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Market Update

Week in Review: Anthrax, Poor Earnings Spook Markets

Late-Friday rally doesn't erase week's losses.

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The markets ended the week on a good note, but Friday's late rally couldn't erase the week's earlier losses. Anthrax worries and a few bad earnings reports took their toll. The Dow Jones Industrial average ended the week off 1.5% at 9,204, while the S&P 500 index declined 1.6% to 1,073.5. The Nasdaq was also in the red, down 1.9% to 1,671.3. 

Fund Category Returns
Economic and geopolitical jitters help explain why the precious-metals category produced the best returns of any fund category, up 2.53% for the week through Thursday. The group's top performers, including Tocqueville Gold [ticker TGLDX], invest purely in the gold industry, which is thought of as a good inflation hedge and safe haven during uncertain times, according to Morningstar fund analyst Christopher Davis. But would-be investors should watch out for high expenses of some of these recent outperfomers. U.S. Global Investors Gold Shares' (USERX) expense ratio is a staggering 5.79%. A better choice among the gold-only funds would be American Century Global Gold  (BGEIX), Davis said.

Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.