State Farm Market Recap November 2012.
(Speaker: State Farm Audio Broadcaster) Hello, and welcome to the State Farm 
Market Recap audio broadcast. Each month we offer a perspective on recent events
impacting the financial markets in the U.S. and abroad. This is the recap for 
the month of November, 2012. Equity markets edged higher in November despite the
uncertainty of the U.S. presidential election, and the volatility brought on by 
the post-election fiscal cliff budget negotiations occurring within the U.S. 
Congress. 
Now, let's first review the U.S. equities markets. In the U.S., stocks made 
modest advancements in November after overcoming another month of volatility. 
Post the presidential election, the S&P 500 index dropped nearly 4%, before 
climbing its way back and ending the month in positive territory. During the 
month, the U.S. Commerce Department announced that real gross domestic product, 
GDP, gained a moderate 2.7% in the third quarter, which was the best increase in
GDP in nearly three years. 
For the month, mid cap stocks led all the major stock indices upward, gaining 
1.6%. Large cap stocks and small cap stocks also advanced for the month, posting
total returns of 0.6% and 0.5%, respectively. Year to date through November, 
large cap stocks, as measured by the S&P 500 index, have returned 15%, followed 
by mid cap stocks, as measured by the Russell Midcap Index, and small cap 
stocks, as measured by the Russell Small Cap Index, have posted total returns of
14.7% and 12.4%, respectively. For the longer five year time period, U.S. stocks
remain in positive territory, led by mid cap stocks posting positive returns of 
3%, followed by small cap stocks and large cap stocks, which have returned 2.8% 
and 0.4%, respectively. 
Six of the 10 sectors within the S&P 500 posted modest positive returns for the 
month, with materials and consumer staples leading the way, posting returns of 
1.5% and 1.4%, respectively. Utilities, the only sector in negative territory 
year to date, led the declining sectors lower for the month falling 5%. Over the
longer one- year period, six of the S&P 500 sectors have produced double- digit 
total returns, led by telecommunication services, health care and consumer 
discretionary, posting returns of 20%, 19.3%, and 18.2%, respectively. 
Let's now turn our attention to the foreign equities markets. On a global basis,
foreign equity markets started the month rather slow but ended strongly as 
investors became less concerned about the fiscal challenges in the U.S. and 
abroad, and increased their holdings in riskier assets. Positive debt 
restructuring news from Spain and Greece helped ease economic concerns about the
debt burden countries, and move the markets into positive territory for the 
month. 
The Morgan Stanley Capital International Europe Australasia and Far East Index 
advanced 2.4% for the month, and extended its year to date total return to 
13.7%. Japanese stocks also posted a positive gain in November, advancing 2.4% 
in U.S. dollar terms, as the country's industrial output rose in October, up for
the first time in four months. For the month, the NIKKEI Average, the leading 
index of Japanese stocks, advanced 5.9%, its best monthly performance since 
February. 
Let's now switch our focus to the U.S. fixed income markets. In the U.S. fixed 
income markets, long- term government bond prices were mostly unchanged for the 
month, as investors kept to the sidelines in the absence of progress on 
Congressional budget negotiations. For the month, the Barclays U.S. Aggregate 
Bond Index posted a monthly return of 0.2%. Over the longer one and five- year 
time periods, bonds, as measured by the Barclays Aggregate Bond Index, have 
posted positive total returns of 5.5% and 6%, respectively. 
Municipal bonds experienced a modest increase in November as demand continued to
outpace supply. For the month, the Barclays Municipal Bond Index advanced 1.7% 
and extended its year to date returned to 8.1%. Over the longer one and five- 
year time periods, municipal bonds have posted positive returns of 10.2% and 
6.2%, respectively. 
U.S. Treasury prices moved higher in November, pushing yields lower as investors
remained concerned about the inability of lawmakers to compromise on the 
expiring tax cuts and spending measures that threaten to slow the U.S. economy. 
For the month, the yield on the benchmark 10- year Treasury note closed at 
1.62%, down from October's 1.72%, while the 30 -year Treasury bond yield ended 
the month 2.85%. 
With that we will conclude this broadcast. Thank you again for listening to the 
State Farm Market Recap. Please join us again next month for the latest market 
review, as the fiscal cliff negotiations continue to play out in Washington DC, 
will the financial markets continue their upward momentum and end the last month
of the year on a positive note? 
Securities issued by State Farm VP Management Corp. For more information, call 
1-800-447-4930. This recap has been prepared by State Farm VP Management Corp 
for informational purposes, and should not be considered a recommendation to buy
or sell any security. Any opinions discussed herein reflect our judgment as of 
the date of publication, and are subject to change.