POCKETBOOK Week Ending March 8, 2019

• One old, fat ETF turns 20

On March 10, 1999, Invesco introduced their hugely popular and successful QQQ ETF. Now, 20 years later, the QQQ is the sixth largest U.S. listed ETF, has $66.4 billion in assets under management and was the second most traded ETF in 2018.

What’s  it’s appeal? The QQQ tries to reflect the performance of the Nasdaq-100 Index, and we all know how hot Nasdaq stocks can be.

According to INVESCO, “A lot of investors think it’s just technology, and actually, today, it’s about 40% technology and 60% other sectors, so we really look at it as large-cap growth and has a lot of the biggest innovators that we know in the economy today,” John Frank, QQQ Strategist for Invesco, said at the Inside ETFs Conference.

Since it’s original launch QQQ had an original weighting of 78% toward technology—a reflection of the dot.com world that was swinging in high form way back then.

Now the portfolio looks like this: 43.0% information technology, 23.3% communication services, 16.1% consumer discretionary, 8.5% health care, 6.0% consumer staples, 2.5% industrials, 0.4% utilities and 0.3% financials. Additionally its components include large-cap growth companies (60.8%), large-cap blended names (23.6% and large-cap value stocks (13.0%).

Top components include Microsoft (NasdaqGS: MSFT) 9.9%, Apple (NasdaqGS: AAPL) 9.6%, Amazon.com (NasdaqGS: AMZN) 9.3% and Facebook (NasdaqGS: FB) 4.8%, among others.

As for performance, since inception the QQQs annual return is around 7.2%; over the last 15 years it was 13.7%; and during the past 10 years has returned almost 21.4%.

Kinda sorta impressive, isn’t it.

 

• Believe what you want, but….

According to a recent Reuters piece, based on data from the Federal Reserve,
“U.S. household wealth fell by a record $3.8 trillion, or 3.5 percent, at the end of 2018..”

In other words, based on percentages, the 5.9% fall represented the biggest quarterly percentage stumble in household finances since 2008.

Oh my.

 

• Market Quick Glance

Not such a hot performance week for the three major indices followed here. In fact, year-to-date returns on each lost ground. Oh, dear.

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 8, 2019.

–DJIA 9.10% YTD down from the previous week’s 11.57%.

• 1 yr. Rtn 2.23% down from the previous week 5.76%

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   11.84% YTD down from the previous week’s 11.84

• 1 yr. Rtn 0.15% down from the previous week’s 4.71%.

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 11.65% YTD down from last week’s 14.47%

• 1yr Rtn -0.27% way down from last week’s 5.78%

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

As one might expect, at the close of business on Thursday, March 7, 2019, the year-to-date total return for the average stock fund under the broad U.S. Diversified Equity Fund heading was10.86%. That’s down a sum from last week’s figure of 12.98%, according to Lipper.

Of the 25 Largest Mutual Funds that Lipper tracks, iShares Russ 2000 ETF had the best y-t-d performance of 13.19%.

Behind it were the iShares: Core S&P Md-Cp at 12.46%. And behind it the Invesco QQQ Trust 1 at 11.22%.

The three worst y-t-d- performing funds were DoubleLine at 0.90%: the PIMCO TotRtnl at 1.34%; and iShares: Core US Agg Bd at 1.44%

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.

 

-30-

 

 

 

 

 

 

 

 

Advertisement

POCKETBOOK: Week ending July 21, 2018

We all know that President Trump sees things differently than most. The same is true when it comes to his math.

• Trump Math

 By now we’ve all learned that President Trump isn’t well-versed in a number of things including American history, manners, telling the truth and yes, even math.

Last week he said that the stock market has gone up 40% since he was elected president. Better not take that to the bank never mind believe it.

According to CNBC.com, the S&P 500 is up 31% since Trump was elected president on Nov. 8, 2016. That’s a far distance from 40%. Additionally, the lion’s share of those gains were made last year in 2017. So far this year, the S&P has gained around 4%.

Math matters to every investor sophisticated or not,  Democrat, Republican, Independent or the Un-politically interested.

Bottom line: Betting on Trump’s math could be detrimental to one’s portfolio expectations.

 

• Market Quick Glance

A few ups and a few downs but what counts the most is how your portfolio is doing.

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, July 20, 2018.

–DJIA 1.37% YTD up a tiny bit previous week’s return of 1.21%.

• 1 yr Rtn 15.95% down from the previous week’s 16.08 %

Most recent DJIA all-time high was reached on January 26, 2018 of 26,616.71. The previous high was reached January 18, 2018 was 26,153.42.

 

-S&P 500 4.80% YTD up a hair from last week’s 4.78%

• 1 yr Rtn 13.28% down from last week’s 14.44%

The S&P 500 reached its most recent all-time high on January 26, 2018 of 2,872.87. The previous high was reached on January 19, 2018 of 2810.33.

 

-NASDAQ 13.28% YTD down a bit from last week’s 13.36%

• 1yr Rtn 22.38% down from last week’s 24.73%

Nasdaq reached a new 52-week high on July 17, 2018 of 7,867.15. The previous high was reached on July 13, 2018 of 7,843.53.

 

-Russell 2000 10.50% YTD up from last week’s 9.87%

• 1yr Rtn 17.64% down from last week’s 18.34%

The Russell 2000 reached a new 52-week high on July 10, 2018 of 1,708.56. The previous high was reached on June 20, 2018 of 1,708.1.

