• / Free eNewsletters & Magazine
  • / My Account
Home>Research & Insights>Investment Insights>Morningstar Market Commentary: Third Quarter 2006

Related Content

  1. Videos
  2. Articles
  1. Rising Rates and Your Steady-Eddie Stocks

    Steady dividend-payers may be under some pressure as interest rates rise in the nearer term, but that's no reason to dump them, says Morningstar analyst Alex Bryan.

  2. How Our Stock Star Ratings Have Performed

    Over the long run, cheap wide-moat stocks have handily outperformed the market, says Morningstar's Heather Brilliant.

  3. Does Higher Risk Really Mean Higher Return?

    Equity investors looking for higher returns should consider low-volatility, less liquid stocks, which outperform their higher-risk peers over the long term, says Zebra Capital chairman Roger Ibbotson.

  4. Ferri: Dividends May Lure Investors Back to Stocks

    Given current yields on stocks versus bonds, it may be an intelligent move for investors to allocate assets to dividend-payers, says Portfolio Solutions' Rick Ferri.

Morningstar Market Commentary: Third Quarter 2006

Large-company stocks lead market's charge during third quarter.

Sanjay Arya, 10/17/2006

Falling energy costs, diminishing concerns about interest rates and inflation, and optimism over corporate earnings helped rally the markets in the third quarter. The Morningstar US Market Index--which tracks the performance of the broad U.S. equity market--posted gains of 4.6% for the quarter. The resurgence of large-company stocks was the big story, as they have lagged mid- and small-caps during much of market rally since 2002.

In our quarterly review, Morningstar fund analyst John Coumarianos provides insight into the market's performance.

A recap of some of the key trends:

  • Large caps surge ahead. Large, high-quality companies, which tend to perform well during times of economic uncertainty, strongly rallied.
  • Value stocks continue to assert their dominance. Although growth stocks are beginning to catch up, value stocks continued to win the battle of the styles.
  • Passive benchmarks proved tough to beat. As a group, actively managed funds lagged their respective style indexes in all but one of the Morningstar Style Boxes.

Sanjay Arya is director of Morningstar Indexes.

1
blog comments powered by Disqus
Upcoming Events
Conferences
Webinars

©2014 Morningstar Advisor. All right reserved.