Wednesday, February 1, 2012

January 2012 Performance Data...A Good Start!

Today's post will be short and sweet.  I will be providing January return data for asset classes and sectors based upon the average mutual fund performance for each.  I will also be providing historical returns for my models, which can be found at

The overall markets were strong across the board.  The S&P 500 Index finished January with a gain of 4.48%, and the Wilshire Total Market Index was up 1.92%.  See my earlier post,, for information regarding the "January Effect".  The strongest domestic asset classes were small caps, and based on last year's selloff it should be no surprise that foreign small and mid caps as well as emerging markets were very strong in the month of January.  It should be noted that data from the Investment Company Institute (ICI) showed that investors flocked out of all equity funds in the year 2011.  Gold had a very strong January, and unlike most of 2011 the miners followed.  Equity Precious metals led all asset classes in January.

Asset Class Performance Data For The Month Of January 2012
Domestic Large Cap Value       +4.26%
Domestic Mid Cap Value          +5.74%
Domestic Small Cap Value       +6.68%
Foreign Larg Cap Value             +5.57%
Foreign Small/Mid Cap Value   +7.94%
Domestic Large Cap Growth     +6.30%
Domestic Mid Cap Growth        +6.78%
Domestic Small Cap Growth     +6.89%
Foreign Large Cap Growth         +6.47%
Diversified Emerging Markets   +9.78%
Equity Precious Metals               +11.94%
Rea Estate                                     +6.38%
Commodities Broad-Basket        +3.88%
National Municipals Long           +3.11%
Intermediate-Term Bond             +1.44%

Industrial's (led by manufacturing) and Technology funds were the biggest sector winners in January.  Health Care, which has traditionally been the best performing January sector finished the month with a gain of 6.82%.  Holding true to form, Utilities were  the weakest sector in January finishing the month down on average 1.5%.  For information detailing historical February sector strength see my earlier post here

Sector Equity Performance Data For The Month Of January 2012
Technology                                 +8.57%
Consumer Discretionary           +5.86%
Financials                                    +7.40%
Telecommunications                 +1.82%
Industrials                                   +9.32%
Utilities                                       -1.50%
Natural Resources                      +7.76%
Real Estate                                  +6.38%
Health Care                                 +6.82%
Consumer Staples                      +.830%
Equity Energy                             +3.84%
Rea Estate                                   +6.38%
Equity Energy                             +3.84%

My Mutual Fund Models:
As of 01/31/2012Model 1Model 2Model 3S&P Index
12 Mo *+4.17%+2.96%+1.33%+2.51%
3 Yr **+17.04%+20.04%+24.43%+19.24%
5 Yr **+6.81%+5.84%+4.11%+.21%
10 Yr **+9.09%+9.91%+10.94%+3.60%
Since Inception **

* Trailing 12 months
** Average Annual Return

My ETF Models:

As of 01/31/2012Model 1Model 2S&P Index
12 Mo *+4.92%+3.49%+2.51%
3 Yr **+15.10%+18.25%+19.24%
5 Yr **+4.94%+3.95%+.21%
10 Yr **N/AN/AN/A
Since Inception **

* Trailing 12 months
** Average Annual Return

Thank you and good luck everyone!

Jon R. Orcutt, founder of Allocation For Life, is an asset allocation strategist and author of “Master the Markets with Mutual Funds: A Common Sense Guide To Investing Success