 

-Mutual funds

A y-t-d total return for the average equity fund has handsomely outperformed the year-to-date returns of the DJIA and S&P500 by a couple of percentage points.

And, at the close of business on Thursday, July 19, 2018, the total return performance of the funds under the U.S. Diversified Equity Funds heading had an average return was 6.49%, according to Lipper.

To compare, th DJIA on Friday had a y-t-d return of about 1.4% and the S&P 500, 4.8%.

Nonetheless, it’s first still a small cap world as the average cumulative total return for Small-Cap Growth Funds continue to be the out performers averaging 17.41% returns, followed by Mid-Cap Growth funds, 12.34% then Multi-Cap Growth, 12.32%.

The only other category of funds coming close to the Small-Cap performance was Science & Tech Funds with a y-t-d average return of 15.57%.

On the other hand, the average y-t-d Commodities Base Metals Funds performance stinks— it was -17.85%.

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.

 

• Golden Cross

The price of gold can’t seem to get out of its own way.

Gold analysts are now saying that the price of this precious metal has entered into a death cross. My, that’s ugly. And, that  they don’t see anything but more bad news ahead.

A death cross is a bearish technical signal that happens when the 50-day moving average crosses below the 200-day average. And that’s not happy news for those betting on the price of gold moving out of the woods anytime soon.

On the other hand, gold could be a buy for bottom buyers and those who consider themselves long-term optimistic  investors.

-30-

 

POCKETBOOK: Week ending Oct. 13, 2017

•The Donald’s Pinocchio nose

If our current president had a Pinocchio nose, well, I can hardly imagine how extended it would by now be given his record of telling the truth while President of the United States. Day-to-day tweets and truth-telling during his time in office haven’t gone hand in hand.

Take for instance, this example from Trump tweet dated Oct. 16, 2017: “Since Election Day on November 8, the Stock Market is up more than 25%, unemployment is at a 17 year low & companies are coming back to U.S.”

Looking only at stocks, aaccording to MarketWatch.com, if one defines “the Stock Market” as the DJIA, the president is accurate. But if the market he’s speaking of is the S&P 500, he’s off. It hasn’t gained that much. FactSet reports that index up 22%.

That little half truth will extend his Pinocchio nose a little bit more.

But let’s go back to that DJIA. Some stocks in it have performed incredibly well since his inauguration. But not all. The top three total return performers from Nov.8 through Oct.13 were Boeing(BA) up 88%, Caterpillar (CAT) up 58% and McDonald’s (MCD) up 43%, according to FactSet.

The three worst total return performers over that same time period  were: General Electric, (GE) down 19%, International Business Machines (IBM) down 2 % and Exxon Mobil (EX) down 1 %.

Forgetting stocks, a bigger not-telling-the-truth story from Trump is his one about tax cuts. Lots of fudging in what’s being said there including the fact that salaries will increase by thousands of dollars each year for worker bees. Hog wash.

And so is the need for tax cuts in the first place. One simple reality: Think for a moment of all the expenses and costs that are being racked up because of the hurricanes, storms, fires, etc. that have happened over the past few weeks. Where is all of the billions of dollars going to come from to cover those costs? Not tax cuts.

The Republicans say that we need tax reform for one reason and one reason only: For the Republican Party to be able to say they have accomplished something.

Your average American needs tax reform about as much as they need to see the president’s  Pinocchio nose grow another inch.

 

• Market Quick Glance

Truly remarkable. As of last Wednesday, the DJIA had enjoyed 53 record high closes this year, according to CNBC. The S&P 500, 62 times. And then Friday rolled around and both indices closer higher again.

Is there no ending to this bull run? Yes and no. Yes, bulls always trip and markets always turn. No, no precise way of knowing when or what triggers the fall.

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, October 20, 2017.

-DJIA +18.04% YTD up significantly from last week’s 15.73%.

• 1 yr Rtn +28.44% up from last week’s 26.37%

And another new all-time high for the DJIA. This one of 23,328.84 was reached on October 20, 2017.

The previous high of 22,905.33 was reached on October 13, 2017.

On March 1, the Dow stood at 21,169.11.

 

-S&P 500 +15.02% YTD up from last week’s 14.04%.

• 1yr Rtn +20.26% up from last week’s +19.72%

The S&P 500 reached its latest new high of 2,575.33 on October 20, 2017.

Its previous high of 2,556,65 was reached on week earlier on October 13, 2017.

On March 1, 2017, that index stood at 2,400.98.

 

-NASDAQ +23.15% YTD up from last week’s +22.71%.

• 1yr Rtn +26.46% down from last week’s 26.71%

The Nasdaq reached a new all-time high of 6,640.03 on October 20, 2017.

Its previous high of 6,,616.58 was reached on October 13, 2017.

On April 5, 2017 the index closed at 5,936.39.

 

-Russell 2000 +11.21% YTD up from last week’s +10.72%.

• 1yr Rtn +23.73% up considerably from last week’s +23.60%

The Russell 2000 reached a new all-time high of 1,514.94 on October 20, 2017.

Its previous high of 1,514.94 was reached on October 5, 2017.

On March 1, 2017 this index stood at 1,414,82.

 

-Mutual funds

Average year-to-date returns up once again.

The year-to-date average cumulative total reinvested return for equity funds falling under the broad U.S. Diversified Equity Funds moved up a bit when posted at the close of business on Thursday, October 19, 2017 and  stood at 13.75%, accord to Lipper. The previous week the return was 13.54%.

