SECURITIES MARKET RETURNS UPDATE
Through October of 2004

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Market Comment:

October was a somewhat volatile month, with the S&P 500 climbing in the first few days before losing several percentage points, and finally finishing the month up 1.5%. Small-cap stocks were also volatile but fared somewhat better, gaining 2%. Large company growth and value stocks performed more or less in line with one another. Domestic investment-grade bonds had a small gain but foreign bonds did even better, gaining 3%. Natural resource and energy stocks rose 0.5%. Utility stocks gained 4 % during October.

 Current Asset Class Observations:

  • US Equities - Large growth stocks gained 1.5%. Value stocks gained 1.5%. Small cap and mid cap stocks gained almost 2% each. Stocks of publicly traded real estate companies (REITs) gained 5%. Financial stocks gained 1.4% while health care stocks lost 2%. Technology shares gained 4%. Commodities rose in value about 3%.

  • Foreign Equities - European stocks gained 3%. Pacific Rim stocks gained 1% and Japanese stocks gained 1.5%. Latin American stocks gained 3% and emerging market stocks gained 2%.
  • Bonds - US bonds rose slightly but global bonds rose 3% as the dollar lost significant value versus the euro. High yield bonds gained 2%. Inflation indexed bonds gained 1%.

 

 

Best Worst
October 2004
One
Month
Three
Months
Twelve
Months
REIT
Funds
4.98%
REIT
Funds
12.52%
Natural
Resources
38.57%
NASDAQ
Composite
4.12%
Emerging
Markets
12.08%
REIT
Funds
28.96%
Foreign
Stocks
3.41%
Natural
Resources
8.70%
Foreign
Stocks
18.84%
Emerging
Markets
2.18%
Foreign
Stocks
6.58%
Emerging
Markets
15.93%
Small
Stocks
1.97%
Small
Stocks
6.21%
Large
Value Stocks
14.46%
Large
Growth Stocks
1.55%
NASDAQ
Composite
4.64%
Small
Stocks
11.73%
S&P
500
1.53%
Large
Value Stocks
4.56%
S&P
500
9.41%
Large
Value Stocks
1.51%
S&P
500
3.04%
Large
Growth Stocks
4.49%
Bonds

0.67%
Bonds

2.53%
Bonds

4.33%
Natural
Resources
0.47%
Large
Growth Stocks
1.50%
NASDAQ
Composite
2.21%
 
Consumer
Price Index
+0.60%
Consumer
Price Index
+0.90%
Consumer
Price Index
+3.00%
Key
Bonds - represented by Lehman Brothers Intermediate Index
S&P 500 - top 500 US stocks by market capitalization
NASDAQ Composite - all stocks traded on the NASDAQ Exchange
Large growth stocks - represented by the Barra Growth Stock Index
Large value stocks - represented by the Barra Value Stock Index
Small stocks - represented by the Russell 2000 Small Cap Index
Foreign stocks - represented by the MSCI International Stock Index
Emerging Markets - represented by the MSCI Emerging Markets Index
REIT Funds - composite of all Real Estate mutual funds
Natural Resources Funds - composite of all mutual funds
The opinions expressed in this commentary are those of Pinnacle Financial Advisors, LLC. These views are subject to change at any time based on market and other conditions, and no forecast is guaranteed. This material is derived from sources believed to be reliable, but its accuracy and the opinions based theron are not guaranteed. The opinions are for general information only and are not intended to serve as specific financial, legal, investment or tax advice.

Pinnacle Financial Advisors, L.L.C.
11000 Lincoln Drive West, Suite 8
Marlton, NJ 08053
856-797-8082

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UPDATED 12/20/2004
Copyright 2004, 2005
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