The stock market continued its climb in the fourth quarter with the Nasdaq Composite rising 12.5% followed by the S&P500 gaining 9.1% and Dow Jones Industrial Average returning 6.7%. Technology continued to lead in the fourth quarter despite the rotation into value that began in September returning 14.4% but was closely followed by Health Care returning 14.37%. Ten out of the eleven sectors in the S&P 500 posted positive returns for the quarter with Real Estate the sole decliner losing -0.5%. Small-cap stocks outperformed Large-cap stocks, which beat mid-cap names. Specifically, the Russell 2000 Index’s 9.9% return did better than the Russell 1000 Index and the Russell Mid-cap Index which posted gains of 9.0% and 7.1%, respectively, for the quarter. Growth stocks beat out value names, as the Russell 1000 Growth Index rose 10.6% compared to the 7.4% gain of the Russell 1000 Value Index over the same period. Bonds underperformed with the Barclays Aggregate Total Return underperforming all equity benchmarks with a 0.18% gain, while long-dated US Treasuries drastically underperformed, with the Barclays Long-Term Treasury Index losing -4.2%. The US Dollar Index lost -3.0% for the quarter, while oil gained 12.9%. Gold rose 2.9%.
Bill Miller's 4Q 2019 Market Letter
4Q 2019 Market Infographic
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