Comparing this week’s Thursday figures to last week’s, the average Sector Fund had a year-to-date total return of 9.53%, down a bit from the week earlier figure of 9.83%.

This week, the two fund types with y-t-d average figures of over 30% were the same fund types—Global Science & Technology funds up on average 39.47% ( last week’s figure 39.38%) and your basic Science & Technology funds, +32.39% ( up from last week’s figure of 32.01%).

World Equity Funds were down a hair from where they were last week at 24.44%, the week previous the figure was 24.54%. Four of them still had year-to-date average returns up over 30%: China Region Funds at +38.39% and down from last week’s +39.04; Pacific Ex-Japan Funds, 33.82% also down from last week’s +33.61%; India Region Funds, +32.32% up from last week’s+32.05; and Latin American Funds, +30.39% down from last week’s 30.94%.

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.

 

• IPO advice

 When I was a broker, getting in on a hot IPO was something many investors clamored to do in hopes of making some quick bucks  knowing well in advance that the likelihood of their orders being filled wasn’t guaranteed.Of course, that was during the last century.

Today, astute investors have learned that jumping on a company’s IPO gun before it fires can backfire. Especially if the company has no profits before going public.

To minimize that kind of IPO risks, Investor’sBusinessDaily offers these smart and common sense tips for IPO wannabees:

• Don’t buy an IPO stock until it forms and breaks out of its first base.
• Focus on profitable companies showing technical strength.
• Cut losses short if the trade goes against you.

 

-30-

 

 

 

 

 

 

 

 

 

 

 

 

POCKETBOOK: Week ending Oct. 6, 2017

•Well, look who is saving money.

If you thought that Millennials were just snotty nosed kids with no social graces and only focused on all things hand-held, you may be right. But you’d also be missing something: Turns out these 18-34 year-olds are good savers.

According to a recent NerdWallet survey of 2,000 folks, Millennial parents are contributing 10% of their income to—drum roll please—-retirement savings.

Compare that to Generation X people (aged 35 to 54) are saving 8% of their income for retirement and working Baby Boomers (55 and older) only 5%.

Maybe financial literacy does pay off.

 

• Market Quick Glance

Clearly the market hasn’t had enough of a running bull as it’s been another week of the closing at new high records on the indices followed below.

As was the case at the end of September, the Russell 2000 has been the index to play—up again rewarding believers in it more than they may have ever expected.

Where and when the bears will appear on Wall Street continues to be anybody’s guess. But what isn’t guess-related  is how the stocks, funds and investments in your portfolio have performed so far this year. It is going to be year-end before we know it and  one of the most rewarding gifts one can give to one, is profit taking.

On that note, below are the weekly and 1-year index performance results— including the dates each reached new highs—according to CNBC.com based on prices at the close of business on Friday, October 6, 2017.

-DJIA +15.24% YTD up a heap from last week’s 13.37%.

• 1 yr Rtn +24.66% up from last week’s 23.49%

And a new all-time high for the DJIA was reached on October 5, 2017 of 22,777.04.

The previous high of 22,419.51 was reached on Sept. 21, 2017.

On March 1, the Dow stood at 21,169.11.

 

-S&P 500 +13.87% YTD up from last week’s 12,53%.

• 1yr Rtn +17.98% up from last week’s +17.12%

The S&P 500 reached a new high of 2,552.51 on October 5, 2017.

The previous high of 2,519,44 was reached on September 29, 2017.

On March 1, 2017, that index stood at 2,400.98.

 

-NASDAQ +22.42% YTD up a heap from last week’s +20.67%.

• 1yr Rtn +24.18% up from last week’s 23.28%

The Nasdaq reached a new all-time high of 6,590.18 on October 6, 2017.

Its previous high of 6,497.98 was reached on September 29, 2017.

On April 5, 2017 the index closed at 5,936.39.

 

 

-Russell 2000 +11.28% YTD up a heap from last week’s +9.85%.

• 1yr Rtn +21.18% up considerably from last week’s +20.45%

The Russell 2000 reached a new all-time high of 1,514.94 on October 5, 2017.

Its previous high of 1493.56 was reached on September 29, 2017.

On March 1, 2017 this index stood at 1,414,82.

 

-Mutual funds

 And once again, mutual fund average performance figures continue upward.

For the week ending Thursday, October 5, 2017, the year-to-date average cumulative total reinvested return for equity funds falling under the broad U.S. Diversified Equity Funds heading was 13.65, according to Lipper. That’s up enough to notice from the previous week’s figure of 11.86%.

Briefly, it’s been a growth year for all types of growth funds including large-cap, large-cap core, all varieties of mid- and multi-cap growth funds and the same for small-cap funds.

That said, one of these weeks the tide will turn and value will wind up being the place to have some money invested. While that day isn’t today, value funds have way outperformed the kind of measly return folks have gotten on their money market funds, in their savings accounts and bond funds.

For instance, Large- and Multi-Cap Value funds were both up on average well over 10% year to date. Nothing to whine about there. Additionally, Mid-Cap Value funds were up on average 8.42% and Small-Cap Value funds up 6.58%.

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.

 

• Airline fees sky-high

 Once upon a time, flying used to be a lot of fun. People dressed up to fly. Full meals were served in coach. Seats were comfy with plenty of leg room and the width to accommodate most butts. But, as we all know butt size has changed and so has everything else about air travel.

In addition to security measures all travelers have to endure before boarding flights, there are restrictions regarding luggage, etc.

