SOURCE: Russell Investments

Russell Investments

December 18, 2012 13:10 ET

Housing Affected Sectors and Industries of the U.S. Large-Cap Russell 1000® Index Have Positive Returns December Month-to-Date (a/o 12/17) as Russell Predicts Home Construction Rise in 2013

SEATTLE, WA--(Marketwire - Dec 18, 2012) -  Sectors and industries within the Russell 1000® Index affected by new home construction consistently outperformed the Russell 1000® Index in September, October and November of 2012. And ahead of the Wednesday, December 19 Housing Starts report, the Consumer Discretionary, Materials and Processing, Homebuilding, and Building Materials sectors and industries of the U.S. large-cap Russell 1000® Index exceeded the total return of the parent index for December month-to-date as of 12/17.

In Russell Investments' recently released 2013 Annual Global Outlook, its team of global investment strategists forecast that additional quantitative easing measures announced by the Fed at its recent FOMC meeting are designed to help jobs and housing and may generate a housing uptick in the coming year. 

"Along with job growth, the Fed appears to be targeting the housing market as a potential market booster in 2013, as they believe this is an industry where they can get more bang for their buck," explains Wood. "For this reason, we expect there will be a rise in home construction next year, which could partially offset modest fiscal tightening and result in a growth rate for real GDP near 2% in 2013."

  September 2012 October 2012 November 2012 December 2012 MTD as of 12/17
Russell 1000® Index 2.6% -1.7% 0.8% 1.1%
Russell 1000® Index Consumer Discretionary Sector 3.0% -0.6% 2.6% 0.2%
Russell 1000® Index Homebuilding Industry 6.7% 5.6% 2.9% 3.4%
Russell 1000® Index Materials & Processing Sector 3.5% -1.0% 1.9% 1.2%
Russell 1000® Index Building Materials Industry 9.5% -0.1% 9.8% 1.0%

Source: Russell Investments

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.

Opinions expressed by Mr. Wood reflect market performance and observations as of December 17, 2012 and are subject to change at any time based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.

The Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here: http://www.russell.com/indexes/data/daily_total_returns_global.asp

Russell Investment Group is a Washington, USA Corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.