Quarterly Recap - 2011 Fourth Quarter
Global equity markets ended multi-year winning streaks as 2011 index measures for stocks and commodities registered their worst annual performances since the U.S. financial crisis of 2008. Frenzied trading halted a two-year U.S. rally as Europe's still unresolved sovereign debt crisis prompted fears over higher borrowing costs that diminished confidence and earnings outlooks. For all the market's bravado and extreme volatility this year, the S&P 500 Index ended with a near-zero point loss of just 0.04 (4/100th) of a point, the closest flat line performance since 1947 when it closed exactly unchanged. Thanks to reinvested dividends, the index returned its dividend payout yield of 2.1%. The Dow Jones Industrial Average rose 5.5% on the year (+8.4% including dividends), while the NASDAQ Composite fell 1.8% in 2011 (-0.8% total return).
1. Morningstar Direct (all performance percentages are total return based, which include reinvested dividend, interest)
The views expressed here are those of the Research Department, Cetera Financial Group, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot directly invest in unmanaged indices. Please consult your financial advisor for more information.