Monthly Archives: April 2019

POCKETBOOK Week Ending April 26, 2019

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  • Wanna succeed at whatever? Here’s how.

When you boil things down, it doesn’t take that much effort to set yourself on the road to success. Really.

No matter what your chosen field of success happens to be focused on, such as building wealth, helping others or succeeding in business, two well-known oldsters, Warren Buffett and Charlie Munger—you know, the guys behind the success of Berkshire Hathaway— understand firsthand what it takes to help insure you’re on the right path to success: Keep learning every day of your life.

In a recent CNBC.com story comes this from Munger who says that Buffett is “learning machine: “If you take Warren Buffett and watched him with a time clock, I would say half of all the time he spends is sitting on his ass and reading,” Munger said in his 2007 commencement speech at the University of Southern California.

“Without lifelong learning, you’re not going to do very well. You’re not going to get very far in life based on what you already know,” says Munger.

So simple. So true. So easy for each of us with aspirations of any kind to do.

 

  • Market Quick Glance

All hail America’s recent positive economic data and an annualized GDP growth rate of 3.2% that exceeded most everyone’s expectations. Without it, they would have been no new closing highs reached in both the S&P 500 and the NASDAQ last week.

Below are the weekly and 1-year index performance results for the three major indices—DJIA, S&P 500 and NASDAQ — including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, April 26, 2019.

DJIA 13.79% YTD down a hair from the previous week’s 13.86%.

  • 1 yr. Rtn 9.13% up from the previous week 7.68%

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   17.27% YTD up a heap from the previous week’s 15.88%

  • 1 yr. Rtn 10.23% up a big bunch from the previous week’s 7.87%.

*****The S&P 500 reached a BRAND NEW CLOSING ALL-TIME HIGH on Friday April 26, 2019 of 2,939.88. The previous all-time closing high was on Sept. 21, 2018 of 2,940.91. Prior to that, the high of 2,916.50 was reached on August 29, 2018.

 

-NASDAQ 22.77% YTD up a chunk from last week’s 20.54%.

  • 1yr Rtn 14.44% way up from last week’s 10.50%.

*********Nasdaq reached a BRAND NEW All-Time CLOSING HIGH on Friday, April 26, 2019 of 8,146.40. Prior to that, the previous high of 8,1333.30 was reached on August 30, 2018. Before that, on August 24, 2018 reached it’s then all-time high of 7,949.71.

 

-Mutual funds

Still smoken.

Another round up increases in the year-to-date returns for equity funds as, at the close of business on Thursday, April 25, 2019, the year-to-date cumulative total reinvested performance of U.S. Diversified Equity Fund was 16.54%, according to Lipper. That’s up from the previous week’s close of 15.86%.

That broad U.S. Diversified Equity Fund heading was hard to top when compared with the y-t-d return of Sector Equity Funds with their average return of 14.40%; World Equity Funds’ return of 13.61%; and Mixed Asset Funds’ return of 10.07%.

Clearly equity funds have been the only game in town as the average y-t-d return of Domestic Long-Term Fixed Income Funds was 4.01%. And, World Income Funds’ 3.87% averge return.

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.

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POCKETBOOK Week Ending April 19, 2019

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  • It’s Earth Day

You don’t have to be a tree hugger to acknowledge and respect this incredible planet that we all inhabit. And, you don’t have to be a Rhode Scholar to know that each of us human beings have a roll to play in the management and maintanence of this grand globe we call home.

Make sure to make time today to go outside, take the phone away from your ears, the earbuds out and look around. Then, wherever you’re standing be still for a minute and notice that you’ve got air to breathe, look up at the sky above, feel the earth below and be very much aware of the fact that in that moment of time, all is well.

If that doesn’t move you to celebrate our magnificent planet Earth, see a shrink.

 

  • Earnings Season

Hey everybody, it’s earnings season. Once again. And this week will be a hugely busy one as 140 of the S&P500 companies are scheduled to report their earnings—or lack of them—to the public and their shareholders.

If you’re a newbee investor, here’s a question: How often does earnings season roll around: A) Once a year; B) 2 times a year; C) 4 times a year; or D) 6 times a year; or E) every other year?

The correct answer is C, 4 times a year. Or quarterly. Each season typically begins a week or two after the last month of each quarter.

How a company’s earnings impacts your holdings can provide some insight into how well your investment pick is doing. Then again, unless you’re an active day trader, a quarterly earnings report might not amount to much of a hill of beans if you’re a long term investor in a well financed, well managed and well established company.

But ain’t that always the case.

 

  • Market Quick Glance

The stock market was closed on Friday, but Thursday’s closing numbers continued to reflect a performance many investors are pleased with as it continues to be a double-digit year-to-date return world for the three indices followed here.

