Innovest's May 2009 Market Commentary

Please click here to read the May 2009 Market Commentary.

Market Recap

May was an exceptional month for just about every asset class. Domestic stocks had another strong month, and the overall market is now in the black for the year. The S&P 500 Index gained 5.6% and was up 3% for the first five months of the year. Smaller-caps generally lagged larger-caps in May but still posted a gain of 1.6% -- solid, if not spectacular. Year-to-date, there has been a big disparity between growth and value, with the former outperforming the latter by a wide margin across all market capitalizations. Developed international equities had a very strong month, with the MSCI EAFE Index gaining 11.8%, bringing its year-to-date return to +8.6%. The strong showing for foreign stocks was even greater for emerging-markets equities, which gained 17.1% in May to bring its 2009 return to more than +37.9%.

Fixed Income
Investment-grade bonds, as measured by the Barclay’s Aggregate Index, gained almost 0.7% in May, while high-yield bonds, as measured by the Barclay’s High Yield index, continued their strong run with a 6.7% gain. High-yield is now up 23.5% in 2009. Bank loans, as measured by the CSFB Bank Loan Index, also continued their strong rebound with a gain of 5.7% and are now up 22.4% year-to-date. Municipal bonds eked out a gain of 0.22% and have returned +3.7% this year...

Please click here to continuing read the May 2009 Market Commentary.