Common Cents

by | Feb 10, 2022 | WWC WorthWhile Reading

 

Last week…the volatility continued but, this time it was to the upside!

 

 

 

We know, that’s not how you think of volatility but it is half the equation! And, it was a decent upturn across the board with the exception of US Equity REITS.

 

As the chart shows, both US Large Growth stocks and Technology sector stocks have bumped up against a technical correction (-10.0% or more) year to date. All US Value stocks, on the other hand have held on to most of their gains from last year with Small Value down less than half Small Growth and Mid Value down less than a third of Mid Growth’s YTD slide.

 

For more useful perspective we’ve included a column showing the one-year total return which certainly helps absorb that sinking feeling from the January dive in stock prices.

 

US Large Growth for the trailing 12 months remains at a healthy 10.5%, Tech sector a robust 16.53% and US Large Value an even more robust 19.0%. US Mid Growth, which finished last year up only 10.4% experienced a correction at (-11.4%). US Small Growth is further swallowing a – 16.0% while US Small Value remains up 12.07% for the one-year trailing period.

 

US Equity REITS’ one year return is remains a lofty 24.7%. Foreign Growth has dipped into the red while Foreign Value remains up 12.6% and Foreign Small Co’s up 1.2%. Let’s hope Emerging Markets have found their bottom with nearly 2.5% surge last week.

 

We think there’s still some volatility ahead but there’s reason to believe we may be bouncing near if not at the bottom with more bull market in the forecast this year.

 

 

 

All performance reported in the graph and performance references are from the following index list: DJ Industrial Average TR USD, S&P 500 TR, DJ US TSM Large Cap Growth TR USD, NASDAQ 100, Technology NTTR TR USD, DJ US Health Care TR USD, DJ US TSM Large Cap Value TR USD, DJ US TSM Mid Cap Growth TR USD, DJ US TSM Mid Cap Value TR USD, DJ US TSM Small Cap Growth TR USD, DJ US TSM Small Cap Value TR USD, FTSE NAREIT All Equity REITs TR, DJ Gbl Ex US Select REIT TR USD, Bloomberg Commodity TR USD, MSCI EAFE NR USD, MSCI EAFE Growth NR USD, MSCI EAFE Value NR USD, MSCI EAFE Small Cap NR USD, MSCI EM NR USD, BBgBarc US Corporate High Yield TR USD, FTSE WGBI NonUSD USD, JPM EMBI Plus TR USD, BBgBarc US Govt 1-3 Yr TR USD, ICE BoafAML 1-3Y US Corp TR USD, BBgBarc Intermediate Treasury TR USD, BBgBarc Interm Corp TR, BBgBarc US Treasury US TIPS TR USD. This material has been prepared solely for informational purposes based upon data generally available to the public from sources believed to be reliable. All performance reporting is for indexes, not specific securities. Performance of specific securities will vary from indexes. Past performance is not an assurance of future results. Indexes cited are provided to illustrate market trends for certain asset classes. It is not possible to invest directly in an index. Indexes do not reflect individual investor costs of trading, expense ratios & advisory or other fees