Perspectives Newsletter: Q1, 2012
US stock indexes collectively posted their best first quarter returns since 1998, paced by financials up +22% and technology up +21% (more on the Apple effect below). The third anniversary of the S&P’s closing low of 676 on 3/9/09 found the index at 1366, up +101.9%, but still 13% below its all-time closing high of 1565 set on 10/9/07. Large cap growth stocks and emerging markets outpaced other sectors, reversing their underperformance from 2011. Behind the headline numbers were worrisome signs, however: lack of momentum and breadth, insider selling, and equity mutual fund outflows.
