In September the S&P500 climbed 2.58%, the Dow 2.74%, and the Nasdaq 3.42%.
Small cap stocks are now noticeably lagging these larger-cap-weighted indexes. The Russell 2000 index of smaller cap stocks gained just 0.83% in September, and is up just 0.44% over the last three months. Foreign stocks have been flat recently as well.
Bonds continued a remarkable comeback in September as interest rates fell along with fears of inflation and an overheated economy. The longer term bond index rose 1.65% for the month.
The old Dow record was finally broken (though not in September). Six years without a Dow record is the 4th longest such stretch in market history. Other major indexes like the S&P500 and NASDAQ remain below their all time high – the latter by about 50% - proof that if you pay enough of a premium for any investment it could take decades to see your original investment back, especially if you adjust for inflation. Those buying new condos in certain major metropolitan areas take note.
Still, many other stock indexes have been at record levels for some time – smaller cap oriented indexes and emerging markets in particular. Even these dead-in-the-water indexes and averages like the Dow, S&P500, and NASDAQ are all up around 68%, 76%, and 109% respectively from the lows of late 2002 - proof that buying after major multi-year weakness is a good idea.
The Conservative portfolio rose 1.05% in September on general strength in U.S. bonds and stocks.
The portfolio was led by a 4.53% return in the Vanguard Telecom ETF (VOX). This ETF is proving to be among the strongest performers this year (we added it to this portfolio at the end of February, but the fund is also one of our Hot Sheet picks for 2006). With a 25.55% year to date return through the end of September, Vanguard Telecom is the 4th best performer out of the over 300 ETFs in existence (beaten only by ETFs that invest in China, Spain, and REITs respectively). It has a good shot at being the top ranked ETF of the year. Considering how high risk and super concentrated many ETFs are, this fund's performance is quite remarkable.
International stocks are showing some weakness. SSgA International Growth (SINGX) was down 0.65% in September.
American Century International Bond (BEGBX) dropped .58% in September. Recently the U.S. dollar has strengthened, partly due to relatively high short term interest rates, partly to troubles with North Korea (investors tend to flock to the U.S. currency during turmoil) and partly because our economy is still stronger than many larger countries. With further weakness we in the U.S. dollar we will increase our allocation here.
In September the S&P500 climbed 2.58%, the Dow 2.74%, and the Nasdaq 3.42%.
Small cap stocks are now noticeably lagging these larger-cap-weighted indexes. The Russell 2000 index of smaller cap stocks gained just 0.83% in September, and is up just 0.44% over the last three months. Foreign stocks have been flat recently as well.
Bonds continued a remarkable comeback in September as interest rates fell along with fears of inflation and an overheated economy. The longer term bond index rose 1.65% for the month.
The old Dow record was finally broken (though not in September). Six years without a Dow record is the 4th longest such stretch in market history. Other major indexes like the S&P500 and NASDAQ remain below their all time high – the latter by about 50% - proof that if you pay enough of a premium for any investment it could take decades to see your original investment back, especially if you adjust for inflation. Those buying new condos in certain major metropolitan areas take note.
Still, many other stock indexes have been at record levels for some time – smaller cap oriented indexes and emerging markets in particular. Even these dead-in-the-water indexes and averages like the Dow, S&P500, and NASDAQ are all up around 68%, 76%, and 109% respectively from the lows of late 2002 - proof that buying after major multi-year weakness is a good idea.
The Aggressive Growth portfolio rose 2.16% in September on general strength in U.S. bonds and stocks.
The portfolio was led by a 4.53% return in the Vanguard Telecom ETF (VOX). This ETF is proving to be among the strongest performers this year (we added it to this portfolio at the end of February, but the fund is also one of our Hot Sheet picks for 2006). With a 25.55% year to date return through the end of September, Vanguard Telecom is the 4th best performer out of the over 300 ETFs in existence (beaten only by ETFs that invest in China, Spain, and REITs respectively). It has a good shot at being the top ranked ETF of the year. Considering how high risk and super concentrated many ETFs are, this fund's performance is quite remarkable.
Tech was strong, with our Technology SPDR ETF posting a solid 4% gain.
Mega cap stocks led the charge in September, and our ultra low fee (less than Vanguard 500 index!) Bridgeway Blue Chip 35 Index (BRLIX) was up 3.21% for the month (and up 7.07% over the last three months). Compare this to a near flat return in smaller cap stocks.
International stocks are now lagging, though Japan has done worse than other countries since peaking earlier in 2006. T. Rowe Price Japan was down 1.08% in September.
