John Gorlow
| Jun 07, 2014
May Review
Following a mid-month slump, the S&P 500 finished May with a 2.35% return. Across the Atlantic, the MSCI European Equity Index returned 0.89%. As far as the MSCI Pacific Rim Index, it returned 3.22%. Momentum returned to the developing markets with the MSCI Emerging Market Equity Index jumping a healthy 3.49%. This was a good month for global equity investors.
Turning to the bond market, Barclay's U.S. Aggregate Bond Index finished the month returning 1.14%. The S&P National AMT Free Municipal Bond Index advanced 1.20%. High-Grade US bonds out-performed lower-quality high-yielding credits. Specifically, Barclay's U.S. Investment Grade Index returned 1.41% versus 0.92% for the High-Yield Index. Looking at the Treasury market, inflation protected securities spiked a decent 2.12%. The ten-year note finished lower at 2.47%. And the long-dated, thirty-year bond closed at 3.33%.
Finally, the Dow-Jones US REIT Index returned 2.46%. The S&P Developed ex US REIT Index returned 3.39%. On the other hand, the Dow Jones AIG Commodity Index finished April with a negative 2.87% return.
Overall a great month!
In the Media:
Dimensional Implements Profitability Factor in Equity Strategies
Pension & Investments
By Barry B. Burr | April 14, 2014
Jed Fogdall, co-head of Portfolio Management, and Savina Rizova, a vice president in Research, explain how academic work on profitability has been incorporated into our equity strategies.
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The 'Recency Effect' Can Trip Up Investors
Wall Street Journal
By Simon Constable | April 6, 2014
Recency bias helps fuel trends by telling people to pile into holdings that are doing well and cash out of investments that are doing poorly. The problem is, sooner or later trends reverse.
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Lawrence Summers on “House of Debt”
Financial Times
By Lawrence Summers | June 7, 2014
Did the response to the financial crisis focus too much on banks while neglecting over-indebted homeowners?
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The Deal’s Done. But Not the Fees.
New York Times
By Gretchen Morgenson | May 24, 2014
The S.E.C. is taking a closer look at what private equity investors charge their investors
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Rules of the Road: Watch the Fees, and Don’t Look Back
New York Times
By Jeff Sommer | June 1, 2014
The expenses of a mutual fund often tell you something that its past performance cant
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