Friday, April 3, 2009

The Good, the Bad and the Interesting - Part III

Here it is!  The table below shows returns for some of the mutual funds owned by some of our clients, arranged by asset class, from November 20 of last year through the end of last month.  

The interesting part is just how strong returns were during this four month period, when there was virtually no good news reported anywhere about anything.  Both high yield bonds and US large growth stocks had returns in excess of 13%, a good four month stretch in any market environment. Emerging market stocks were up over 26%, partying like it was 1999.  (a 26% return over four months results in an annualized return of 100%)

If we were to dig deeper into these returns we would see that most of the positive returns were during the last week of November and the final two weeks of March.  If we could have timed these two bursts of return, we would have made back all of the losses from last October.  Oh if it were only that easy....