How'd the markets fair in May? With all eyes on the Federal Reserve (or at least the media portraying it that way) I'd expect some volatility in the markets and that's exactly what happened - some stock categories were up and others were down.
If you recall international stocks have been the best performers year-to-date, well that trend has changed at least for this month. All US stock categories were up. Small cap value stocks were the best performer up just short of 2%. Large cap core and small cap value were close behind up just over 1% and large cap value turned in a respectable 0.47% for the month of May. Year-to-date the best US stock performance is small core which is up just about 5%. The worst...large value which is essentially flat at 0.02%.
International stocks have been on a tear lately so it's not surprising to see them pull back this month. Every international stock category was down with the one exception being intl. small core which returned 0.69%. Intl. small value was only down 0.13% and intl. large caps (core and value) were down over a percent. Emerging markets again was the most volatile giving up a lot of return from last month, down 4.16%.
Now, let's check in with Jim to see what kind of sage advice he has for us this month, "Everything I see on the news recently has been about the FED raising interest rates and how it's going to affect the financial markets. I've been in this business long enough to know that the free markets are smarter than any government entity. In our globalized world the FED's control is nothing more than an illusion and as such can be ignored by smart long-term investors."
Remarkable how one man can hold so much insight in his head. I'm gonna keep that in mind next time I turn on CNBC. (Better to just to leave it off).
Here's the monthly return numbers with stock charts:
May Returns By Asset Class
US Large Cap Core: 1.12%
US Large Cap Value: 0.47
US Small Cap Core: 1.93%
US Small Cap Value: 1.15%
International Large Core: (1.24%)
International Large Value: (1.83%)
International Small Core: 0.69%
International Small Value: (0.13%)
Emerging Markets: (4.16%)
Short Term Bonds: 0.00%