It's been a rocky year for the stock market and this month is no exception. Once again we have seen mixed results with a general flight to safety away from small cap stocks to large cap stocks. Maybe you have heard or maybe not but the Chinese stock market is going through a bit of a crash (down 30% in only three weeks). It came too far too fast this year and well, when that happens it's time for a correction. This can be felt in the emerging markets stock category which took a big hit this month and is now down for the year. But despite the pullback in emerging markets the rest of the international markets were, surprisingly, up. (Diversification in action!)
Let's take a look at the numbers. US large cap core stocks were up just over 2% while US large cap value stocks were up just under 1%. US small cap stocks were both down; US small core (0.69%) and US small value (1.30%).
International performed a little better with large core up 2.05% and large value up 1.65%. International small core was up 0.76% and International small value was down slightly at (0.14%). Emerging markets, dragged down by China, was off (7.26%). If this continues we could see some great value here!
Now, let's check in with Jim to see what's going on in his brilliant financial mind...
"First it was Greece now it's China, we are lucky to see theses two "Crises" so close together because it drives home the point how irrelevant they actually are to a long term financial plan. I thought the world already ended after the Greece crisis...Is it ending all over again?"
That really puts it all into perspective. Thank you Jim.
Here's the monthly return numbers with stock charts:
July Returns By Asset Class
US Large Cap Core: 2.10%
US Large Cap Value: 0.71%
US Small Cap Core: (0.69%)
US Small Cap Value: (1.30%)
International Large Core: 2.05%
International Large Value: 1.65%
International Small Core: 0.76%
International Small Value: (0.14%)
Emerging Markets: (7.26%)
Short Term Bonds: 0.03%