Most Sectors Slide, but Gold and Silver Shine

The old saw about the market being ruled by fear and greed proved true once again in 2002. Fear of recession, limited corporate profits, accounting scandals and potential military action all put investors on edge and pushed the market to multiyear lows.

In mid-October, investors went on an eight-week buying binge, sending the averages up some 20% to 30% from the October lows. Still, the market is poised to book its third consecutive down year, and most broad measures are still below the levels before the terrorist attacks on Sept. 11, 2001.

Bonds once again proved to be a better place to park your money, as the 10-year Treasury note has gained about 9.7% this year.

Cloudy, With a Gold and Silver Lining

Most industry indexes posted hefty losses, but there was one notable winner, and several individual stocks posted healthy gains.

Not surprisingly, the American Stock Exchange Airline Index dropped dramatically, losing 58% for the year to date. This follows a 50% decline in 2001. The weak economy, labor woes and continued fallout from Sept. 11 ultimately led to bankruptcy filings for US Airways and UAL, the parent of United Airlines.

The sleeper of the year -- and a company that isn't part of the Amex airline index -- was Ryanair RYAAY. The Ireland-based low-cost, short-haul carrier has seen its shares climb 29% so far this year.

Another Rough Year How the major indices looked by mid-December
Index	High	Low	12/18/2002 Close	YTD % Change
Dow Jones 30	10635.25	7286.27	8447.35	-15.8
S&P 500	1172.51	776.76	891.12	-22.4
Nasdaq	2059.38	1114.11	1361.51	-30.2
Russell 2000	522.95	327.04	389.93	-20.2
Wilshire 5000	10953.64	7342.84	8431.32	-21.2
Source: TSC Research

The Philadelphia Gold and Silver Index, up 42% for the year to date, is the standout. But even within the index, there is a wide divergence in performance among the individual components. Three out of the eight companies in the index are actually down for the year.

The two primary stocks carrying the measure higher were Anglogold AU, up 83%, and Newmont Mining NEM, up 52%.