Domestic stocks continued their consecutive-gain streak by posting another month of positive return in May. With a 2.3% gain for May, that now makes seven straight positive months for the S&P 500 Index, its longest such streak since an eight-month run from September 2010 to April 2011.
Meanwhile, after outperforming by a wide margin in April, foreign stocks significantly underperformed domestic stocks in May with the MSCI EAFE Index declining -2.3%. Fortunately for our allocation, much of the decline in the international indices last month stemmed from a -12% correction in Australia and a -7% loss in Latin America; both are areas of the world that we are not investing in at this time. As a result, our diversified foreign funds in Class 3 were up in May, although they lagged the S&P 500…
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