Below are the weekly and 1-year index performance results for the three major indices—DJIA, S&P 500 and NASDAQ — including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, April 18, 2019.

DJIA 13.86% YTD up from the previous week’s 13.22%.

  • 1 yr. Rtn 7.68% down from the previous week 7.88%

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   15.88% YTD up from the previous week’s 15.39%

  • 1 yr. Rtn 7.87% down from the previous week’s 8.633%.

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 20.54% YTD up a bit from last week’s 20.33%%

  • 1yr Rtn 10.50% down and worth noticing from last week’s 11.82%.

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.

 

-Mutual funds

At the close of business on Thursday, April 18, 2019, the year-to-date cumulative total reinvested performance of U.S. Diversified Equity Fund was 15.86%, according to Lipper. That’s up a hair from the previous week’s close of 15.73%.

Of the 20 different types of funds that fall under that broad U.S. Diversified Equitiy Fund heading, only two types had year-to-date performance figures under 10%. They were Specialaity Diversified Equtdy Funds, (there are 31 of them) had an average return of 7.96%. And, Alternative Long/Short Equity Funds of which there are 350 funds sporting an average year-to-date return of 7.36%.

And continuing its under water performance given current market conditions, the average total return of the 165 different funds that make up the Dedicated Short Bias Funds category was -21.26%.

One more kinda stinker—Alternative Equity Maret Neutral Funds (there are 96 funds in this group) are underwater too with an average return of 1.71%.

 

 

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.

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POCKETBOOK Week Ending April 19, 2019

  • pexels-photo-256807

  • It’s Earth Day

You don’t have to be a tree hugger to acknowledge and respect this incredible planet that we all inhabit. And, you don’t have to be a Rhode Scholar to know that each of us human beings have a roll to play in the management and maintanence of this grand globe we call home.

Knowing that, make sure to take some time today to go outside, take the phone away from your ears, the earbuds out and look around. Then, wherever you’re standing, be still for a minute and tune in to notice that you’ve got air to breathe, look up at the sky above, feel the earth below and be very much aware of the fact that in that moment of your personal time, all is well.

If that doesn’t move you to celebrate our magnificent planet Earth, see a shrink.

 

  • Earnings Season

Hey everybody, it’s earnings season. Once again. And this week will be a hugely busy one as 140 of the S&P500 companies are scheduled to report their earnings—or lack of them—to the public and their shareholders.

If you’re a newbee investor, here’s a question: How often does earnings season roll around: A) Once a year; B) 2 times a year; C) 4 times a year; or D) 6 times a year; or E) every other year?

The correct answer is C, 4 times a year. Or quarterly. Each season typically begins a week or two after the last month of each quarter.

How a company’s earnings impacts your holdings can provide some insight into how well your investment pick is doing. Then again, unless you’re an active day trader, a quarterly earnings report might not amount to much of a hill of beans if you’re a long term investor in a well financed, well-managed and well established company.

But ain’t that always the case.

 

  • Market Quick Glance

The stock market was closed on Friday, but Thursday’s closing numbers continued to reflect a performance many investors are pleased with as it’s still a double-digit year-to-date return world for the three indices followed here.

Below are the weekly and 1-year index performance results for the three major indices—DJIA, S&P 500 and NASDAQ — including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, April 18, 2019.

DJIA 13.86% YTD up from the previous week’s 13.22%.

  • 1 yr. Rtn 7.68% down from the previous week 7.88%

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   15.88% YTD up from the previous week’s 15.39%

  • 1 yr. Rtn 7.87% down from the previous week’s 8.633%.

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 20.54% YTD up a bit from last week’s 20.33%%

  • 1yr Rtn 10.50% down and worth noticing from last week’s 11.82%.

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.

 

-Mutual funds

At the close of business on Thursday, April 18, 2019, the year-to-date cumulative total reinvested performance of U.S. Diversified Equity Fund was 15.86%, according to Lipper. That’s up a hair from the previous week’s close of 15.73%.

Of the 20 different types of funds that fall under that broad U.S. Diversified Equitiy Fund heading, only two types had year-to-date performance figures under 10%. They were Specialaity Diversified Equtdy Funds, (there are 31 of them) had an average return of 7.96%. And, Alternative Long/Short Equity Funds of which there are 350 funds sporting an average year-to-date return of 7.36%.

Continuing its under water performance given current market conditions, the average total return of the 165 different funds that make up the Dedicated Short Bias Funds category was -21.26%.

One more kinda stinker—Alternative Equity Market Neutral Funds (there are 96 funds in this group) are underwater too with an average return of 1.71%.

