Innovest's December 2009 Market Commentary

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Markets

As investors’ tolerance for risk continued to grow, stocks remained strong in December.  Rebounding from severe losses in 2008, U.S. stocks in 2009 had their best year since 2003.  Large-cap stocks eked out a small gain in December with the S&P 500 up 1.93%.  For calendar year 2009, the S&P 500 gained 26.5%, the 11th best result in the last 50 years for the index.

Mid-cap stocks outperformed large-cap stocks and slightly underperformed small-cap stocks as the S&P 400 finished December up 6.28%.  Many formerly large-cap companies moved into mid-cap territory during the 2008 bear market and rose in 2009 on investors’ expectation of a strengthening economy and rising profit growth.

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