63 / 708
12
Stocks and oil prices plummeted in January
2016
.
Slowing growth in China underpinned both moves.
There, investors were surprised by an unexpectedly
large decrease in the Caixin Purchasing Manager Index
near the start of the month. Not surprisingly, inves-
tors have flocked to Treasury bonds, and credit spreads
have widened. Also not surprisingly, emerging
markets—which include both oil-exporting geogra-
phies and China—again suffered meaningfully
in January, with the
MSCI
Emerging Markets Index
declining more than
6
.
5%
for the month. The S
&
P
500
slid almost
5%
in January.
Some U.S. economic data also caused investors heart-
burn. Industrial production and retail sales numbers
disappointed and showed outright declines, while the
Consumer Price Index posted a modest deflationary
report. While most economists didn’t in turn make
major downward revisions to their full-year gross do-
mestic product forecasts, the negative economic
data certainly did nothing to calm anxious investors.
Within emerging markets, Chinese funds felt the
greatest pain in January, declining
13%
.
Matthews
China
MCHFX
, which has a Morningstar Analyst
Rating of Bronze, fared worse, sliding almost
15%
.
U.S. crude-oil prices continued to fall, declining
9
.
3%
in January. Late in the month, oil prices rose on
prospects of an output cut after hitting a bottom
early in January. As a result, energy wasn’t the month’s
worst-performing sector (although energy funds
still were down about
5%
for the month). The health-
care sector did the worst in January, with healthcare
funds falling
13
.
8%
. Gold-rated
Vanguard Health Care
VGHCX
held up better than the sector but still was
down
9%
for the month. Financials funds also struggled
(down
8
.
7%
), as did technology funds (down
8
.
2%
),
and industrial funds (down
6
.
9%
).
K
Contact Robert at
robert.goldsborough@morningstar.comTotal Return
%
Through
A N N U A L I Z E D
01-31-16
1Mo YTD 3Yr
5Yr
10Yr
Benchmark Performance
A Brutal Start to 2016
Market Overview
|
Robert Goldsborough
Large Growth
-7.1 -7.1 10.7 9.6 6.2
Large Blend
-5.5 -5.5 9.2 9.0 5.5
Large Value
-5.3 -5.3 7.6 8.1 4.7
Mid-Cap Growth
-8.4 -8.4 7.4 7.4 5.5
Mid-Cap Blend
-6.3 -6.3 6.8 7.3 5.3
Mid-Cap Value
-6.4 -6.4 6.7 7.1 5.3
Small Growth
-9.8 -9.8 6.3 7.0 5.2
Small Blend
-7.4 -7.4 5.4 6.4 4.6
Small Value
-6.7 -6.7 4.8 6.1 4.5
Aggressive Allocation
-4.7 -4.7 4.7 5.3 3.8
Conservative Allocation
-1.8 -1.8 1.9 3.7 3.8
Moderate Allocation
-3.4 -3.4 4.6 5.5 4.6
Communications
-2.2 -2.2 6.6 6.4 3.7
Financial
-8.7 -8.7 6.3 6.2 1.0
Global Real Estate
-4.6 -4.6 1.6 4.9 2.8
Health
-13.8 -13.8 17.7 17.5 10.1
Natural Resources
-6.3 -6.3 -11.8 -8.3 -2.3
Equity Precious Metals
1.7 1.7 -27.0 -21.7 -6.0
Real Estate
-4.1 -4.1 7.5 9.5 5.5
Technology
-8.2 -8.2 12.2 8.1 6.7
Utilities
1.8 1.8 6.6 7.9 6.2
S&P 500
-5.0 -5.0 11.3 10.9 6.5
S&P MidCap 400
-5.7 -5.7 8.0 9.0 6.9
Russell 2000
-8.8 -8.8 6.1 7.3 4.9
Diversified Pacific/Asia
-5.9 -5.9 2.2 2.1 2.6
Diversified Emerging Mkts
-5.5 -5.5 -8.0 -5.0 1.5
Europe Stock
-6.0 -6.0 2.5 3.0 3.1
Foreign Large Blend
-5.8 -5.8 0.3 1.1 1.5
Foreign Large Growth
-6.0 -6.0 1.6 2.5 2.6
Foreign Large Value
-5.7 -5.7 -0.3 0.5 0.6
Foreign Small/Mid Growth
-6.3 -6.3 5.3 5.0 4.1
Foreign Small/Mid Value
-6.9 -6.9 2.5 1.9 2.6
World Stock
-5.4 -5.4 4.5 5.0 3.7
MSCI World
-6.0 -6.0 5.6 5.8 3.9
MSCI Emerging Markets
-6.5 -6.5 -9.2 -5.6 1.8
MSCI EAFE
-7.2 -7.2 0.7 1.6 1.7
MSCI Europe
-6.6 -6.6 0.2 1.7 2.0
MSCI Latin America
-4.6 -4.6 -21.6 -14.4 -0.9
MSCI Pacific
-8.4 -8.4 1.3 1.5 1.0
High Yield Bond
-1.6 -1.6 0.3 3.3 5.3
Inflation-Protected Bond
0.8 0.8 -2.4 1.7 3.1
Intermediate-Term Bond
0.8 0.8 1.5 3.3 4.3
Muni National Long
1.0 1.0 3.0 6.1 4.3
World Bond
0.1 0.1 -1.4 1.3 3.8
BarCap US Agg Bond TR USD 1.4 1.4 2.2 3.5 4.7
BofAML US HY Master II TR -1.6 -1.6 0.6 4.1 6.5
BarCap Municipal TR USD
1.2 1.2 3.4 5.8 4.8