POCKETBOOK: Week ending Dec. 1, 2017

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  • •Wall Street’s money

Things are never as they appear. Especially when it comes to money, the stock market and proposed tax cuts.

Although anything can happen during the remaining trading days of 2017, if the strong momentum continues, this year could be a hugely rewarding for the 50% of folks who have money invested in the stock market.

That said, just because you’re an investor doesn’t mean you’ve enjoyed the same, or similar, kinds of return averages of those such as DJIA or S&P 500. Unless, of course, all of your holdings were in an index fund or ETF representing such. But not all investors are.

So, if you have been lucky enough to have returns of 15 to 20% or more this year, nothing wrong with taking some of those profits. That’s what they are there for.

As for the proposed tax cuts, Wall Streets seems to love the idea of them. But Main Street ought to think twice.

Why? First, while the deal looks almost done, it hasn’t been signed and sealed yet.

Second, if you happen to think any cut to corporate tax rates is going to translate into higher wages and more job opportunities for you and those you care about, you haven’t  been paying attention: Many corporations are now and have been sitting on hoards of money. Money that for the past couple of years could have been used to up the salaries of their employees. Or used for research and development, to build new plants, etc. But it basically hasn’t.

In other words, giving corporations tax breaks doesn’t come with any guarantees of how that fresh new cash will be used. Stock buy-backs and a boost to a company’s dividiends will probably happen way before the average Jane and Joe see their annual incomes rise by any substantial around.

  • Market Quick Glance

Up, up and away in a lot of investors’ beautiful money balloons.

Momentum is clearly still on the side of rising equity prices. So as this trend upward continues, Wall Street wisdom says don’t fight the trend.

Below are the weekly and 1-year index performance results for four major indices— including the dates each reached new highs—according to CNBC.com based on prices at the close of business on Friday, December 1, 2017.

DJIA +22.61% YTD way up from last week’s 19.20%.

  • 1 yr Rtn +26.26% up from last week’s 23.45%

And yet another new high for the DJIA was reached. This time it was on Thursday, Nov. 30, 2017 of 24,327.82. The previous high of 23,617.8 was reached on November 21, 2017.On March 1, the Dow stood at 21,169.11.

-S&P 500 +18.02% YTD up from last week’s 16.24%.

  • 1yr Rtn +20.59% up from last week’s +18.04%

The S&P 500 reached another new high on November 30, 2017 of 2,657.74. Its previous high was reached on November 24, 2017 of 2,604.21. On March 1, 2017, that index stood at 2,400.98.

-NASDAQ +27.20% YTD down a bit from last week’s +27.98%.

  • 1yr Rtn +30.40% up from last week’s 28.04%

The Nasdaq reached a new all-time high of 6,914.19 oon Nov. 28, 2017. The previous high of 6,890.02 was reached on November 24, 2017. On April 5, 2017 the index closed at 5,936.39.

-Russell 2000 +13.26%YTD up from last week’s +11.94%

1yr Rtn +16.99% way from last week’s +13.19%

The Russell 2000 reached a new all-time high on November 30, 2017 of 1,551.69. Its previous high of 1,524.18 was reached on November 22, 2017. On March 1, 2017 this index stood at 1,414,82.

-Mutual funds

As the stock market keeps moving upward, that same is true for equity fund average returns.

The year-to-date average cumulative total reinvested return for equity funds that fall under the broad U.S. Diversified Equity Funds heading, was +17.37% at the close of business on Thursday, Nov. 30, 2017, according to Lipper. That’s up from the previous week’s return of +15.55%.

Best and worst year-to-date average returns?

  • U.S Diversified Equity Funds, average 17.37%:

-Best: Equity Leverage Funds, +37.80.

-Worst:Alternative Equity Market Neutral Funds, -0.23%


  • Sector Equity Funds, average 10.77%:

-Best: Global Science/Technolgy Funds 44.90%

-Worst: Energy MLP Funds, -10.47%


  • World Equity Funds, average 26.10%:

-Best: China Region Funds, +42.84%

-Worst: Global Equity Income Funds, +15.75%

Visit www.allaboutfunds.com for more information about 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.


  • From over there to over here

Looks as though our markets appeal to everybody.

The Wall Street Journal recently reported that $66.4 billion has been plowed into our U.S. markets through September of this year. That’s the most since 2012.

Plenty of talking heads forecast that 2018 will be another great year. Clearly many in the  the investment world seem to be expecting that.

We shall see.




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