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March Month-End Summary
Bear With Me Now
he bears were on the prowl in March, as the worsening economy sent the equity markets into a tailspin that spilled over to even the most conservative sectors and stocks. Earnings misses, news of more layoffs, and a smaller than expected interest rate cut by the Federal Reserve Board all punished the markets this month. Investors found little reasoning to consider the continuing market decline as a buying opportunity. In fact, the persistently below-average trading volume on the major exchanges was one more reason for them to continue to stay on the sidelines. Predictably, occasional heavy-volume trading days were broad sell-offs.
The S&P 500 joined the NASDAQ in bear-market territory, while the Dow Jones Industrial Average flirted with, but then retreated from, a 20% drop from its high. Without a doubt, it was a chaotic end to a chaotic first quarter. The NASDAQ lost 14.4% in March and 25.5% in the first quarter, its worst first quarter ever and fourth worst overall. The technology-heavy index was more than 60% off its all-time high, which it reached on March 10, 2000. The DJIA was down 5.87% for the month and 8.4% for the quarter, its worst first quarter in 23 years. And the S&P 500 dropped 6.42% for the month and 12% for the quarter, more than it lost in all of 2000.
Fixed-Income Funds
Traditional bond funds eked out positive returns as the flight to diversification and safety picked up more steam. All categories of U.S. government bond funds and municipal bond funds were in the black in March, for the first quarter of 2001, and over the year ending March 31. The more aggressive fixed-income funds, however, followed in the footsteps of their equity cousins. Convertible bond funds lost 3.58% for the month, while high-yield bond funds were down 2.95%. These losses dragged down the average bond fund performance in March; as a whole, fixed-income funds lost 0.4 percent. All the mixed fund categories also suffered losses. As a group, they were down more than 4%.
International Funds
Foreign markets are not supposed to move in tandem with the U.S markets, but there was no relief for investors on this front in March. European markets were as turbulent as their U.S. counterparts; in Japan, the Nikkei Stock Average fell to levels not seen since the mid-1980s; and emerging markets bogged down in country-specific political scandals. Overall, international and non-U.S. equity funds lost 7.81% in March, while their fixed-income counterparts were down 1.64%. All equity categories were also in the red for the quarter and the 12-months ending March 31, but bond funds posted small gains over the last two time frames.
Fund Category Returns
|
Fund
Category
|
1
month
|
3
Month
|
Year
To Date
|
1 Year
|
3 Year
|
|
Aggressive Growth
|
-9.82
|
-20.25
|
-19.25
|
-34.23
|
8.04
|
|
Asset Allocation - Domestic
|
-3.81
|
-6.46
|
-6.46
|
-9.23
|
9.53
|
|
Asset Allocation - Global
|
-3.00
|
-4.53
|
-4.53
|
-6.76
|
3.54
|
|
Balanced - Domestic
|
-3.44
|
-5.45
|
-5.45
|
-5.73
|
10.97
|
|
Balanced - Global
|
-4.45
|
-7.04
|
-7.04
|
-9.55
|
10.05
|
|
Convertible
|
-3.58
|
-6.15
|
-6.15
|
-14.22
|
16.81
|
|
Corporate - High Yield
|
-2.95
|
3.52
|
3.52
|
-4.47
|
-5.97
|
|
Corporate - Investment Grade
|
0.30
|
2.89
|
2.89
|
10.14
|
16.44
|
|
Emerging Market Equity
|
-9.58
|
-6.88
|
-6.88
|
-37.61
|
-22.80
|
|
Emerging Market Income
|
-1.53
|
2.31
|
2.31
|
3.38
|
4.14
|
|
Equity Income
|
-3.57
|
-6.36
|
-6.36
|
-0.86
|
5.36
|
|
General Bd - Investment Grade
|
0.40
|
2.93
|
2.93
|
10.22
|
17.17
|
|
General Bd - Long
|
0.29
|
3.18
|
3.18
|
11.34
|
18.21
|
|
General Bd - Short & Interm
|
0.55
|
2.87
|
2.87
|
9.65
|
18.29
|
|
General Mortgage
|
0.60
|
2.39
|
2.39
|
9.78
|
18.16
|
|
Global Equity
|
-7.77
|
-13.94
|
-13.94
|
-25.47
|
6.02
|
|
Global Income
|
-1.20
|
0.49
|
0.49
|
3.04
|
5.66
|
|
Growth & Income
|
-4.97
|
-8.54
|
-8.54
|
-8.64
|
8.46
|
|
Growth - Domestic
|
-7.41
|
-14.07
|
-14.07
|
-22.70
|
10.33
|
|
Loan Participation
|
-0.16
|
0.12
|
0.12
|
2.33
|
15.10
|
|
Mid Cap
|
-8.78
|
-16.02
|
-16.02
|
-20.34
|
22.83
|
|
Multi-Sector Bond
|
-0.86
|
2.35
|
2.35
|
5.20
|
8.84
|
|
Municipal - High Yield
|
0.70
|
1.87
|
1.87
|
6.73
|
8.14
|
|
Municipal - Insured
|
0.76
|
1.69
|
1.69
|
10.21
|
14.13
|
|
Municipal - National
|
0.76
|
1.98
|
1.98
|
9.09
|
12.61
|
|
Municipal - Single State
|
0.70
|
1.76
|
1.76
|
9.56
|
12.65
|
|
Non-US Equity
|
-7.81
|
-12.64
|
-12.64
|
-30.49
|
1.81
|
|
S&P 500 Index
|
-6.42
|
-12.07
|
-12.07
|
-21.95
|
7.82
|
|
Sector - Energy/Natural Res
|
-2.06
|
-4.75
|
-4.75
|
14.67
|
15.44
|
|
Sector - Financial Services
|
-2.51
|
-6.86
|
-6.86
|
19.29
|
12.32
|
|
Sector - Health/Biotechnology
|
-11.74
|
-20.76
|
-20.76
|
4.16
|
43.58
|
|
Sector - Other
|
-4.48
|
-3.07
|
-3.07
|
0.09
|
8.92
|
|
Sector - Precious Metals
|
-9.08
|
-4.77
|
-4.77
|
-7.58
|
-31.85
|
|
Sector - Real Estate
|
-0.66
|
-1.65
|
-1.65
|
21.52
|
-0.74
|
|
Sector - Tech/Communications
|
-14.93
|
-29.67
|
-29.67
|
-57.77
|
36.77
|
|
Sector - Utilities
|
-2.57
|
-7.13
|
-7.13
|
-8.59
|
21.07
|
|
Small Cap
|
-6.77
|
-11.67
|
-11.67
|
-16.60
|
6.47
|
|
US Government - Long
|
0.16
|
2.47
|
2.47
|
12.10
|
19.62
|
|
US Government - Short & Interm
|
0.58
|
2.52
|
2.52
|
10.22
|
18.29
|
|
US Government/Agency
|
0.37
|
2.32
|
2.32
|
10.92
|
17.71
|
|
US Treasury
|
0.27
|
2.16
|
2.16
|
10.73
|
20.49
|
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Sponsored by James J. Eccleston. This Web site contains material of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice.
Always consult an attorney and/or investment adviser when building and protecting your wealth.
All content Copyright © 2010 Advocate Compliance Partners, Inc. except where noted. All rights reserved.
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Telephone 312-332-0000 | Fax 312-332-0003
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