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.

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POCKETBOOK Week Ending April 12, 2019

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(From Bespoke….I did not include the “Non-Dogs Performance” chart because I was just Dow Dogs hunting.)

  • The good Dogs of the Dow

Good news for fans of the Dogs of the Down investment strategy: Their total return is up 13.56% this year. Let’s hear a big “Good girl!” for that.

According to Bespoke, the two tech stocks that have performed the best are IBM, up over 28%, and Cisco, up over 32%. Matching that set, two of the 10 dogs were down as well: Pfizer, down -3.28% and Coca-Cola, off a hair at -0.18%.

 

  • Sage advice

From author and wise personal writerJonathan Clements’ recent Humble Dollar newsletter comes this: “But even with the risk of a large short-term market drop, I think stocks remain the best bet for long-term investors. U.S. shares may be richly priced. But those who diversify globally will also have cheaper markets in their portfolio. And let’s face it: With 10-year Treasury notes yielding less than 2.6%, is there any alternative to biting the bullet and buying stocks?”

 

  • Market Quick Glance

The performance gods appear to continue smiling on Wall Street as the three indices followed here were up double-digits when last week came to a close.

Below are the weekly and 1-year index performance results for the three major indices—DJIA, S&P 500 and NASDAQ — including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, April 12, 2019.

DJIA 13.22% YTD off a hair from the previous week’s 13.28%.

  • 1 yr. Rtn 7.88% up a hair from the previous week 7.83%

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   15.39% YTD up again from the previous week’s 13.07%

  • 1 yr. Rtn 8.63% up from the previous week’s 7.33%.

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 20.33% YTD up from last week’s 19.64%%

  • 1yr Rtn 11.82% down from last week’s 12.18%

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.

 

-Mutual funds

At the close of business on Thursday, April 11, 2017, the year-to-date cumulative total reinvested performance of U.S. Diversified Equity Fund was 15.73%, according to Lipper. That’s up from the previous week’s close of 15.05%.

Those Equity Leverage Funds are still tearing it up as, on average, they have returned 30.99%. In fact, of all the dozens of types of mutual funds that Lipper tracks weekly, this group has rewarded shareholders the most so far this year.

Commodities Energy Funds also continue their upward performance with an average return of 24.63%.

And looking around the world China Region Funds have returned about the same at 23.15% while the average World Equity Funds return stood at 13.57% last Thursday.

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.

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POCKETBOOK Week Ending April 5, 2019

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  • Oh so true

I’m forever looking for the simplest, the best and the most accurate way to help investors understand what’s going on in the world of making money on Wall Street.

To that end, CNBCs Josh Brown wrote a piece last week that’s worth reading titled, “Josh Brown: How I explain the stock market vs the economy”.

In a nutshell he writes: “One of the hardest things to do as an investsor is to entertain two opposing thought in our minds at once, and find a way to keep them despite the cognitive dissonance this can produce…..

“One of the most ironic aspects of investing is that the greatest gains lie ahead at time when things are bad, but not quite as bad as everyone suspects, and slowly, almost imperceptibly getting better. This is the moment when assets are selling at discounted values and the opportunities are laying at our feet, there for the taking…

“Conversely, the worst time to invest is once everyone agrees that the environment is teriffic and that the gains will continue as far as the eye can see. It is at this moment we find ourselves paying up for assets and competing with lots of other buyers…

“But most of the time, neither the economy nor the stock market is as good as it could get, or as bad as it could get.”

That pretty much says it all.

 

  • Market Quick Glance

Holy moly….another up week for all three indices followed here with the biggest winner the NASDAQ index: It was up nearly 20% year-to-date as of Friday, April 5. That’s incredible and for some investors enough to sell their y-t-d short-term position on that index, go home and not play for the rest of the year. Then again, most folks aren’t day, week, or short-term investors.

Below are the weekly and 1-year index performance results for the three major indices—DJIA, S&P 500 and NASDAQ — including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, April 5, 2019.

DJIA 13.28% YTD up again from the previous week’s 11.15%.

  • 1 yr. Rtn 7.83% up a bit from the previous week 7.57%

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   15.39% YTD up again from the previous week’s 13.07%

  • 1 yr. Rtn 8.63% up from the previous week’s 7.33%.

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 19.64% YTD up lots from last week’s 16.49%%

  • 1yr Rtn 12.18% up plenty from last week’s 9.43%

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.

 

-Mutual funds

And what a quarter it was with the total return of the average U.S. Diversified Equity Fund ending the first quarter of 2019 at 13.27%. But wait, there’s more as time has passed.