All of which has made flying more uncomfortable for everyone and more profitable for the airline industry. I find that shameful as it represents a long-term trend in America that has put corporate profits way ahead of the quality of the products offered.

Worse yet, it’s costing all of us more to fly as the bundles of bucks the airline industry now brings in is coming from all of the ancillary fees charged. Like those for ticket fees, baggage fees, etc.

According to a piece on travel guru Peter Greenberg’s travel blog, PeterGreenberg.com, “ten years ago the airlines generated about $2.1 billion in ancillary fees….Today that airlines have racked up $28 billion in fees—-more than they profit from actually flying the planes or operating as airlines.”

Again, that’s shameful.

-30-

 

POCKETBOOK: Week ending Sept. 22, 2017

•Closing shop

Lately  I’ve read more than one story about how U.S. workers are earning more than ever  which makes me scratch my head with wonder, “How, in fact, can that be when some of our favorite—and long-standing– stores are closing?”

No wise answer from me on that one. But below is a list of the various stores that have or will be closing some or all of their shops.

According to CNBC.com, here are some of the companies that have either filed for Chapter 11 bankruptcy protection or Chapter 7 so far in 2017: The Limited; Wet Seal; Eastern Outfitters; BCBG Max Azria; Vanity; Hhgregg; RadioShack; Gordmans; Gander Mountain; Payless ShoeSource; Rue 21; Gymboree; Cornerstone Apparel, the owner of Papaya Clothing; True Religion Apparel; Alfred Angelo; Perfumania; Vitamin World; Aerosoles; and Toys R Us.

I already miss RadioShack. And Payless. And Hhgregg. And….

 

• Market Quick Glance

It was a week of gains for two of the four indices followed below. Additionally, the DJIA and S&P 500 closed at new highs for the year. All according to data from CNBC.com based on prices at the close of business on Friday, Sept. 22, 2017.

Below are the weekly and 1-year index performance results— including the dates each reached new highs.

-DJIA +13.09 YTD up from last week’s 12.68%.

• 1 yr Rtn +21.51% down from last week’s 22.27%

A new all-time high for the DJIA of 22,419.51 was reached on Sept. 21, 2017. The previous high of 22,275.02 was reached on September 15, 2017.

On March 1, the all-time high on that date for the year was 21,169.11.

 

-S&P 500 +11.76 % YTD up a tad from last week’s 11.68%.

• 1yr Rtn +14.93% down from last week’s +16.44%

The S&P 500 reached a new high of 2,508.85 on September 20, 2017. The previous high of 2,500.23 was reached on September 15, 2017.

On March 1, 2017, that index closed at its then all-time high of 2,400.98.

 

-NASDAQ +19.39% YTD down from last week’s +19.79%.

• 1yr Rtn +20.37% down from last week’s 22.84%

The Nasdaq reached its latest new all-time high on September 18, 2017 of 6,477.77. Its previous high was reached September 15, 2017 closing at 6,464.27.

On April 5, 2017 the index closed at 5,936.39.

 

-Russell 2000 +6.90% YTD up a heap from last week’s +5.50%.

• 1yr Rtn +14.83% down from last week’s +16.68%

The Russell 2000 reached its latest all-time high of 1,452.09 on July 25, 2017.

On March 1, 2017 the then high of this index was 1,414,82.

 

-Mutual funds

Picking up a bit of steam, the year-to-date average cumulative total reinvested return for equity funds falling under the broad U.S. Diversified Equity Funds heading ended the week at 10.70% on Thursday, September 21, 2017. That’s up from the previous week’s close of 10.11%, according to Lipper.

In case you were wondering, the average y-t-d- return for the 4,501 funds that fall under the World Equity Funds heading was 22.69%; for the 5,887 funds that fall under the Mixed Asset Funds heading was 9.50l and for the 2,282 different Sector Equity Funds was 7.95%.

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.

 

• Talking both sides

We all know that this bull market has gone on even longer that many had expected.

Although when and why its upward trend in index results will come to an end continues to be anybody’s guess. But that doesn’t stop financial talking heads from making predictions.

One such head reporting in last week came from TIAA Investments’s Brian Nick.

Nick is expecting to see a four percent decline in their firm’s target for the S&P 500 by year-end. That would put it at 2400.

But wait, there’s more.

Nick also thinks that this current bull market still has room to run. By the end of 2018—that’s next year—the target his firm has put on the S&P 500 is 2600.

Neither of which does little to make feeling comfortable or cozy about staying in the market or investing new money very easy.

-30-

 

 

 

 

 

 

 

 

POCKETBOOK: Week ending July 7, 2017

• 

•Losing money in the market?

There has never been any honest-to-God guarantees that come once you decide to invest some of your money into the stock markets. And there never will be.

That’s because, in the broadest sense, as stocks trade hands during every trading day of the year profits and loses are chalked up in all individual and professional account ledgers.

With that reality in mind, Barbara Friedberg penned a piece titled “Why People Lose Money in the Market” that appeared at TheBalance.com recently.

According to this former portfolio manager turned author, the three reasons people lose money are:

-Because they don’t understand economic and investment cycles.

-Because they let their emotions drive their investing.

-And because they think investing is a get-rich-quick scheme.

Got that?

 

• Market Quick Glance

The major indices closed up during the past week. And that’s the good news.

What’s the bad? Who knows. The bull that has been running wild on Wall Street for the last eight years seems to be some kind of  anchored. And until the future provides us with a look at the past, we won’t know for sure what does this bully in.

