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Data as of 4/5/13
Standard & Poor's 500 (Domestic Stocks) 10-year Treasury Note (Yield Only) Gold (per ounce) DJ-UBS Commodity Index DJ Equity All REIT TR Index
1Week
-1.0% 1.7 -1.9 -2.5 2.0
Y-T-D
8.9% N/A -7.4 -3.6 10.0
1Year
2.2 -3.9 -5.3 20.4
35Year Year
2.5% 3.6 11.1 -8.4 6.2 4.0 11.5 -0.3 16.9
10Year
5.9% 4.0 17.2 1.9 12.4
11.1% 9.4%
Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance, Barrons, djindexes.com, London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
THERES A NEW BRIC IN TOWN. Youve probably heard of the BRIC countries Brazil,
Russia, India, and China. The nickname was created in 2001when Jim ONeill, an economist and the future Chairman of Goldman Sachs, used it to describe the countries of the world that would drive future economic growth. He was right about the fact they would drive economic growth. According to The Economist, The BRICS alone have been responsible for 55 percent of global growth since the end of 2009. Dragged down by debt and austerity, the 23 countries that make up the developed world contributed just 20 percent to that growth. You may have noticed The Economist capitalized the S in BRICS. Thats because South Africa recently joined the team. Its the smallest BRICS country with a population of just 50 million compared to more than 1 billion for both China and India. South Africas GDP isnt all that impressive either. It ranks 28th in the world, according to The Guardian, while China ranks 2nd, Brazil 6th, Russia 9th, and India 10th. The statistical comparison begs the question: Why was South Africa added to the list of the worlds powerful emerging countries? According to The Economist, geographic inequity was the driving force behind the new addition. The original BRICs did not include any countries in Africa which currently is the worlds fastest growing continent. Africas gross domestic product (GDP) growth is averaging about 6 percent a year, a pace that is expected to remain constant for another decade. Over the decade ending in December 2012 Africa has seen: Foreign direct investment more than tripled to $46 billion A 30 percent increase in real income per person A 74 percent decline in HIV infections A 30 percent decline in malaria deaths Mobile communications grow: now there are three mobile phones for every four people A 10 percent increase in life expectancy Steeply falling infant mortality rates An increase in secondary school enrollment Source: The Economist Africa is changing so rapidly many believe the continent deserves to have a voice as an emerging region of the world. How to give it that voice? The solution was to add South Africa, the continents largest economy, to the BRICS.
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* This newsletter was prepared by Peak Advisor Alliance. * The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. * The DJ Global ex US is an unmanaged group of non-U.S. securities designed to reflect the performance of the global equity securities that have readily available prices. * The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. * Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association. Precious metal investing is subject to substantial fluctuation and potential for loss. * The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. * The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. * Yahoo! Finance is the source for any reference to the performance of an index between two specific periods. * Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. * Past performance does not guarantee future results. * You cannot invest directly in an index. * Consult your financial professional before making any investment decision. * To unsubscribe from the Patty Loris Weekly Commentary please reply to this e-mail with