Stock Market Report An Amazing 2013 Investment Year: Great for Stocks but Lousy for Bonds. Fun Stocks Index Breaks Records (up 76.44% for 2013 and up 627.07% in 4 years since January 1, 2009)

2013 is over. And if your portfolio was heavily allocated to stocks, you are a “happy camper.” S&P 500 and Dow Jones stock indexes beat all-time records and the NASDAQ was up 35% for the year. On the other hand, if your portfolio was too much in bonds, you probably experienced a very low or even a negative return for the year due to the rise of interest rates, beginning in March 2013.

Our Fun Stocks Index did better than all the major indexes. Here are the comparative results of the indexes we track versus our Fun Stocks Index:

      For 2013 (one year)

  • Fun Stocks Index (FSI)              up 76.44%
  • Dow Jones (DIA ETF) Index      up 26.72%
  • NASDAQ (QQQ ETF) Index      up 35.05%
  • S&P 500 (SPY ETF) Index          up 29.69%

      Since 1/1/2009                           

  • Fun Stocks Index (FSI)              up 627.07%
  • Dow Jones (DIA ETF) Index      up 89.07%
  • NASDAQ (QQQ ETF) Index      up 195.76%
  • S&P 500 (SPY ETF) Index          up 104.67%

Much of the rise in stock prices can be directly attributed to the Federal Reserve’s (FED’s) easy monetary policies known as QE3 (where they buy U.S. Treasury bonds to reduce interest rates). The longer the FED expressed its desire to maintain the QE3 activities, the more confident the markets felt about the U.S. economy and about paying higher prices for stocks. The question now is whether these economic dynamics will continue into 2014. The investment potential for 2014 will be guided by the economic reports, corporate profit projections, and FED policy in January. Stay tuned…

Meanwhile, we maintain the same allocation for our TSOA Retirement Portfolios, so there are no changes. There are, however, some changes to our Fun Stocks Index. Check them out…

Good investing!

Jim Tso


December 2013 Year-End Stock Market Report



Jim Tso wants to “give back” and share his 35+ years of successful personal money management experience to help others to achieve their financial goals. Jim created this InvestBetterSpendSmarter blog (IBSS) to provide you with free investing, planning, savings, retirement, and inspirational tips derived from his unique, innovative, and proven approaches to money management. He welcomes and appreciates your feedback.

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