Insightful Investing Newsletter October 2006
3rd Quarter 2006 Market Recap
 The market bounced back with style in the third quarter. as Large Cap Value investors gained 6.2% while Small Cap Growth stocks fell for the second straight quarter, dropping 1.8%. While the experts have been telling us all year that its time for Large Cap Growth to start dominating the investment cycle, they only got it half right. As it turned out, you would have been more “In Style” had you followed the experts than staying with your Small Cap Value stocks that have been leading the for the better part of this century. Even though it’s probably only a matter of time until the Growth Stocks take charge again, the best defense against poor market timing is a well diversified portfolio.
What was most surprising about this quarter was the bounce back in Real Estate. While home builders took a beating, REIT’s were up over 9% to keep that on top of returns over the past 1, 3, and 5 years. International stocks continued to perform well, bringing home a respectable 4% this quarter.
Now that the Fed has decided to at least take a vacation from raising interest rates, Bonds picked up almost 4% to gain back everything that they lost earlier in the year.
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