Racking up a second consecutive negative month, the Wilshire 5000 Total Market IndexSM, the original pure and completeSM measure of the U.S. stock market, closed May 31, 2012 at 13,537.87, down –6.15 percent for the month with dividends. Without dividends reinvested, the estimated market value decreased $1.1 trillion in May, according to Wilshire Associates Incorporated (“Wilshire®”), a diversified global financial services firm.
“May was the second of two back-to-back monthly declines for the Wilshire 5000SM, which was the first time that has happened since September 2011 concluded five consecutive monthly declines,” said Robert J. Waid, managing director, Wilshire Associates. “There were no rays of sunshine with all size and style categories down more than five percent. Once again, public real estate was the best performer with both the Wilshire US Real Estate Securities IndexSM and Wilshire US REIT IndexSM coming in with the smallest loses at -4.70 and -4.56 percent, respectively. This allowed them to remain the only U.S. market segment with a positive 12-month return,” he added.
“However, not all was gloom and doom in May with Telecom Services and Utilities managing positive returns. Telecom Services’ performance of 2.11 percent was rung up mainly on the returns by AT&T and Verizon’s of 3.83 and 3.12 percent, respectively. These two companies account for approximately 80 percent of the Sector, so they account for most of the sector’s performance. Utilities barely made it into positive territory with a 0.03 percent return. The Wilshire US Mid-Cap IndexSM was the worst performing size category for the month losing –7.30. Growth stocks, especially Wilshire US Mid-Cap GrowthSM and Wilshire US Small-Cap GrowthSM led the month’s decline,” he noted.
Waid noted that the volatility of the market for the past five years has waned since late last year with May 31, 2012 marking the 111th day in a row where the Wilshire 5000 did not move more than two percent. Some items put this string of low volatility days in perspective:
- February 26, 2007 completed 164 days of movement of less than two percent;
- July 23, 2007 completed 91 days of less than two percent;
- The longest string from July 23, 2007 to date was 55 days concluding April 26, 2010;
- The last time the Wilshire 5000 had a change of two percent or more change was December 20, 2011’s 3.05 percent gain;
- 2007 had 18 of 251 trading days move more than two percent or 1.5 times a month;
- 2008 had 72 of 253 trading days move more than two percent or 6.0 times a month (16 were above five percent);
- 2009 had 58 of 252 trading days move more than two percent or 4.8 times a month;
- 2010 had 22 of 252 trading days move more than two percent or 1.8 times a month;
- 2011 had 43 of 253 trading days move more than two percent or 3.6 times a month; and
- 2012 had 0 of 103 trading days move more than two percent.
All values as of May 31, 2012. Index values are in price values. All returns are total returns and reflect float-adjusted market capitalization. Returns are annualized for periods greater than one year.