POCKETBOOK Week Ending Nov.24, 2018


  • Historic sense

Here’s something to think about from  Wall Street journalist and author Jonathan Clements’ weekly news blog, HumbleDollar:The View From Here:

“History suggests that, five years from now, share prices will be no lower than they are today , and 10 years from now they’ll be handsomely higher. But at times like this, history can be scant comfort.”

So true, Jonathan.

But let me add to that: When I was in the broker biz, the historic data showed way back then that any risks to investing in equities were equalized after 20 years.

I like Jonathan’s data better.

One final reminder: No one has ever gone broke taking the profits their stocks had rewarded them with.


  • Market Quick Glance


If you were looking for good news re the performance of the major indices, the one place you could look is at  1-year returns. With the exception of the Russell 2000, all three others have 1-year returns that closed the week in positive territory.

As for the Thanksgiving week historic returns….forgetabout’em. Turkeys every where on Wall Street.

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, Nov. 23, 2018.

DJIA -1.75% YTD back down in minus-land from the previous week’s return of 2.81%.

  • 1 yr Rtn 3.23% way down from the previous week 8.33%

Most recent DJIA a new ALL-TIME CLOSING HIGH was reached on Oct.3, 2018 of 26,951.81. The previous high was reached on Sept. 21, 2018 of 26,796.16.


-S&P 500 -1,54% YTD way down and in minus-land from last week’s 2.34%

  • 1 yr. Rtn 1.37% way down from last week’s 6.10%

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 0.52% YTD way down from last week’s 4.99%

  • 1yr Rtn 1.04% way down from last week’s 6.69%

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 -3.05% YTD down more from last week’s -0.52%

  • 1yr Rtn -1.85%3% down into minus-land from last week’s 2.73%

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

A Repeat from last week:

Slip sliding away…..

At the close of business on Thursday, Nov. 15, 2018, the average total return for funds that fall under the U.S. Diversified Equity Funds heading was 0.68%—- way down from the previous week’s figure of 3.33%, according to Lipper.

But, compare that to what the average year-to-date return was for World Equity Funds, down in minus-land almost 10% (-9.96% to be exact) and our home grown based equity fund returns don’t look so bad.

Most deeply hit among World Fund types were India Region Funds, -17.97%, China Region Funds, -15.48%, and Pacific Ex-Japan Funds, -14.85%.

And I remember when earlier this year and about this same time last year, talking heads were expecting world funds to way outperform our US markets. Ooops.

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.


  • Warren Buffett likes these dividend-paying stocks

Fans of this old man investor might enjoy learning that Warren Buffett likes dividend- paying stocks—particularly those with respectable dividend yields.

Last week, Investors’ Business Daily, published a piece about five stocks in Buffett’s Berkshire Hathaway’s portfolio. Even though Berkshire Hathaway is down, good guess the prices on some, any or all of these companies may be too but the good news here means their dividend yields could be even sweeter.

The five stocks are:

-Kraft Heinz Stock (KHC), dividend yield 4.8%.

-Store Capital (STOR), dividend yield 4.5%

-General Motors (GM), dividend yield 4.3%

-Teva Pharmaceutical (TEVA), dividend yield 4.3%

-Verizon (VZ), dividend yield 4%.










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