(PUB) Investing 2016

12

U.S. Stocks Flat in February Market Overview | Robert Goldsborough

Benchmark Performance

Total Return % Through

A N N U A L I Z E D

02-29-16

1Mo YTD 3Yr

5Yr

10Yr

Large Growth Large Blend Large Value

-1.1 -8.1 10.0 8.6 6.1 -0.3 -5.7 8.7 8.3 5.5 0.1 -5.2 7.2 7.4 4.6 -0.1 -8.4 7.1 6.5 5.6 0.8 -5.6 6.8 6.6 5.4 0.8 -5.6 6.5 6.5 5.5 -1.0 -10.7 5.5 5.7 5.1 0.7 -6.7 5.3 5.6 4.8 1.2 -5.5 4.7 5.4 4.7 -0.4 -5.1 4.4 4.6 3.8 0.0 -1.8 1.8 3.4 3.8 -0.2 -3.7 4.4 5.0 4.6 1.8 -0.4 7.6 6.2 3.8 -2.8 -11.2 5.0 5.0 0.6 -0.2 -4.8 1.5 4.3 2.5 -2.8 -16.2 16.2 16.2 9.6 2.1 -4.4 -10.7 -8.7 -1.3 29.9 32.1 -17.3 -19.0 -2.7 -0.5 -4.6 7.0 8.4 5.2 -0.9 -9.1 11.8 7.1 6.8 1.2 3.0 6.5 7.6 6.2 -0.1 -5.1 10.7 10.0 6.4 1.4 -4.4 8.2 8.3 7.2 -0.2 -8.8 5.8 6.1 5.0 -2.9 -8.6 0.5 1.3 2.3 -1.0 -6.4 -8.0 -5.0 1.5 -2.3 -8.1 2.2 2.0 2.7 -2.5 -8.3 -0.2 0.0 1.3 -2.3 -8.1 1.1 1.5 2.5 -2.7 -8.2 -0.7 -0.7 0.3 -1.9 -8.1 4.3 4.1 4.2 -0.7 -7.6 1.9 1.2 2.4 -0.9 -6.3 4.2 4.2 3.7 -0.7 -6.7 5.3 4.9 3.8 -0.2 -6.6 -8.9 -5.4 1.8 -1.8 -8.9 0.4 0.6 1.5 -1.8 -8.3 0.6 0.7 1.8 3.8 -1.0 -19.9 -14.1 -0.6 -1.9 -10.2 -0.1 0.4 0.8 0.2 -1.3 0.2 3.2 5.2 0.7 1.5 -2.1 1.7 3.2 0.4 1.2 1.5 3.3 4.3 0.0 1.0 2.9 5.8 4.2

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

U.S. stocks finished February about where they started. The S&P 500 and the Russell 2000 Index were flat in February. Economic data was mixed as a rally in oil prices helped but was offset by concerns about banks and the threat of a recession. Overseas markets fared worse in February. European stocks in particular were dragged down by concerns over the United Kingdom’s possible exit from the Euro- pean Union and difficulty at German banks. Emerging- markets stocks were down slightly because of Chinese and Russian stocks’ declines. Brent crude prices ended February at about $36.50 a barrel, which was its highest level since Jan. 5 and about 10% above its price at the end of January. Some- what counterintuitively, the energy sector was one of the two worst-performing U.S. equity sectors in February, sliding 2.4%. Vanguard Energy VGENX, with a Morningstar Analyst Rating of Neutral, did even worse, declining almost 2.5%. The best-performing U.S. equity sector was the materials sector, which rallied on a strong earnings release from bellwether Dow Chemical DOW, which posted strong volumes and profit growth in advance of its pending merger with DuPont DD. The bondlike utilities sector also rallied, as did the industrials sector. The utilities sector’s strength was good news for Gold-rated Franklin Utilities FKUTX, which rose 2.2%. K Contact Robert at robert.goldsborough@morningstar.com

Small Growth Small Blend Small Value

Aggressive Allocation Conservative Allocation Moderate Allocation

Communications

Financial

Global Real Estate

Health

Natural Resources

Equity Precious Metals

Real Estate Technology

Utilities

S&P 500

S&P MidCap 400

Russell 2000

Diversified Pacific/Asia Diversified Emerging Mkts

Europe Stock

Foreign Large Blend Foreign Large Growth Foreign Large Value

Foreign Small/Mid Growth Foreign Small/Mid Value

World Stock

MSCI World

MSCI Emerging Markets

MSCI EAFE MSCI Europe

MSCI Latin America

MSCI Pacific

High Yield Bond

Inflation-Protected Bond Intermediate-Term Bond

Muni National Long

World Bond 1.0 1.1 -0.9 1.3 3.9 BarCap US Agg Bond TR USD 0.9 2.1 2.2 3.5 4.5 BofAML US HY Master II TR 0.5 -1.1 0.6 3.9 6.5 BarCap Municipal TR USD 0.2 1.4 3.4 5.5 4.8