SECURITIES MARKET RETURNS UPDATE
Through September of 2004

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Market Comment:

September was a solid month for equity markets. Small-cap stocks, foreign stocks, and growth stocks were particularly strong. Large cap growth stocks underperformed smaller cap growth stocks because pharmaceuticals lost market value with problems at Merck and Pfizer. Bonds had little gain. Natural resource and energy stocks soared with rising oil prices and reports of potential natural gas shortages in the US. Utility stocks gained 2 % during September.

 Current Asset Class Observations:

  • US Equities - Large growth stocks gained 0.2%. Value stocks gained almost 2%. Small cap and mid cap stocks gained almost 4% each. Stocks of publicly traded real estate companies (REITs) took a breather but utilities gained as investors continue to see utilities as a source of stable income. Financial and health care stock prices appreciated over 1% while technology shares gained 5%. Commodities rose in value about 6%.

  • Foreign Equities - European stocks gained 4%. Pacific Rim stocks gained 4% and Japanese stocks lost 2% on fears their recovery is slipping. Latin American stocks gained 8% and emerging market stocks gained 5%.

  • Bonds - Bonds gained only slightly as higher oil prices had investors selling their bonds into the August price gains and realizing profits. Global bonds rose 1%. High yield bonds gained 1%. Inflation indexed bonds gained little.

 

 

Best Worst
September 2004
One
Month
Three
Months
Twelve
Months
Natural
Resources
9.62%
Natural
Resources
10.94%
Natural
Resources
43.86%
Emerging
Markets
5.55%
REIT
Funds
7.91%
REIT
Funds
25.06%
Small
Stocks
4.69%
Emerging
Markets
7.39%
Emerging
Markets
22.91%
NASDAQ
Composite
3.20%
Bonds

2.70%
Foreign
Stocks
22.08%
Foreign
Stocks
2.61%
Large
Value Stocks
1.04%
Large
Value Stocks
20.47%
Large
Value Stocks
1.90%
Foreign
Stocks
-0.28%
Small
Stocks
18.78%
S&P
500
1.08%
S&P
500
-1.87%
S&P
500
13.86%
REIT
Funds
0.26%
Small
Stocks
-2.85%
Large
Growth Stocks
7.52%
Large
Growth Stocks
0.24%
Large
Growth Stocks
-4.78%
NASDAQ
Composite
6.15%
Bonds

0.17%
NASDAQ
Composite
-7.37%
Bonds

2.66%
 
Consumer
Price Index
+0.20%
Consumer
Price Index
+0.20%
Consumer
Price Index
+2.40%
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 10/25/2004
Copyright 2004, 2005
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