Chart of the Week Archive

Industrials Forge Ahead

After a long decline last summer, industrial stocks have turned around and are now outpacing the broader market.

The Vanguard Industrials ETF (VIS) is up 13% since September 1, 2011.  That compares to an 8% rise for the broader equity market over the same time period.

Tough Quarter for Gold Investors

The final quarter of 2011 is one that Gold investors would like to forget.

SPDR Gold Shares (GLD) was down over 5% in the last three months of the year compared to a 15% gain for the SPDR S&P 500 (SPY) over the same time period.

However, from a longer term perspective, gold has consistently outperformed equities.

Can China Come Back?

China equities have continued to underperform the broader market throughout the second half of 2011.

The $6 billion iShares FTSE-Xinhua China 25 Index Fund (FXI) is down nearly 19% since the end of June compared to only a 2% decline for the S&P 500.

Thanksgiving Turkey to Santa Claus Rally

Equity investors continue to experience a roller coaster ride as a terrible run up to Thanksgiving was followed by a week significant gains in stock prices.

As the debt crisis and political uncertianty in Europe worsened, stocks began to turn down in the middle of November with the SPDR S&P 500 ETF (SPY) sliding over 8% by the end of Thanksgiving week.

Once the news from Europe turned positive, so did investors.

Risk On!

Stocks continued their run this week as investors once again embraced risk after the announcement of a preliminary European debt deal.

Since September 22, the SPDR S&P 500 ETF (SPY) is up 14% while the Barclays Capital 20+ Year Treasury Bond Fund (TLT) is down 10% over the same time period.

The Associated Press reported that after several delays and half-me

Are Stocks Back in Favor?

In a wild 4 week period, stocks and US Treasury bonds have experienced double digit swings that resulted in the two asset classes ending about where they began.

The Vanguard FTSE All-World ETF (VT) declined 9% before climbing 12% to finish the past 4 weeks up 3%.

Technology Tops Broad Market

Technology stocks have held up better than average in the highly volatile equity markets of the past few weeks.

In the three months ended October 7, the Dow Jones U.S. Technology Sector Index Fund (IYW) is down 8%.

Metals Melt Down

Uncertainty in Europe and China and a growing threat of a double-dip recession in the US has resulted in a rapid decline in the price of base metals.

The PowerShares DB Base Metals Fund (DBB) fell 24% in the past month compared to a 15% decline for the broader stock market over the same time period.

According to the Wall Street Journal, China manufacturing activity has contracted for three consecutive months.

Dollar Benefits from Flight to Safety

As investors abandon stocks and precious metals, the US dollar has rallied.

The PowerShares DB US Dollar Bullish Fund (UUP) is up over 3% in the past 3 months compared to a 11% decline in equities over the same time period.

According to the Wall Street Journal, investors pulled some $92 billion out of stock funds in the developed markets during the three months through August.

Bonds Hold Up Better than Stocks

Investors looking for an alternative to the volatile equity markets may want to consider corporate bonds.

The PIMCO Investment Grade Corporate Bond Index Fund (CORP) is up nearly 3% in the past 3 months while equities have declined nearly 4% over the same time period.

Corporate bond funds are another way to gain exposure to the economy while generating some income and avoiding much of the volatility of stocks.

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