Stock Index, S&P Sector & Bond Index performance numbers, week ending 07/18/2008

[A HERETIC I AM]

                             STOCK INDEX PERFORMANCE

Index                               Week     YTD      12-mo.    2007    5-yr.
DOW JONES 30 (11497)                3.63%  -12.12%   -15.34%    8.88%   6.99%
S&P 500 (1261)                      1.73%  -13.15%   -16.78%    5.49%   6.84%
NASDAQ 100 (1823)                   0.68%  -12.34%   -10.08%   19.24%   8.09%
S&P 500/Citigroup Growth            0.18%  -10.71%   -11.48%    9.25%   5.77%
S&P 500/Citigroup Value             3.56%  -15.77%   -21.96%    2.03%   7.87%
S&P MidCap 400/Citigroup Growth     0.82%   -3.99%    -6.52%   13.55%  10.93%
S&P MidCap 400/Citigroup Value      2.42%   -7.89%   -16.69%    2.84%  11.99%
S&P SmallCap600/Citigroup Growth    2.20%   -6.41%   -12.60%    5.66%  11.53%
S&P SmallCap600/Citigroup Value     3.15%   -8.34%   -20.44%   -5.19%  10.32%
MSCI EAFE                           1.21%  -13.63%   -14.91%   11.76%  16.35%
MSCI World (ex US)                  1.02%  -12.67%   -13.71%   13.04%  16.98%
MSCI World                          1.28%  -12.68%   -14.83%    9.69%  11.69%
MSCI Emerging Markets              -1.84%  -16.86%    -7.57%   39.23%  26.93%

Source: Bloomberg. Returns are total returns. The 5-yr. return is an average annual.
One-week, YTD, 12-mo. and 5-yr. performance returns calculated through 07/18/08.

                             S&P SECTOR PERFORMANCE

Index                        Week     YTD     12-mo.    2007    5-yr.
Consumer Discretionary       6.54%  -12.58%  -27.30%  -13.21%   1.73%
Consumer Staples             0.03%   -5.85%    1.02%   14.36%   8.46%
Energy                      -5.55%   -4.32%    2.34%   34.41%  26.44%
Financials                  11.45%  -27.08%  -40.31%  -18.52%  -1.43%
Health Care                  2.09%   -9.33%   -9.64%    7.32%   3.11%
Industrials                  2.34%  -13.18%  -16.97%   12.04%   9.57%
Information Technology       1.21%  -14.22%  -12.88%   16.30%   5.97%
Materials                   -0.79%   -4.53%   -6.01%   22.53%  16.32%
Telecom Services            -0.18%  -19.49%  -21.60%   11.88%   8.35%
Utilities                   -4.39%   -7.55%   -1.32%   19.38%  17.04%

Source: Bloomberg. Returns are total returns. The 5-yr. return is an average annual.
One-week, YTD, 12-mo. and 5-yr. performance returns calculated through 07/18/08.

                                BOND INDEX PERFORMANCE

Index                                Week     YTD     12-mo.   2007    5-yr.
U.S. Treasury: Intermediate         -0.30%    2.33%    9.34%   8.83%   3.76%
GNMA 30 Year                        -1.60%    0.55%    6.47%   6.97%   4.29%
U.S. Aggregate                      -1.15%    0.19%    5.92%   6.97%   3.92%
U.S. Corporate High Yield            0.42%   -2.49%   -2.82%   1.88%   6.51%
U.S. Corporate Investment Grade     -1.38%   -2.36%    1.29%   4.56%   3.11%
Municipal Bond: Long Bond (22+)     -1.97%   -2.64%   -1.92%   0.46%   4.16%
Global Aggregate                    -0.85%    3.60%   11.47%   9.48%   6.28%

Source: Lehman Bros. Returns include reinvested interest. The 5-yr.return is an average annual.
One-week, YTD, 12-mo. and 5-yr. performance returns calculated through 07/18/08.

                          KEY RATES

                         As of 07/18                   
Fed Funds              2.00%     5-YR CD          4.04%
LIBOR (1-month)        2.46%     2-YR Note        2.65%
CPI - Headline         5.00%     5-YR Note        3.42%
CPI - Core             2.40%    10-YR Note        4.09%
Money Market Accts.    2.38%    30-YR T-Bond      4.65%
Money Market Funds     1.87%    30-YR Mortgage    6.08%
6-mo. CD               3.06%    Prime Rate        5.00%
1-YR CD                3.47%    Bond Buyer 40     5.29%

Sources: Bankrate.com, iMoneyNet.com and Bloomberg

                        WEEKLY FUND FLOWS

                         Week of 07/16      Previous
Equity Funds               $1.7 B            $1.6 B
Including ETF activity, Domestic funds reporting net inflows of
$3.614 B and Non-domestic funds reporting net outflows of -$1.945 B.
Bond Funds                -$972 M           -$351 M
Municipal Bond Funds       $251 M            $272 M
Money Markets            $1.099 B         $38.462 B

Source: AMG Data Services

FACTOIDS FOR THE WEEK OF JULY 14TH - JULY 18TH

Monday, July 14, 2008
Researcher Reis Inc. reported that the average vacancy rate at
neighborhood (up to 150,000 square feet and anchored by a supermarket)
and community (up to 350,000 square feet and open-air) malls rose to 8.2%
in Q2’08, up from 7.3% a year ago and the highest level since 1995,
according to Bloomberg. Vacancies increased to 6.3% at regional (up to
800,000 square feet and anchored by at least two department stores) and
super-regional (800,000+ square feet) malls, up from 5.6% a year ago and
the highest since Q1’02.

