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by Karl C. Mergenthaler, CFA and William Pometto
J.P. Morgan Investment Analytics & Consulting
karl.c.mergenthaler@jpmorgan.com, william.x.pometto@jpmorgan.com,
AS OF JANUARY 2010
| Index |
Monthly Return |
Trailing 3 Months |
Year to Date |
Fiscal YTD |
1 Year |
2 Year |
3 Year |
5 Year |
10 Year |
BARCLAYS CAPITAL US AGGREGATE BOND INDEX
|
1.53 |
1.23 |
1.53 |
1.53 |
8.51 |
5.51 |
6.59 |
5.15 |
6.53 |
M.L. HIGH YIELD INDEX
|
1.52 |
5.61 |
1.52 |
1.52 |
51.28 |
8.79 |
5.79 |
6.57 |
6.96 |
MSCI EMERGING MARKETS FREE GROSS
|
(5.56) |
2.40 |
(5.56) |
(5.56) |
80.66 |
(4.92) |
3.79 |
14.49 |
9.42 |
MSCI-Eafe (Net)
|
(4.41) |
(1.09) |
(4.41) |
(4.41) |
39.68 |
(11.35) |
(7.65) |
2.99 |
1.38 |
RUSS-Russell 1000 Growth (Gross)
|
(4.36) |
4.65 |
(4.36) |
(4.36) |
37.85 |
(6.40) |
(4.15) |
1.42 |
(3.95) |
RUSS-Russell 2000 Value (Gross)
|
(2.93) |
7.74 |
(2.93) |
(2.93) |
36.55 |
(6.86) |
(9.57) |
0.19 |
8.24 |
RUSS-Russell 3000 (Gross)
|
(3.60) |
4.78 |
(3.60) |
(3.60) |
35.05 |
(9.14) |
(7.16) |
0.57 |
(0.17) |
S&P 500 - CAP. WEIGHTED
|
(3.60) |
4.16 |
(3.60) |
(3.60) |
33.14 |
(9.61) |
(7.24) |
0.18 |
(2.29) |
U.S. EQUITY
- U.S. equities corrected moderately in January due to concerns over the economic growth outlook amidst stubbornly high unemployment.
- Small Cap Growth Stocks were hit hardest as the Russell 1000 Growth Index lost 4.36% in January after leading U.S. equity returns in 2009.
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FIXED INCOME
- The Barclays Aggregate Index posted a monthly return of 1.53% in January in line with its steady performance over the past decade.
- High Yield was up only 1.52% in January after gaining 51.28% in the trailing year as spreads normalize.
- TIPS continue to be an attractive asset class for institutional investors looking to hedge against inflation concerns, though inflation appears to be in check according to economic indicators.
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INTERNATIONAL EQUITY
- International equities were down for the month on news of debt woes in Greece and uncertainty over the possibility of a unified Eurozone response. The MSCI EAFE was down 4.41% in January.
- Emerging markets lost ground as China implemented new restraints in its fiscal policy after extraordinary GDP growth in 2009. The MSCI Emerging Market Free Gross Index was down 5.56% in January.
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REAL ESTATE AND OTHER
- After recovering some losses in 2009, the MSCI U.S. REIT Index was down 5.54% in January.
- The S&P GSCI slipped 7.9% in January after a strong price recovery in 2009. Copper prices dropped for the first time since December 2008, losing 8.73% in January 2010 over uncertain demand from emerging markets.
- Gold prices have lost ground since peaking at record highs in November. Prices slipped 1.47% in January mainly on expectations of strength in the USD and less concern about near term inflation.
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