(PUB) Investing 2015

12

U.S. Stocks Rally Market Overview | Robert Goldsborough

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

11-30-15

1Mo

YTD

3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

0.6 0.2 0.0 1.1 0.6 0.8 2.8 2.3 2.0

5.4 0.8

16.1 14.4 13.2 14.5 13.7 13.9 14.7 13.4 12.9

13.3 12.6 11.8 11.5 11.4 11.6 11.9 11.0 10.6

7.5 6.7 5.9 7.5 6.9 7.1 7.6 6.8 6.7 5.1 4.4 5.5 4.6 2.4 4.2 6.5 8.6 6.6 7.4 8.7 7.3 4.5 4.1 5.1 3.5 4.6 2.5 6.5 4.7 5.5 5.4 3.8 3.5 4.0 5.9 3.2 4.3 4.2 4.0 4.5 7.2 4.7 1.0 3.0

-1.6

Mid-Cap Growth Mid-Cap Blend Mid-Cap Value

1.9

-1.2 -1.5

It was a tale of two different equity markets in November, as U.S. stocks mostly were up as data showed continued strong consumer confidence, improvement in most housing data, another solid labor market report, and some strong earnings releases from U.S. bellwethers. Across the globe, stock markets had a tougher go of it. A battery of economic reports, including a disap- pointing forecast from the Organisation for Economic Co-operation and Development for world growth in general and disappointing gross domestic product growth in Europe for the third quarter, held back foreign stocks. However, the market recouped some losses as investors saw signs of quantitative easing in Europe. Energy prices continued their decline amid investor concerns about rising crude oil inventory levels. The Brent Crude oil spot price finished November below $45 a barrel—a meaningful drop from the $49 -a-barrel price at the end of the previous month. The worst-performing U.S. equity sectors were the telecommunication services sector, which slid 1 . 2% , and the utilities sector, which gave up about 1 . 4% . Gold-rated Franklin Utilities FKUTX suffered more, dropping 2 . 4% during November. The financials sector was the best-performing U.S. equity sector, rising 3 . 2% as investors looked toward an interest-rate increase. Bronze-rated Davis Financial RPFGX lagged its category slightly in the month, returning 1 . 7% . The U.S. bond market declined in November, with bond yields for every maturity up meaningfully. K Contact Robert at robert.goldsborough@morningstar.com

Small Growth Small Blend Small Value

2.0

-0.4 -1.4 -0.7 -1.0 -0.2

Aggressive Allocation Conservative Allocation Moderate Allocation

-0.1 -0.6 -0.2

9.2 3.9 8.0

8.4 5.1 7.8

Communications

-1.4

1.9 2.6

9.5

8.6

Financial

2.3

14.8

11.3

Global Real Estate

-2.4

-1.2

5.7

7.4

Health

2.1

7.4

26.2 -6.1

22.3 -4.3 -23.2 11.8 12.3

12.1

Natural Resources

-2.1 -16.2

Equity Precious Metals

-8.3 -23.6 -30.2

-3.5

Real Estate Technology

-0.5

1.1 7.4

10.9 18.5

2.0

Utilities

-2.8

-9.8

8.0

8.9

S&P 500

0.4 1.4 3.3

3.1 2.1 0.6

16.1 15.2 14.9

14.3 13.0 12.0

S&P MidCap 400

Russell 2000

Diversified Pacific/Asia Diversified Emerging Mkts

-0.3

1.5

6.7

4.5

-2.5 -11.6

-3.3

-2.9

Europe Stock

-0.7 -0.9 -0.2 -1.2

3.6 0.2 2.7 6.7 2.7 0.2 -1.0

8.0 5.5 6.7 5.1 9.4 8.1 9.8

6.9 4.5 5.6 4.2 7.9 5.8 8.3

Foreign Large Blend Foreign Large Growth Foreign Large Value

Foreign Small/Mid Growth Foreign Small/Mid Value

0.6

-1.1 -0.5

World Stock

MSCI World

-0.5

0.9

11.0 -4.9

9.5

MSCI Emerging Markets

-2.5 -12.8

-3.5

MSCI EAFE MSCI Europe

-0.8 -1.8

1.4

6.4 6.4

5.4 6.1

-0.3

MSCI Latin America

-4.4 -29.6 -18.8

-15.1

-1.1

MSCI Pacific

-1.0

2.0

6.9

4.5

High Yield Bond

-1.9 -0.2 -0.3

-1.8 -1.4

2.5

5.0 1.5 3.2 5.0 1.6 3.0 5.8 4.8

Inflation-Protected Bond Intermediate-Term Bond

-2.7

0.3 2.3

1.4 2.1

Muni National Long

0.5

World Bond

-0.9

-3.5

-1.2

BarCap US Agg Bond TR USD BofAML US HY Master II TR BarCap Municipal TR USD

-0.4 -2.2

0.7

1.4 3.1 2.5

-2.1

0.4

2.6