Below are the weekly and 1-year index performance results— including the dates each has reached  new highs. All  this according to data from CNBC.com. and based  upon market results at the close of business for the week ending on Friday, July 7,   2017.

-DJIA + 8.36% YTD up from last week’s +8.03%

• 1 yr Rtn +19.66% up from last week’s 19.07%

The DJIA reached a new all-time high on July 3,2017 of 21,562.75.

(Previous highs include 21,535.03 on June 20, 2017; 21,391.97 reached on June 14, 2017; 21,305.35 on June 9, 2017; 21,225.04 on June 2, 2017; and 21,169.11 on March 1, 2017.)

 

-S&P 500 +8.32% YTD up from last week’s 8.24%

• 1yr Rtn +15.60% up from last week’s +15.46%

The S&P 500 reached a new all-time high of 2,453.82 on June 19,2017.

(The previous high of 2,446.2 was reached on June 9, 2017. Before that 2,440.23 was reached on June 2, 2017; 2,418.71 reached on May 25, 2017; 2,405.77 reached on May 16, 2017; 2403.87 on May 9, 2017; 2,400.98 reached on March 1, 2017.)

 

-NASDAQ +14.307% YTD up from last week’s +14.07%

• 1yr Rtn +26.17% down from last week’s 26.80%

The Nasdaq reached a new all-time high of 6,341.7 on June 9, 2017.

(Previous highs include: 6,308.76 on June 2; 6,217.34 reached on May 25; 6,170,16 on May 16; 6,133 on May 9, 2017; 6102.72 on May 2, 2017; 6074.04 on April 28, 2017; and 5,936.39 on April 5, 2017.)

 

-Russell 2000 +4.33% YTD up from last week’s +4.29%

• 1yr Rtn +23.14% up from last week’s +22.87%

The Russell 2000 reached its latest all-time high of 1,433.789 on June 9, 2017.

(Previous highs include 1,425.7 reached on April 26, 2017 and of 1,414,82 reached on March 1, 2017.)

 

-Mutual funds

Equity funds lost ground last week as, at the close of business on Thursday, July 6, 2017, the year-to-date total return for the average U.S. Diversified Equity Funds stood at 6.95%. That’s down from the previous week’s close of 7.52%.

Looking back over the last 52 weeks (7/7/16 thru 7/6/17), the three fund types under this broad heading that have rewarded their shareholders the most include: Equity Leverage Funds +33.39%; Small-Cap Value Fund, ++21.06%; Small-Cap Growth Funds, +20.87%.

The three fund types experiencing the poorest returns over that same time period were: Dedicated Short-Bias Funds, -23.22%; Alternative Equity Market Neutral Funds, +0.90%; and Specialty Diversified Equity Funds, +4.30%.

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.

 

• Got stocks?

The market has been roaring this year but that doesn’t mean everyone has participated in the bounty. In fact, according to a 2016 Gallup Poll, just over half (52%) of American adults say that they had money invested in the stock market.

That’s down from a high of 65% in 2007.

It  ought to come as no surprise that those who make up the middle-class and who were in the market prior to the crash of 2007 have stayed away from it in recent years.

On another kinda sorta related subject, the American Bankers Association Consumer Credit Delinquency Bulletin has reported that in the first quarter of 2017 there was an increase in late payments for car, truck, home equity and credit card loans/debts.

Guess if you don’t have enough cash to meet your monthly expenses/commitments it’s not likely that you’ll have enough to invest in the market.

-30-

 

 

 

 

 

 

 

 

 

POCKETBOOK: Week ending June 16, 2017

• 

• Income investors

Funny thing about investors—seasoned as well as  newbies. For some reason they imagine, hope for and quite often expect annual returns that just aren’t likely to happen. Call it dreaming. Call it denial. Call it believing a sales pitch. Call it whatever you’d like but it turns out believing less is more is better for your psyche that expecting more and getting less.

But hasn’t expecting less always been a sound route to take in everything life and money related?

On that money score, Lisa Abramowicz wrote a piece for Bloomberg.com titled, “Stop Fooling Yourself About 8% Easy Returns”. The piece focuses on the results of a Legg Mason, Inc. survey of fixed-income investors.

Most were expecting average annual returns of 8.6%. Those still working expected 9%.

Both are in-your-dreams like state of annual return hopes. Unless, of course, your dreams are risky and racy.

Want to maybe be kinda sorta happy with your annual and longer term investment returns—fixed income or otherwise? Then think somewhere in the neighborhood of 5%—give or take.

 

• Market Quick Glance

Any short-term investor and day trader looking for sound evidence that this market is headed in one direction or another probably understands better than most that each day is a new day. And as such, brings with it new opportunities and financial challenges and rewards.

Long-term investors would be wise to remember that as well.

Below are the weekly and 1-year index performance results— including the dates each reached new highs— according to data from CNBC.com. Data is based on prices at the close of business for the week ending on Friday, June 23, 2017.

-DJIA + 8.26% YTD up a hair from last week’s +8.21%

• 1 yr Rtn +18.79% down from last week’s 20.59%

The DJIA reached a new all-time high of 21,535.03 on June 20, 2017. (Previous high of 21,391.97 reached on June 14, 2017; before it 21,305.35 on June 9, 2017; 21,225.04 on June 2, 2017; and 21,169.11 on March 1, 2017.)

