Quarterly stock market review - 2nd quarter 2009

July 9, 9:47 AMBaltimore Financial ExaminerTom Taylor, CPA/PFS

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Chances are you may be more ready to open your account statements then you have been in the past year.  With the rapid stock market declines in October and November of 2008, followed by a near-term market bottom in March 2009, most investors stuck their heads in the sand and refused to open brokerage, IRA and 401k statements.  As it appears the economy is no longer on the brink of destruction and the recession is nearing an end, the stock market has discounted a more positive environment and investors may be more inclined to "take a look."

While I believe any financial advisor would not recommend doing so, I concur that it's a natural human reaction to not deal with all the negativity.  However, now is the time to talk to your financial advisor to make sure your financial plan is on target and investment strategy is consistent with your risk tolerance, time horizon and goals.

The second quarter of 2009, ending on June 30, 2009 was a different story.  The S&P 500 rallied 15.2%, the Dow rallied 11.0% and the leader of the major market indexes, the NASDAQ rallied 20.0%.  These gains pale in comparison to the rise in crude oil prices, which gained 44% in the quarter.  If you owned a good Energy and Natural Resources fund in your portfolio, chances are you experienced nice gains for the second quarter.

Here's a link to my recent newsletter that covers the quarterly stock market and other market activity during the second quarter.  Included is an economic overview and some interesting "investor almanac" data such as what asst class outperforms the S&P 500 the year following each of the last six recessions.

Quarterly stock market review - 2nd quarter 2009

Tom Taylor, CPA is a fee-only, independent Financial Planner and Certified Public Accountant and can be contacted at Thoma Capital Management or Taylor & Company in Towson, MD.  He is a member of NAPFA and the MACPA and AICPA.