S&P 500 Q1 returns totaled 12.59%. Best performance since Q1 1998. Surge fueled by good U.S. economic data, including unemployment rate ticking down and rising consumer spending. U.S small cap stocks underperformed U.S. large cap stocks but still managed a 12.44% gain. In non-U.S. developed markets and emerging markets small caps outperformed large caps.  Large value underperformed large growth around the globe. Small value outperformed small growth in the emerging markets and had mixed results in developed markets.

Next week marks the third anniversary of the bear market low (March 2009). The S&P 500 posted another broad-based gain, adding 4.06% in February, for an 8.59% gain YTD. It is the index’s best start since realizing 17.36% in January & February 1987. The S&P Small Cap 600 underperformed the mid and large-cap indices in February, but over the trailing ten-year period, the S&P Small Cap 600 has returned more than twice as much as the S&P 500 (7.68% versus 3.52%).

The S&P 500 gained 4.48% in January with dividends added, its best opening month since 1997 when the index increased 6.13% and went on to return  31.01% for the year.