 

-S&P 500 +8.91% YTD up a hair from last week’s 8.68%

• 1yr Rtn +15.38% down a chuck from last week’s +17.09%

The S&P 500 reached a new all-time high of 2,453.82 on June 19,2017. (Previous high of 2,446.2 was reached on June 9, 2017. Before that 2,440.23 was reached on June 2, 2017; 2,418.71 reached on May 25, 2017; 2,405.77 reached on May 16, 2017; 2403.87 on May 9, 2017; 2,400.98 reached on March 1, 2017.)

 

-NASDAQ +16.39% YTD up attractively from last week’s +14.28%

• 1yr Rtn +27.60% up from last week’s 26.97%

The Nasdaq reached its most recent new all-time high of 6,341.7 on June 9, 2017. (Previous highs include: 6,308.76 on June 2; 6,217.34 reached on May 25; 6,170,16 on May 16; 6,133 on May 9, 2017; 6102.72 on May 2, 2017; 6074.04 on April 28, 2017; and 5,936.39 on April 5, 2017.)

 

-Russell 2000 +4.25% YTD up a tidy amount from last week’s +3.65%

• 1yr Rtn +20.69% down from last week’s +22.52%

The Russell 2000 reached its latest all-time high of 1,433.789 on June 9, 2017. (Previous highs include 1,425.7 reached on April 26, 2017 and of 1,414,82 reached on March 1, 2017.)

 

-Mutual funds

No big change in the average total return for funds that fall under the broad heading of U.S. Diversified Equity Fund. At the close of business on Thursday, June 22, 2017 the average equity fund’s year-to-date return was 7.57%. The previous week’s figure was 7.58%.

Those looking for attractive returns found them in World Equity Funds. Year-to-date the average return for the 4,533 funds under this heading was 15.28%. Wouldn’t you just love to lock a return like that in for the year?

The biggest scorers were India Region Funds, up on average 26.84%; Pacific Ex Japan Funds, 21.83%; China Region Funds, 21.46%;; and International Small/Mid-Cap Growth Funds, at 18.52%.

There are 26 different fund categories under that heading and only three of them had average total returns of under 10%. They were Latin American Funds, 9.61%; Global Multi-Cap Funds, 9.11%; and Global Equity Income Funds, 9.00%.

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.

 

• This could make you sick

Fingers crossed that the revised health-care plan the Senate has proposed will not get enough votes to pass. If it does, the poor, elderly and sick will become poorer and health care costs and premiums will continue to go up as they always have. Additionally, grandma will likely be asking you if she can move in as a number of those who need full-time care in nursing homes will get the boot.

And don’t believe the way too bleached blonde Kellyanne Conway who says those on Medicaid who lose health care coverage can always get a job with a company that has health insurance and will cover them. That’s just plain poppycock and simply not true. It’s also a perfect example of how out of touch this White House and its administration is with millions upon millions of people who make up our population in America.

So, if you’re looking for some startling data on where in the country and in which states a repeal of Obamacare would impact people the most, BusinessInsider.com can help. In a story titled, “MAP: Areas of the US where an Obamacare repeal would hit the heardest”, are two maps worth looking at.

In one map you will see the areas in the U.S. where a repeal of Obamacare would impact people the most. In the second is a state by state look. Do check out both.

The story and the maps can be found here: http://www.businessinsider.com/where-obamacare-repeal-would-hit-the-hardest-map-2017-6

 

-30-

 

POCKETBOOK: Week ending June 9, 2017

• A correction on its way?

 The fine folks at the Bespoke Investment Group have a way of clarifying all things market related using historic facts and figures.

From them comes this bundle of S&P goodies that may or may not help you with your investing goals and expectations:

• The S&P 500 hasn’t had a 10% correction in the last 16 months.
• The current rally has lasted 477 calendar days making it the 11^th longest run for that index without a 10% correction since 1928.
• If you think that the S&P 500 is going to continue the rally and hope it becomes one of the longest running rallies around, it needs to run another 173 days.
• To pull that off, this rally would have to go on past Thanksgiving.

Looks like enthusiastic S&P 500 bulls need to think “turkey trot”.

BTW, Bespoke also reported that when a correction does come along after rallies lasting  10 years or more, the decline has been  15.7% over 142 days. “Compared to all corrections since 1928 where the average decline was 19.5%,…”

 

• Market Quick Glance

Believe it or not, the S&P 500 and the NASDAQ were both down from their previous week’s close and their 1-year returns were down as well. That means the star performing index turned out to be the Russell 2000—it was up on both scores.

Depending upon which money guru you read or take the advice of, the bull market in equities is getting a little long in the tooth or still has plenty of space to run.

Below are weekly and 1-year performance results— including the dates each reached new highs— according to data from CNBC.com. Data is based on prices at the close of business for the week ending on Friday, June 9, 2017.

 

-DJIA +7.64% YTD up from last week’s +7.30%

• 1 yr Rtn +18.27% down from last week’s 19.08%

The DJIA reached a new all-time high of 21,305.35 on June 9, 2017. That’s one week after the 21,225.04 high reached on June 2, 2017. (Previous high of 21,169.11 was reached on March 1, 2017.)

 

-S&P 500 +8.62% YTD down from last week’s 8.90%

• 1yr Rtn +14.95% down from last week’s +16.15%

The S&P 500 reached a new all-time high of 2,446.2 on June 9, 2017. That’s one week after the 2,440.23 reached on June 2, 2017. (Previous highs of 2,418.71 was reached on May 25, 2017; the high of 2,405.77 was reached on May 16, 2017; the high of 2403.87 was reached on May 9, 2017; and the a high of 2,400.98 was reached on March 1, 2017. )

 

 

-NASDAQ +15.32% YTD down from last week’s +17.14%

• 1yr Rtn +25.19% down from last week’s 26.84%

The NASDAQ reached another new all-time high of 6,341.7 on June 9, 2017. (Some of the other previous highs include:6,308.76 on June 2; 6,217.34 reached on May 25; 6,170,16 on May 16; 6,133 on May 9, 2017; 6102.72 on May 2, 2017; 6074.04 on April 28, 2017; and 5,936.39 on April 5, 2017.)

