POCKETBOOK Week Ending Sept. 22, 2018

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  • 50/50 Kinda

There are so many reports regarding the number of people who actually are investors in one form or another whether they be individual investors who have portfolios made up of stocks and/or bonds or both; folks who have opened then funded their 401k, IRAs or ROTH IRAs; owners of various kinds of annuities; or whatever’s can be confusing.

To keep things as simple as possible, let’s call it about a  50/50 divide: 50% of people are invested in the markets and 50% aren’t.

That’s not a good split no matter how you count it: If half of all of us don’t have any investments that’s for sure going to be one huge problem come retirement age—or old age in general. This financially challenged issue may seem as though it’s an individual one to those rolling in dough or who have plump portfolios, but in reality it’s going to create lot of problems individually and have a major impact on our United States coffers.

The picture isn’t a pretty one because a 50/50 split might sound like a fair split, in the world of money reality, it isn’t.

According to the Federal Reserve re 2016 numbers, America’s top10% of households are about 120 times wealthier than the lower middle class. And, the top 10% had an average net worth of $5.34 million; the lower middle class had $44,700.  That  huges spread in household wealth is in direct correlation to those who are  investors vs  those who are not.

I’m hoping your portfolios are plump enough to help any family and/or friends who may need financial assistance now and in the future.


  • Market Quick Glance

Two new record year-to-date all-time highs were reached by both the DJIA and S&P 500 indices last week. That’s a big yippee for many investors.

Below are the weekly and 1-year index performance results for the four major indices—DJIA, S&P 500, NASDAQ and the Russell 2000— including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, Sept. 21, 2018.

DJIA 8.19% YTD up substantially from previous week’s return of 5.81%.

  • 1 yr Rtn 19.61% a jump up from the previous week 17.90 %

Most recent DJIA a new ALL-TIME CLOSING HIGH was reached on Sept. 21, 2018 of 26,796.16. The previous high was reached on January 26, 2018 of 26,616.71.


-S&P 500 9.58% YTD a jump up from last week’s 8.65%

  • 1 yr. Rtn 17.08% up from last week’s 16.40%

The S&P 500 reached a BRAND NEW CLOSING ALL-TIME HIGH on Sept. 21, 2018 of 2,940.91. The previous closing high was reached on August 29, 2018 of 2,916.50.


-NASDAQ 15.70% YTD down from last week’s 16.03%

  • 1yr Rtn 24.36% down a tad from last week’s 24.59%

Nasdaq reached a BRAND NEW 52-week CLOSING HIGH on August 30, 2018 of 8,1333.30. The previous high was reached on August 24, 2018 of 7,949.71.


-Russell 2000 11.51% YTD down from last week’s 12.13%

  • 1yr Rtn 18.57% down from last week’s 20.82%

The Russell 2000 reached a BRAND NEW 52-week ALL-TIME HIGH on August 31, 2018 of 1,742.09. The previous high was reached on August 24, 2018 of 1,726.97.


-Mutual funds

Quite like the average equity fund’s y-t-d performance has moved up a bit. But, no data to confirm it and/or by how much. New Lipper figures will be posted as soon as they are received.

Until then below is last week’s commentary:

Moving up a bit.

At the close of business on Thursday, Sept. 13,2018, the average total return for funds that fall under the U.S. Diversified Equity Funds heading was 8.96%. 8.26%. That’s up a bit from the previous week’s 8.26%, according to Lipper.

It continues to be a Small-Cap Growth Funds world, fund here now up on average 22%.

Comparing that group’s return with 25 of the largest individual funds around, (largest in terms of assets) and it’s the Invesco QQQ Trust 1 with the best y-t-d performance at 18.92%

Fifteen of the 25 funds in that listing have returns over 10%. Impressive.

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.


  • Mortgage Rates

They’re creeping up.

Anyone keeping an eye on the Treasury’s long bond—that would be the one that matures in 30 years—has seen its yield move up. And as it moves up so do things like the interest earned on things like money market funds or CDs. And, more importantly, in the amount of money needed to pay any variable rate or fixed-income mortgage.

More to come.






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