July 2014 Market Summary
Well at least the weather is nice.
You may have already realized this but it was a terrible month for stocks. The Bull Market that we have been experiencing has stalled as all of the major stock categories were down except for one, emerging markets. The worst performers were by far US Small Cap Stocks (both core and value down 5.1% and 4.5%, respectively). If you recall, these two categories were the best performers last month and small value was the best performer year-to-date until July. Both US and International Large Cap stocks were down but none were down more then 2%. Emerging Markets was the one bright spot up 1.4% making it the best performer of the year, up 6.3%. Keep in mind Emerging Markets was one of the worst performers all last year.
Short-term bonds were essentially flat at (0.14%) and have returned 1% year-to-date.
So, is this the beginning of a new bear market? It could be, but it could just be a short pull-back on the way up to new highs. Either way you should not consider selling out of anything and instead hold the course or better yet invest more. Jim says, "Be prudent and don't do it all at once."
One Month Returns By Asset Class
US Large Cap Core: (1.28%)
US Large Cap Value: (1.67%)
US Small Cap Core: (5.10%)
US Small Cap Value: (4.50%)
International Large Core: (1.92%)
International Large Value: (1.65%)
International Small Core: (2.44%)
International Small Value: (2.51%)
Emerging Markets: 1.43%
Short Term Bonds: (0.14%)