• / Free eNewsletters & Magazine
  • / My Account
Home>Research & Insights>Investment Insights>Morningstar Market Commentary: First 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. Ibbotson: Unpopularity Pays

    New research shows that holding unpopular stocks and avoiding hot ones can lead to outperformance over time, says Zebra Capital Management's Roger Ibbotson.

  3. 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.

  4. 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.

Morningstar Market Commentary: First Quarter 2006

Stocks pick up where they left off in 2005, make good gains.

Sanjay Arya, 04/13/2006

In the first quarter of 2006, the U.S. stock market picked up where it left off in the fourth quarter of 2005. In an all too familiar pattern, small stocks continued to lead the way as all nine Morningstar style indexes ended the quarter on a positive note. The Morningstar US Market Index--which tracks performance of the broad U.S. equity market--gained 5.2% for the first quarter.

In our quarterly review, Morningstar fund analyst John Courmarianos provides insights into the market's performance:

To recap some of the key trends:

  • Small caps are hard to beat. Small-cap stocks outperformed their mid- and large-cap peers by a wide margin.
  • Value stocks maintained their edge. Although core and growth stocks posted respectable gains, value stocks continue to lead the pack.
  • Passive benchmarks proved a tough bogy to beat. As a group, actively managed funds were able to beat their respective style index in only three of the nine 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.