And one week later the trend continued. At the close of business on Thursday, April 4, 2017, the year-to-date cumulative total reinvested performance of U.S. Diversified Equity Fund was 15.05%, according to Lipper.

The great big fat total return y-t-d winner under this huge umbrella category was Equity Leverage Funds, up on average over 30%. If I were a shareholder in an Equity Leverage Fund with a y-t-d return over 30%, I’d be tempted to take some money off the table. After all, we know the downside–performance of the high flyers could fall. Oh but then again,  how high can returns go after moving up 30%? As always, nobody knows.

Mid-Cap Growth Funds continue to outperform the overall average—they were up 20.68% with Small-Cap Growth Funds nipping at their heels at 19.45%.

Under the Sector Equity Funds heading, it’s a science and tech performance world. Of the 70 Global Science/Technology Funds that Lipper tracks, the average was up 23.32%. Behind it the performance of the 185 Science & Technology Funds, the average y-t-d return was 22.02%.

Commodities Energy Funds, there are 21 of the, were up 22.01% while Commodities Agriculture Funds, 26 around, were off at -1.31%.

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.

 

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POCKETBOOK Week Ending March 29, 2019

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  • What a quarter

When 2018 came to a close, generally speaking, there wasn’t much enthusiasm for robust returns coming round by the end of  Q1 in 2019. But that was months ago thinking. Today, the proof in the pudding has been revealed and 2019’s first quarter was a whopper with all indices scoring big.

According to a recent piece at CNBC.com by Bob Pisani, the quarter’s gains were shared across the board with technology stocks leading the most, up 17 percent, oil rallying from $43 at year’s end to almost $60 at the end of March 2019, industrial stocks up 15 percent with 90 percent of  S&Ps stocks  up.

And that’s all happened with the worries about what an inverted yield curve could mean to equities going forward and investor thinking.

From where I sit, the only investor thinking that matters is how you—the individual investor—are thinking. Did you rethink your personal and retirement portfolio after seeing your 2018 returns? If you did, are you glad you did, sorry you fiddled with things and/or wished you had let things go on as they were.

Whatever. The only right answer with respect to assessing quarterly–or annual– market returns is how your investments are holding up and serving you.

As in life, everyone’s portfolio holdings are as different as is the size of each of our noses, ears, waistlines and our income, savings and retirement accounts.

May each grow respectfully over time.

 

  • Dividend paying stock ideas from Louie

 I’ve always been a big fan of dividend paying stocks. Once upon a time, and when I first became a stockbroker in the early 1980’s, word was stocks paying dividends were considered a good conservative play for widows and orphans. Forget the images that thought conjures up, dividend paying stocks have pretty much always been a good play for most types of investors—the married, widowed, young, old, single, divorced, the rich and underfunded.

In Louis Navellier’s Marketmail newsletter dated March 26, 2019, he suggested investors research and consider these big blue-chip dividend paying stock ideas:

  • PepsiCo Inc. (PEP). It pays a dividend yield of 3.07% and owns brands like Diet Pepsi, Aquafina, Doritos, Lays, Lipton, Gatorade, Fritos, and Mountain Dew.
  • Kimberley Clark (KMB) pays 3.38%
  • Dominion Energy (D) paying 4.86%
  • PPL Corp. (PPL) paying 5.13%
  • Verizon (VZ) paying 4.06%

 

  • Market Quick Glance

And what a week it was with all three of the indices bringing home the bacon deliciously in their year-to-date returns.

Below are the weekly and 1-year index performance results for the three major indices—DJIA, S&P 500 and NASDAQ — including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, March 29, 2019.

DJIA 11.15% YTD up a jump from the previous week’s 9.32%.

  • 1 yr. Rtn 7.57% up from the previous week 6.45%

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   13.07% YTD a jump up from the previous week’s 11.72%

  • 1 yr. Rtn 7.33% up from the previous week’s 5.94%.

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 16.49% YTD up from last week’s 15.18%%

  • 1yr Rtn 9.43% a jump up from last week’s 6.64%

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.

 

-Mutual funds

Repeat from previous week ending March 21, 2019:

The year-to-date cumulative total reinvested performance of U.S. Diversified Equity Fund was 14.26% at the close of business on Thursday, March 21, 2019, according to Lipper.

Among the 408 Mid-Cap Growth Funds that fall under that huge Diversified category, the average year-to-date return was an impressive 20.17%. Small-Cap Growth Funds, however, performed better: 20.37% for the 592 funds that Lipper tracks in that group.

And then there are Equity Leverage Funds—-the average YTD performance of the 228 funds under that heading was 28.36%.

On the other hand, Dedicated Short Bias Funds’ average YTD return was -20.61%.

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.

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