CGM Mutual Fund declined -5.2% during the second quarter of 2011 compared to the Standard and Poor’s 500 Index which grew 0.1% and the Merrill Lynch U.S. Corporate, Government and Mortgage Bond Index which increased 2.3%. For the first six months of the year, CGM Mutual Fund decreased -6.3%, the S&P 500 increased 6.0% and the Merrill Lynch U.S. Corporate, Government and Mortgage Bond Index grew 2.7%.
The second quarter of 2011 unfolded much like the first quarter when the Gross Domestic Product increased only 1.9%. Though the sluggish housing sector and relatively high unemployment numbers have hindered the economic recovery since it began, just one year earlier, first quarter GDP growth was a much higher 3.1%. The Conference Board’s Consumer Confidence Index dipped to 58.5 in June from a revised 61.7 in May, making June’s the lowest level thus far this year. Also, the current 9.1% unemployment rate is unusually high given the economic recovery has been underway for two years. Continue Reading »