POCKETBOOK: Week ending July 16, 2016

  • IMG_0204•Got cash? If not, get it.

I’m going to continue to remind you—okay, harp—about making sure you’ve got a stash of cash that’s readily available and easily accessible. How much do you need? Six months of living expenses. Not six weeks. But six months. If that seems like an unrealistic amount, get over it. Save it.

I could list dozens of reasons why everyone needs to do that, instead I’ll let the richies lead the way.

According to a recent UBS survey of 2,200 high net worth investors, 84 percent think the upcoming election with have an impact on their financial health. Many are choosing to keep 25% of their holdings in cash.

While most of us aren’t richies, having an emergency rainy day stash is essential. Particularly. if  you aspire one day  to be a richie.

  • Market Quick Glance

Below are the closing YTD performance numbers of four popular US indices as of Friday, July 15, 2016, according to Bloomberg. One-year performance figures are also included.

But before going there, overall it was a week of wins for stocks. That said, the big question on every talking head’s mind is if this market has more bull in it. As always, time will tell.

In the meantime, time also tells us that bull markets don’t go on forever.

-Indices:

-Dow Jones +7.84%YTD (That’s a gain of over 2% for the week)

  • 1yr Rtn +5.14%

-S&P 500 +7.045% YTD ( Also 2% higher)

  • 1yr Rtn +3.91% (This index lost ground during the week)

NASDAQ +1.19% YTD (An improvement of about 2%)

  • 1yr Rtn -2.15% (Lost ground)

Russell 2000 +6.99% YTD (About a 2% gain in one week)

  • 1yr Rtn -3.42%

-Mutual funds

Through Thursday, July 14, 2016 the average U.S.Diversified Equity Fund ended the week with an average YTD return of +4.86 %, according to Lipper. That’s a gain of 3.4% from last week’s  1.44%.

And how about those Precious Metals Equity Funds! As of Thursday’s close the average return for this group of 73 was up 120.25% YTD. Frank Holmes, CEO of U.S.Global Investors, thinks there’s still room to go.

On the other hand, Commodities  Precious Metals Funds, while up 29.46%, lost a bit of ground from their previous week’s close of up 29.52%

The average return for Sector Equity Funds was up 12.52% YTD. There are 2,295 funds included under this heading.

Latin American Funds continued to gain ground—up on average more than 8% from the previous week: Its YTD return was +31.05%.

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.

  • Our “rigged” economy

Seems as though a number of surveys show  an awful lot of Americans now believe our economy is “rigged.”

Although that’s one of Donald Trump’s many claims,  apparently the thinking isn’t simply limited to Republicans or Democrats, Hispanics, whites, blacks, etc. It is across the board out-loud thinking.

Survey answers show the bottom line reason for that  is because of the belief that our economy is set up to benefit a very few—and that’s a valid point.

But  the “rigged” word  bugs me.

According to Dictionary.com, rigged means “ to manipulate fraudulently.”

TheFreeDictionary.com writes that rigged means, “To manipulate dishonestly for personal gain: rig a prize-fight; rig stock prices.”

TheUrbanDictionary.com defines it like this: “1. The word rigged is used to describe situations where unfair advantages are given to one side of a conflict.
2. Describes the side of the a conflict that holds an unfair advantage. “

There is definitely an “unfair advantage” when it comes to  wages and the humungously broad and unnecessary wage gap that exits in America today.  And the result  of that disadvantage is that it has made it difficult—if not impossible—for millions and millions of individuals to live the life they had hoped, dreamed and planned for.

But I’m not sure our economy as “rigged” as it is governed by the greedy. And being greedy has never done anybody,  any country, or any civilization any good.

-30-

 

 

 

 

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