With the beginning of a new fiscal quarter this month, many hoped for an end to the credit crisis that has plagued the market thus far this year. Yet these hopes have been disbanded as threats of further losses throughout financial institutions, concerns of inflation, and record high oil prices continue to persist.
Overall, U.S. diversified stock funds earned a scant 0.13%. Two of the bright spots, however, were small-cap funds, up 3.56%, and mid-cap funds, up 4.99%.
Anything related to natural resources and commodities was certainly in play in the second quarter, said Jeff Tjornehoj, Lippers senior analyst. As of June 30th, on a year-to-date basis, commodity funds had increased 30% and natural resource funds had a 19.57% return.