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In September the S&P500 climbed 2.58%, the Dow 2.74%, and the Nasdaq 3.42%.
Small cap stocks are now noticeably lagging these larger-cap-weighted indexes. The Russell 2000 index of smaller cap stocks gained just 0.83% in September, and is up just 0.44% over the last three months. Foreign stocks have been flat recently as well.
Bonds continued a remarkable comeback in September as interest rates fell along with fears of inflation and an overheated economy. The longer term bond index rose 1.65% for the month.
The old Dow record was finally broken (though not in September). Six years without a Dow record is the 4th longest such stretch in market history. Other major indexes like the S&P500 and NASDAQ remain below their all time high – the latter by about 50% - proof that if you pay enough of a premium for any investment it could take decades to see your original investment back, especially if you adjust for inflation. Those buying new condos in certain major metropolitan areas take note.
Still, many other stock indexes have been at record levels for some time – smaller cap oriented indexes and emerging markets in particular. Even these dead-in-the-water indexes and averages like the Dow, S&P500, and NASDAQ are all up around 68%, 76%, and 109% respectively from the lows of late 2002 - proof that buying after major multi-year weakness is a good idea.
The Conservative portfolio rose 1.05% in September on general strength in U.S. bonds and stocks.
The portfolio was led by a 4.53% return in the Vanguard Telecom ETF (VOX). This ETF is proving to be among the strongest performers this year (we added it to this portfolio at the end of February, but the fund is also one of our Hot Sheet picks for 2006). With a 25.55% year to date return through the end of September, Vanguard Telecom is the 4th best performer out of the over 300 ETFs in existence (beaten only by ETFs that invest in China, Spain, and REITs respectively). It has a good shot at being the top ranked ETF of the year. Considering how high risk and super concentrated many ETFs are, this fund's performance is quite remarkable.
International stocks are showing some weakness. SSgA International Growth (SINGX) was down 0.65% in September.
American Century International Bond (BEGBX) dropped .58% in September. Recently the U.S. dollar has strengthened, partly due to relatively high short term interest rates, partly to troubles with North Korea (investors tend to flock to the U.S. currency during turmoil) and partly because our economy is still stronger than many larger countries. With further weakness we in the U.S. dollar we will increase our allocation here.
In September the S&P500 climbed 2.58%, the Dow 2.74%, and the Nasdaq 3.42%.
Small cap stocks are now noticeably lagging these larger-cap-weighted indexes. The Russell 2000 index of smaller cap stocks gained just 0.83% in September, and is up just 0.44% over the last three months. Foreign stocks have been flat recently as well.
Bonds continued a remarkable comeback in September as interest rates fell along with fears of inflation and an overheated economy. The longer term bond index rose 1.65% for the month.
The old Dow record was finally broken (though not in September). Six years without a Dow record is the 4th longest such stretch in market history. Other major indexes like the S&P500 and NASDAQ remain below their all time high – the latter by about 50% - proof that if you pay enough of a premium for any investment it could take decades to see your original investment back, especially if you adjust for inflation. Those buying new condos in certain major metropolitan areas take note.
Still, many other stock indexes have been at record levels for some time – smaller cap oriented indexes and emerging markets in particular. Even these dead-in-the-water indexes and averages like the Dow, S&P500, and NASDAQ are all up around 68%, 76%, and 109% respectively from the lows of late 2002 - proof that buying after major multi-year weakness is a good idea.
The Aggressive Growth portfolio rose 2.16% in September on general strength in U.S. bonds and stocks.
The portfolio was led by a 4.53% return in the Vanguard Telecom ETF (VOX). This ETF is proving to be among the strongest performers this year (we added it to this portfolio at the end of February, but the fund is also one of our Hot Sheet picks for 2006). With a 25.55% year to date return through the end of September, Vanguard Telecom is the 4th best performer out of the over 300 ETFs in existence (beaten only by ETFs that invest in China, Spain, and REITs respectively). It has a good shot at being the top ranked ETF of the year. Considering how high risk and super concentrated many ETFs are, this fund's performance is quite remarkable.
Tech was strong, with our Technology SPDR ETF posting a solid 4% gain.
Mega cap stocks led the charge in September, and our ultra low fee (less than Vanguard 500 index!) Bridgeway Blue Chip 35 Index (BRLIX) was up 3.21% for the month (and up 7.07% over the last three months). Compare this to a near flat return in smaller cap stocks.
International stocks are now lagging, though Japan has done worse than other countries since peaking earlier in 2006. T. Rowe Price Japan was down 1.08% in September.