Viewing entries tagged quarterly investment review
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Brent Everett
Brent Everett
Brent Everett founded Profisys, LLC, a fee-only Registered Investment Advisor, in 1998. While acting as Manag...
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Friday, January 06, 2012
in Unconventional Wisdom
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Led by the excellent performance of US stocks, global equity markets posted strong returns in the quarter. Those returns, however, were not sufficient to overcome a dismal third quarter and most markets had negative returns for the year.
- Quarterly returns for the broad US market, as measured by the Russell 3000 Index, were 12.12%. Asset class returns ranged from 15.97% for small cap value stocks to 10.61% for large cap growth stocks. The strongest sectors in the quarter were energy and industrials, while the weakest one was telecommunication services. For 2011, the strongest sectors were utilities and consumer staples, while the weakest ones were financials and materials. Value outperformed growth in the quarter, but not in 2011.
- In US dollar terms, the quarterly returns for developed non-US markets were over 3%, above the historical average but far behind the US. For 2011, however, developed international markets as a whole lost over 12%. As in most of the past few quarters, there was much dispersion in performance at the individual country level. Greece, which remains at the center of Europe’s sovereign-debt woes, was by far the worst performer in the quarter and the year. At the other end of the spectrum, Ireland, the Scandinavian countries, and Australia were the top performers for the quarter.
- In US dollar terms, emerging markets gained about 4% in the quarter, in line with the historical average, but not enough to overcome their very poor performance of the third quarter. As a result, emerging markets lost almost 20% in 2011. Malaysia and other smaller emerging markets in Asia and Latin America such as Thailand and Peru posted double-digit returns in the quarter. At the other end of the spectrum, India, Turkey, and Egypt had double-digit negative returns in the quarter.
Posted by
Brent Everett
Brent Everett
Brent Everett founded Profisys, LLC, a fee-only Registered Investment Advisor, in 1998. While acting as Manag...
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Wednesday, October 12, 2011
in Unconventional Wisdom
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Equity markets around the world had their worst quarter since the end of 2008, as investors reacted negatively to the sovereign debt problems in Europe, the budget stalemate in the US, and poor economic data in most developed countries and in some large emerging countries such as China. The broad US market lost over 15%.
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In US dollar terms, the overall performance in other developed markets was even worse, but that performance differential with the US was entirely due to currency fluctuations. In local currency, developed markets as a whole performed on par with the US. As in most of the past few quarters, there was much dispersion in performance at the individual country level. Greece, which remains at the center of Europe’s sovereign-debt woes, was by far the worst performer. At the other end of the spectrum, Japan, whose dollar-denominated returns greatly benefited from the strength of the yen, and New Zealand were the top performers. The US dollar gained ground against most major currencies except the yen, which hurt the dollar-denominated returns of developed market equities.
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In US dollar terms, emerging markets had sharply negative returns and trailed developed markets. In local currency, however, emerging markets as a whole had similar performance to developed markets. As in developed markets, there was much dispersion in the performance of different emerging markets. Peru and some of the smaller emerging markets in Asia did relatively well. On the other hand, Russia and other European markets were among the worst performers. The US dollar also gained ground against the main emerging market currencies, which contributed negatively to the dollar-denominated returns of emerging market equities.
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Value stocks had mixed performance relative to growth stocks. In the US, small value outperformed small growth, but large value greatly underperformed large growth. In other developed markets, value stocks trailed growth stocks across all market capitalization segments. In emerging markets, value outperformed growth across all market capitalization segments. Along the market capitalization dimension, small caps greatly underperformed large caps in the US and in emerging markets, but not in developed markets outside the US.
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Most fixed income securities had excellent returns, especially short-term US government securities, which greatly benefited from the flight to quality, and inflation-protected securities.
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Posted by
Brent Everett
Brent Everett
Brent Everett founded Profisys, LLC, a fee-only Registered Investment Advisor, in 1998. While acting as Manag...
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Friday, July 15, 2011
in Unconventional Wisdom
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•Despite weaker-than-expected economic data in the US and Europe’s sovereign-debt crisis, equity markets around the world were little changed in the second quarter. The broad US market was flat for the quarter.
•In US dollar terms, the overall performance in other developed markets was slightly positive, but that positive performance was entirely due to currency fluctuations. As in most of the past few quarters, there was much dispersion in performance at the individual country level. Greece, which once again had to be bailed out by the European Union and the International Monetary Fund to avoid defaulting on its sovereign debt, had sharply negative returns for the quarter. At the other end of the spectrum, New Zealand and core European countries such as Germany and France had strong positive returns. The US dollar lost ground against all major currencies, which helped the dollar-denominated returns of developed market equities.
•Emerging markets had negative returns and trailed developed markets in the quarter. As in developed markets, there was much dispersion in the performance of different emerging markets. Indonesia and other small emerging markets in Asia did well. On the other hand, some of the largest emerging countries such as China, Brazil, India, and Russia had sharply negative returns and were among the worst performers. The US dollar also lost ground against the main emerging market currencies, which contributed positively to the dollar-denominated returns of emerging market equities.
•Value stocks underperformed growth stocks across all market capitalization segments in the US and in other developed markets. In emerging markets, however, value stocks had mixed performance relative to growth stocks: small cap value outperformed small cap growth, while large cap value underperformed large cap growth. Along the market capitalization dimension, small caps underperformed large caps in the US and in other developed markets, but not in emerging markets.
•Most fixed income securities had excellent returns, especially inflation-protected securities.
•Real estate securities had strong returns and excellent performance relative to other asset classes.
Posted by
Brent Everett
Brent Everett
Brent Everett founded Profisys, LLC, a fee-only Registered Investment Advisor, in 1998. While acting as Manag...
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Saturday, April 16, 2011
in Unconventional Wisdom
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The Q1 2011 Quarterly Investment Review has been posted to our website. This presentation discusses asset class performance, events that had an impact on capital markets, long-term performance of various global markets, and relative values of stock markets around the world. These results are compared to the performance of balanced portfolios.
The QIR also includes a discussion a comparison to the market recoveries following 1932 and 1974. Investors were slow to regain confidence after these downturns, illustrating that the concept of a "new normal" is anything but new.
Posted by
Brent Everett
Brent Everett
Brent Everett founded Profisys, LLC, a fee-only Registered Investment Advisor, in 1998. While acting as Manag...
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Wednesday, January 12, 2011
in Unconventional Wisdom
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The Quarterly Investment Review for fourth quarter 2010 is now available. This update contains:
- Discussion of quarterly capital market behavior
- Review of significant events that occurred during the quarter
- Survey of long-term asset class performance
- Analysis of world market capitalization
- Returns of globally diversified portfolios
- Achieving market returns in 2010
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Led by the excellent performance of US stocks, global equity markets posted strong returns in the quarter. Those returns, however, were not sufficient to overcome a dismal third quarter and most markets had negative returns for the year.
