BarCap US Agg Bond TR USD 0.0 3.3 2.9 3.2 4.8
BofAML US HY Master II TR 0.7 8.1 2.9 5.3 7.3
BarCap Municipal TR USD
0.3 2.7 4.0 5.1 4.9