 

–Russell 2000 +4.76% YTD up from last week’s +3.56%

• 1yr Rtn +20.36 % upfrom last week’s +20.06%

The Russell 2000 reached a new all-time high of 1,433.789 on June 9, 2017. (Previous high of 1,425.7 was reached on April 26, 2017 and before that a high of 1,414,82 was reached on March 1, 2017.)

 

-Mutual funds

The average U.S. Diversified Equity Fund was up a tad from the previous week. So, at the close of business on Thursday, June 8, 2017 the average equity fund’s year-to-date return was 7.90%. The previous week’s figure was 7.56%.

Once again, the top performance categories under that heading are beginning to sound like a broken record—with one exception: the order has changed. The top performing group was Equity Leverage Funds, up 17.47 ahead of Large-Cap Growth Funds up 17.21% followed by Multi-Cap Growth Funds, up 15.77%

For a second week in a row the average Sector Fund return barely budged and ended the week up 4.79% a hair about the previous week’s close of 4.78%.

It is still a Global Science/Technology Funds world, up 27.58%. And Commodities Energy Funds continued to lose more ground with the average fund -19.37% ( previous week the figure was -16.07%).

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.

 

• Rate hikes

The Fed is expected to raise rates by 25 basis points—that translates to one-quarter of one percent.

That means life has gotten more expensive for anyone with an adjustable mortgage or home equity line of credit, or who is applying for a new mortgage, car loan or has with credit card debt that isn’t paid off in full each month.

It also means banks will be getting more of your money should you have any of the relationships mentioned above in place.

Unfortunately, an interest rate increase like that won’t mean much for savers who earn interes on their savings accounts.

-30-

 

 

 

 

 

 

 

 

 

 

POCKETBOOK: Week ending April 13, 2017

 

• Pay me more

Sometimes I am totally baffled by the head-in-the-sand and sheer stupidity of many who make their  living on Wall Street, in Washington, the insurance industry, corporate America, etc.,  regarding wages.

Recently I read a headline in the financial section of an online source that hoped to draw readers in by listing the reasons why people don’t save enough money for their retirement.

The headline brought out a big Homer Simpson “D’oh” in me. Why? Because I see the answer as clear as the nose on my face.

If it isn’t clear to you, let me explain: The reason is because wages—for those with a job– still stink. And that translates into the simple reality that people aren’t bringing home a paycheck fat enough to cover monthly expenses never mind having enough to save for retirement. Many of whom, btw, live paycheck to paycheck, couldn’t handle a family emergency expense of 500 bucks and have no retirement account of any sort.

Thinking everybody has enough money to save for their retirement is just plain ignorant. About as ignorant as thinking that keeping healthy is a personal choice—no genetics involved there.

I’m not sure why the not-enough-money thing is so hard for those in corporate America, Congress, etc. to get. Unless, of course, keeping your company’s shareholders happy has become more important that paying a decent living wage to the individuals who keep your business in business. Or perhaps pure greed is behind it all. But we all know that greed has never made a country—or the citizens living in it— great.

It’s time for those who decide pay scales to wake up. Wages not keeping up with the cost of living isn’t a new story. It’s decades old. And unless serious changes are made, won’t be going away anytime soon.

 

• Market Quick Glance

Stock indices were all down at the close of this past 4-day week on Wall Street. Biggest hit was to the Russell 2000—its 1-year performance closed under water. We haven’t seen that kind of year-to-date return in more weeks than many would like to mention.

Re the markets, iIf you haven’t realized it by now, Americans don’t like wars. Or any worries or concerns about the likelihood of one anywhere in the world that the US might be involved or participate in.

And if you haven’t realized it by now, our current president has a bullying nature that some see as a positive while others find his  behavior as undermining our country’s security.

So, even though earnings reports may be strong in some sectors, nothing is stronger than fear. Realized. Unrealized. Made up. Or in-your-face.

These are delicate times. Invest carefully.

Below are the weekly and 52-week performance results— including the dates each has reached its high, according to data from CNBC.com. Data is based on prices at the close of business for the week ending  Thursday, April 13, 2017.

-Indices:

-Dow Jones +3.49% YTD, down from last week’s 4.52%

• 1yr Rtn +14.10% down from last week’s 17.75%

The DJIA reached an all-time high of 21,169.11 on March 1, 2017.

 

-S&P 500 +4.03 YTD down from last week’s 5.21%

• 1yr Rtn +11.82% down from last week’s +15.36%

The S&P 500 reached an all-time high of 2,400.98 on March 1, 2017.

 

-NASDAQ +7.84% YTD down from last week’s +9.19%

• 1yr Rtn +17.37% down from last week’s 21.23%

The Nasdaq reached its all-time high of 5,936.39 on April 5, 2017.

 

–Russell 2000 YTD  -0.88% way down from last week’s +0.55%%

• 1yr Rtn +19.20% down  from last week’s +24.87 %

The Russell 2000 reached its all time high of 1, 414.82 on March 1, 2017.

 

-Mutual funds

Ouch.

