The second quarter began as the first quarter ended--with stocks soaring--but the torrid run appears to have stalled since late May, and the markets have leveled off for the rest of the quarter through June 29. Altogether, the Morningstar U.S. Market Index added 15% for the trailing 13 weeks and is up 5% for the year.

Smaller was distinctively better in the second quarter, as the Morningstar Small Cap Indexes added between 21% and 22% for the trailing 13 weeks through June 29. The mid-cap indexes added between 16% and 20% for the quarter, while the large-cap indexes were the laggards with gains in the 9%-15% range.

Bond investors sold off Treasuries, elevating interest rates on the 10-year Treasury, perhaps in anticipation of inflation. The 10-year now yields around 3.5%, up from around 3% at the beginning of March. Commodities' performance also revealed investor fears of inflation. The Morningstar Long-Only Commodity Index rose 14.8% for the trailing 13 weeks.

Overall, Morningstar's entire coverage universe is about 8% undervalued as of June 29, meaning the market isn't a distinct bargain. However, within that universe, we think that wide-moat stocks are around 22% undervalued. Fifty-eight stocks currently garner Morningstar's coveted wide-moat rating and trade in 5-star territory. Click to read more.

To get a complete analysis of the stocks and funds in your portfolio, click the Portfolio link at the top of this page. Also, check out our Analyst Reports on 2,000 stocks and 2,000 funds.