Tuesday, July 15, 2008
Financial institutions in need of securing capital have tapped the preferred
securities market aggressively in 2008. Preferred stock issuance totaled
$73.1 billion in the first six months of 2008, up 271% from the $19.7 billion
issued in the first half of 2007, according to data from Thomson Financial. If
you add November and December of 2007 to this year’s $73.1 billion take,
the total jumps to $100.5 billion. Prior to 2007 ($60.0 billion), the largest
calendar year for new issues was $41.3 billion in 2001.

Wednesday, July 16, 2008
With Brazil’s economy prospering from the boom in natural resources and
agriculture it makes sense that a surge in domestic consumption would
follow. Retail, supermarket and grocery store sales increased more than 10%
in four of the first six months of 2008, according to Bloomberg. No less than
30 malls are under development after sales jumped 16% to $58 billion reais
at the country’s 387 shopping centers in 2007, according to Marcelo
Carvalho, president of Brazil’s Association of Shopping Centers.

Thursday, July 17, 2008
Worldwide PC shipments grew 15.3% (y-o-y) in the second quarter of 2008,
according to IDC's Worldwide Quarterly PC Tracker. Shipments grew by
14.9% in Q1’08. Total units sold approached 72 million in Q2. HP remains
the top vendor by market share followed by Dell. Dell, however, posted a
higher Q2 growth rate (+21.4%) than HP (+16.8%). Demand was strongest
in Europe, the Middle East and Africa.

Friday, July 18, 2008
There are 44 actively managed mutual funds with $6.62 billion in total assets
targeting just financial stocks, according to Morningstar. Over the past three
months, this group of funds posted an average loss of 20.14%, over seven
percentage points worse than real estate, which was the second worst
performing group in the industry. The S&P Financials Index was off 47% from
its 2007 high at the beginning of this week. The silver lining is there is
opportunity for the taking. Banks, for example, currently trade at 0.8 to 0.9
times book value, vs. their normal range of 1.5 to 2.0, according to Forbes.

The above was gathered by and posted from
FIRST TRUST ADVISORS L.P. • APPROVED FOR PUBLIC USE • 07/21/08

Web link to this and all previous weekly information is here

[Common Sense Party]

1. Definite bear market in Value stocks.

Financials are down 40% over the last 12 months? There may be some nice opportunities there--a lot of companies that aren't involved in the mortgage fiasco are also being dragged down in price. I'm thinking insurance companies...? Those with regular premiums coming in...

I don't do individual stocks, but many fund managers are sure to look closely at some of these depressed names.

[A HERETIC I AM]

2. I took a look at a Financial Sector ETF last week....

One of the iShares. It had a very good week. Of course, it had been beaten up pretty bad prior, but I agree with you, there are plenty of opportunities out there right now.

I've been looking at a few of the Insurance companies also. Same thing. Lots of attractive issues.

[Common Sense Party]

3. I wish we had some sector funds in my 401(k).

I'd like a real estate and a financial fund right about now.

[A HERETIC I AM]

4. If there's anyone on this board that knows their way around a 401(K), it's you....

so I'll ask what could likely be a dumb question...

Would an in-service withdrawal help you?

Again, I know you know these ins and outs, but perhaps increasing your IRA balance would give you the flexibility you seek.


I know how you feel re: limited 401(K) choices. I've recently been through a change that reduced my 401 choices from about 45 to 12 or so. It sucks.

[Common Sense Party]

5. Well, in my case, probably not.

An employer's 401(k) plan document has to allow for in-service withdrawals, and most do not (my employer does not).

When an employer's plan DOES allow in-service withdrawals, it is usually after a certain age, say, 55 or 59 1/2, and if done correctly, the distribution can be done as a rollover to an IRA to avoid taxes.

I'm far too young for that. At my age, about the only withdrawal I can do would be a hardship withdrawal, if my plan document allows it, but only if I need the money for something like: purchasing a first home, avoiding eviction or foreclosure from a primary residence, major medical expenses not covered by insurance, etc. And then, I'm not allowed a rollover to an IRA; I can only take a distribution and pay my taxes and my 10% early withdrawal penalty.

No, I think I may just reduce my contribution to the 401 for a while and put some extra money in a Roth IRA, and buy some ETFs.