Domestic growth funds outpaced value in all categories in the second quarter, Investor’s Business Daily reports.
Large-cap growth funds rose 6.55%, small-cap growth funds gained 7.49%, and mid-cap growth funds delivered 8.13%. U.S. diversified funds, meanwhile, ended the second quarter ahead 6.17%.
“The market has already returned our full-year expectations, posting positive results in the mid- to high single digits,” said Edward Maraccini of Johnson Asset Management. “We continue to expect below-potential economic growth in the second half of 2007.”
Bob Doll, vice chairman and chief investment officer, global equities, at BlackRock, agreed with Maraccini’s assessment, saying that he expects second-quarter GDP to come in at about 3% and to weaken in the second half because of a soft housing market. He added that he thinks the market has achieved more than half of its gains for the year and that it will become more volatile in the second half.