At the close of business on Thursday, April 13,2017, the average total return for U.S. Diversified Equity Funds closed at 2.98%, down from last week’s 4.17% return, according to Lipper.

Of the 20 different fund types that fall under the broad U.S. Diversified Fund heading, for the first time this year there wasn’t one group reporting a double-digit year-to-date average return. Top and bottom fund types include Equity Leveraged Funds, up on average 8.95% and Dedicated Short Bias, -6.75%.

Even World Equity Funds lost ground. The average fund under this heading was +8.21% down from last week’s 8.59%.

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.

• The cat is out of the bag

There are no words to  excuse the violent behavior that grown adults imposed on United Airlines passenger Dr. David Dao last week. Dr. Dao’s injuries include a broken nose, teeth knocked out, a concussion and the impossible to gage long-term trauma he will suffer.

One of the results of that horrible encounter is that airlines will pay.

No, I’m not speaking of the lawsuit Dr. Dao will likely bring but the pretty much kept-to-a-secret amount of money airlines would pay to passengers willing to give up their seat on overbooked flights.

On the day of the incident, United offered passengers $400 and a free night in a hotel if they chose to take a later flight, according to Graffiotech.com.

Turns out, the cap on dollars offered within the industry is $1,350.

Who knew?

I’m guessing not many passengers.  If they had  been offered a four-figure amount to get off that plane, perhaps that incident would not have happened. Perhaps.

As a result of this better-not-ever-happen-again incident, Delta Air Lines has just upped the please-take-another-flight-offer  ante: According to The Associated Press, Delta gate agents can now offer up to $2000 to passengers choosing to take another flight—that’s up from $800. And better yet, Delta supervisors can now offer up to $9,950—up from 1350.

Perhaps, sums like that will be attractive enough to passengers and make a change of plans more palatable for all concerned.

We shall see.

 

-30-

 

 

POCKETBOOK:Week ending March 4, 2017

• A winning high in no time at all.

 It only took 24 days for the DJIA to gain 1000 points  when it closed for the first time over 2100.

The only other time that has happened in the history of the DJIA was in 1999 when the Dow rose from 10,000 to 11,000. And that was during the internet boom, according to CBSMoneyWatch.

 

• Market Quick Glance

 More ups. More records. Even a birthday…..

Let’s begin with the birthday. On Saturday, March 4, 2017, the S&P 500—-the world’s biggest stock market index—-turned 60!

Investors turn to the S&P 500 index because it provides them with a better overall look at how large-cap stocks are doing than the snapshot the 30 stocks that make up the DJIA do.

Back to the mores….last week  still more highs for the major indices were reached as the  week  came to a close. Details below.

Below are the weekly and 52-week performance results— including the dates each has reached its high according to data from CNBC.com. Data is based on prices at the close of business for the week ending March 3, 2017.

-Indices:

-Dow Jones + 6.29% YTD, up from last week’s 5.36%

• 1yr Rtn +23.97% down from last week’s 26.31%

The DJIA reached a 52-week high of 21,169.11 on March 3, 2017. (Previous all-time high of 20,840.7 was reached on Feb. 23, 2017.)

 

-S&P 500 +6.44% YTD up from last week’s 5.74%

• 1yr Rtn +19.55% down from last week’s +22.67 %

The S&P 500 reached a 52-week high of 2,400.98 on March 1, 2017. (Previous all-time high of 2,368.26 was reached on Feb. 23, 2017.)

 

-NASDAQ +9.06% YTD up from last week’s +8.59%

• 1yr Rtn +24.71% down a lot from last week’s 28.68%

The Nasdaq reached a 52-week high and its all-time of 5,911,79 on March 1, 2017. (Previous all-time high of of 5,867.89 was reached on Feb. 21, 2017.)

 

–Russell 2000 +2,73 YTD% down a hair from last week’s +2.76 %

• 1yr Rtn +29.56% down considerably from last week’s +36.44 %

The Russell 2000 reached its 52-week high and its all time high of 1, 414.82 on March 1, 2017.( Previous all-time high of 1,410.04 was reached on on Feb.21, 2107.)

 

-Mutual funds

Still on the upswing.

The average total return for U.S. Diversified Equity Funds closed up at 5.22% at the close of business on Thursday, March 2, 2017, according to Lipper. That’s up from the previous week’s close of 4.82%.

World Equity Funds were up on average 6.16% with India Region and Latin American Funds continuing to lead the way— up 11.97% and 10.41% respectively, on average.

Looking at the 25 largest mutual funds around (based upon assets), PowerSharesQQQ Trust1 was up the most at 10.50% year-to-date, as of March 2, 2107. Next in performance line  iShares Russ 1000 Gr ETF, up 8.43% and then the American Funds Growth:A, up 7.68%.

The puniest returns out of this group were seen in funds with substantial fixed-income holdings: As in the iShares: Core US Agg Bond fund, up 0.18; the DoubleLine: Total Return; I shares, up 0.24%; and the Met West: Total Return up 0.33%.

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.

 

• Like defense?

If you’re a believer that the new administration is going to increase defense spending big time in the near future, Morningstar covers a half-dozen defence contractor companies that you might to investigate as well.

The Chicago-based investment research group considers these companies as “fairly valued to overvalued” and include Lockheed Martin (LMT); Northrop Grumman (NOC); Raytheon (RTN); General Dynamics (GD); Boeing (BA) and L3 Technologies (LLL).

Make sure to do your own research and homework before investing in these companies. Or anything, for that matter.

-30-