posted on June 13, 2014 15:27
Investors who listened to the “sell in May and go away” advice missed out! Global markets provided substantial returns, even as investors digested mixed corporate earnings and a decline in first quarter U.S. real GDP. The S&P 500 reached new all-time highs, rallying 2.3% for the month. U.S. small stocks, up 0.8%, continued to lag U.S. large cap stocks. International developed stocks did well (up 1.6%), while a rebound in China contributed to a considerable 3.5% gain in emerging markets, advancing the index into positive territory for the year. Even fixed income securities posted above-average returns. Inflation-protected bonds (TIPS) led the way, gaining 2.1%, and international bonds climbed 0.7%. On the alternatives side, commodities disappointed investors with a 2.9% decline, but lower interest rates helped fuel a 2.7% gain in Global REITs. Overall, despite less than ideal economic data, market optimism remains high.
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