Investing June 28, 2002

In Q2, Gold Golden, Real Estate Real Good

The traditional bear market havens of gold and real estate fared best over the second quarter.
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At the other end of the scale, over the period:

  • domestic stock funds were down 12%
  • international equity funds lost over 5%
  • domestic hybrid funds dropped 6%.

The technology fund and the communications fund categories disappointed investors yet again, each sliding 28% for quarter, Morningstar reported.

Golden

Precious-metals sector funds were the best-performing mutual fund group, surging by 14% over the quarter, bringing year-to-date gains to 54%, according to figures from Morningstar.

The sector also finished as the best mutual fund category in the first quarter of 2002 and for the full-year 2001, as investors, scared off by accounting and corporate governance fiascos, fled US stocks in droves.

According to the investment research firm, the best performing precious-metals funds over the quarter were:

  • US Global Investors World Precious Minerals, which gained 36%
  • US Global Investors Gold Shares, which surged by 24%
  • Van Eck Investors Gold, which increased 20%.

Prime Real Estate

The real estate fund category, which gained 4% over the period, was the only US equity fund group to finish the quarter on a positive note.
 
Some of the best-performing funds in this sector include:

  • Security Capital European Real Estate, which rose 14%
  • Morgan Stanley Institutional European Real Estate, which increased 13%
  • Alpine US Real Estate Equity, which was up 10%.

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