POCKETBOOK: Week ending July 2, 2016

Happy 4th of July from me and my dog Grace.

How about that Brexit bang!

One week ago investor talking heads were all dazed and confused  worried about what the UK’s decision to leave the EU would mean to markets around the globe.

Turns out, as far as the super short-term is concerned, one week after their vote Bloomberg’s data showed that all of the markets in North and South America–excluding those in Columbia and Venezuela– ended the week on a positive note. The countries included on the week’s plus-side of the ledger include all those in US, Mexico, Canada, Brazil, Argentina and Chile.

Of course the jury is still out regarding the long-term  as what the Brits voted to do is a very very big deal. The reality of their actions will take years before all  ramifications from it surface.

  • Market Quick Glance

Below are the YTD performances of various US indices as of the close of business on  Friday, July 1, 2016, according to Bloomberg. One-year performance figures are also included.


-Dow Jones +4.45% YTD (That’s a gain of 3.2% from the previous week’s close.)

  • 1yr Rtn +3.93%

-S&P 500 +4.06% YTD (Up nearly 4% from last Friday’s close.)

  • 1yr Rtn +3.49%

-NASDAQ -2.20% YTD (Last week’s close was down over 5%)

  • 1yr Rtn -1.62%

-Russell 2000 +2.64 YTD (About a 2% gain in one week)

       •1yr Rtn -5.92% (A big improvement considering last week the 1-year return was -10.6%.)

-Mutual funds

A double-header of mutual fund returns to report as Lipper’s performance numbers on June 30 reflect year-to-date figures, and, given that Thursday was the last day of June, the following total returns also represent how funds have performed for the first half of the year.

So through Thursday, June 30, 2016 the average U.S.Diversified Equity Fund was up 1.50 percent, according to Lipper.

If mama had only told you to buy gold at the first of the year, and you listened and purchased a mutual fund investing in precious metals, you’d be loving her as the average Precious Metals Equity Fund has moved up nearly 100% so far this year (99.23% to be exact.)

Then again, if you’d been holding a fund under that heading for the last five years, beginning in  2011, you wouldn’t be smiling as the average Precious Metals Equity Fund is down 13 percent over that 5-year time period.

And therein lies  the trouble with investing in precious metals: They are a hugely volatile asset class. Be mindful of that. Timing is key. Bragging rights limited. So are holding periods.

Visit www.allaboutfunds.com for weekly updates to see how various equity and fixed-income funds have rewarded investors over the short-and long-term, based upon Lipper data. Short-term meaning weekly and monthly performance returns; longer-term includes quarterly, year-to-date, 1-yr, 2-yr, 3-yr and 5-yr returns.

Lipper’s weekly performance figures for stock and fixed-income funds are at www.allaboutfunds.com in the left column on the home page.

  • Happy Independence Day!

There’s nothing quite like America. If you don’t believe me, travel the world and see for yourself.

Hope your 4th brings with it a celebration of oh-so many things.





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