Insightful Investing Update November 2009
After six months of heading almost straight up, the stock market finally took a breather in October. Small cap stocks took the worst of it, dropping -7%, while large caps fell only -2%. In spite of the break in the action, this continues to be an excellent year for stocks, led by emerging market equities which have picked up 65% so far this year. Domestically, growth stocks have led value stocks by a considerable margin, with mid cap growth stocks leading the way for equities gaining close to 30% in 2009.
Bonds had a good month, led by this year’s leading high yield subcategory which picked up another couple of points in October to bring this year’s bounce over the 50% marker.
October winners included 2% gains by Wasatch-1st Source Long/Short (FMLSX) and TCW Total Return Bond (TGLMX) while the iShares MSCI Emerging Markets Index (EEM) ETF added more than 5% for the month.
With stocks experiencing a slowdown in momentum it is time to rebalance your portfolio. Check your asset allocation now in order to rebalance those investments that may have become too large a part of your portfolio. If you have been holding back on becoming fully invested, take advantage of any pullback in the market to continue to move towards the target asset allocation that is appropriate for you and your financial situation.
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