Hello, I do this monthly report on the discuss forums on M*.com and thought it would be useful to some here who use allocation funds.
Market Recap
- Interest rates jumped after the fed announced the possibility of reducing their bond purchasing program (QE3) if the economy continues to improve. Most securities sensitive to interest rates (Bonds, Preferreds, Mortgage REITS, Utilities) took a decent size haircut.
- SHIBOR? China experienced a liquidity crunch and their central bank drained reserves from the system. The b word (bubble) is getting thrown around a lot. China (FXI) was down -11% in June.
- The S&P 500 (SPY) was down -2.38% in June and was positive for the quarter, up 2.80%. The Russell 2000 (IWM) was down -1.75% in June and was up 4.12% for the quarter. The S&P 600 (SLY) was down -1.07% for June and up 4.86% for the quarter.
- The 20 year treasury (TLT) fell -3.78% in June and -6.72% in the second quarter.
- Despite a major retracement in the Nikkei, Japanese equities (EWJ) were still able to manage a gain, up 4.78% in June and up 8.09% for the quarter.
- Emerging market equities/bonds continued to sell off in June and for the quarter and there were some pretty severe moves. Brazil (EWZ) was down -18.73% for the quarter. Turkey (TUR) was down -17% for the quarter.
- Gold (IAU) was down -12.55% in June and -22.89% for the quarter. Silver (SLV) was down -13.69% for June and -29.97% for the quarter. The worst quarter for gold in 45 years!
- The dollar (UUP) strengthened and was up 0.49% in June and 0.18% for the quarter.
Monthly Leaders: PVSYX, VILLX, PRWCX, GRSPX, FPACX, DODBX, LKBAX
Monthly Laggards: ABRYX, PAUIX, PRPFX, TIBIX, IVAEX, LSWWX, PQIIX, JNBSX
Quarterly Leaders: PVSYX, VILLX, DODBX, FPACX, PRWCX, BERIX, LKBAX, VWELX
Quarterly Laggards: PRPFX, PAUIX, ABRYX, PGBAX, BRUFX, IVAEX, JNBSX, GLRIX
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** The data is as of 6/28/13 and the one month performance goes back to 5/28/13.Comments:Allocation funds that were light on bonds and international stock/bonds navigated through this recent sell off fairly well. Do any of you think it will be a continued trend? Or do you think it’s just a short term event from a knee jerk reaction to a rise in interest rates?
Is anybody adding to emerging markets/world allocation funds after the recent selloff?
I got some cash to work in June. Purchased SFGIX towards the end of the month and started a tiny position in GDXJ on the 26th. Both are a small part of my overall asset allocation.
Report Your BUYS, SELLS & WHY-- JUNE '13Some Good Reads:“We are not tightening”, says a tightening Fed – economist.com
China’s economy is freezing up. How freaked out should we be? – washingtonpost.com
Record $13B ETF Outflows In June 2013 - indexuniverse.com
Missed the big market rally? Here’s what to do now. – ritholtz.com
GMO’s Montier on Why to Hold Cash – advisorperspectives.com
Steve Romick: Trade Into The Gold You Can Eat, Farmland - Forbes.com
The Outlook for Equities - oaktreecapital.com
Why the Markets’ Latest Stumbles Are Good News – wsj.com
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