Tag Archives: CNBC

POCKETBOOK: Week ending June 16, 2017

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  • 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

 

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POCKETBOOK: Week ending Feb. 4, 2017

  • img_1539REPEAT: Markets hate uncertainty

This was the opening piece in last week’s POCKETBOOK but it’s worth rereading particularly given the decisions, actions and tweets of President Trump over the past week.

Funny thing about the stock market: On the one hand it looks ahead, on the other it doesn’t like uncertainty. Or social unrest and there is plenty of that going on.

So, with a new President in town, and one who takes bold actions and is hard to figure, investors would be wise to expect a fair amount of market volatility going forward. Also, that life is going to be more expensive on a number of fronts for individuals and the country.

Re the country, expect more debt..

Even though the GOP is no fan of debt, President Trump has been called the King of Debt. Which is okay when your kingdom is a privately held corporation. But not so okay when you are a public servant.

  • Market Quick Glance

Once again the Dow Jones Industrial Average closed over 20,000 and at 20,071.46 on Friday, Feb. 3, 2017. Nonetheless, the Dow lost ground over the week from its previous week’s close —and— for the past year.

Looking at just the 1-year returns, the Russell 2000 appears to have been the place to be: Up over 36% for the past year. But numbers can be deceiving—the Russell 2000 hit its all time high in December 2016 unlike the other three indices followed here. Each of them reached their new highs in January.

Below are the weekly and 1-year performance results for four popular stock indices based on the close of business prices at the close of business on Friday, Feb. 3, according to CNBC.com. (I’ve changed sources here because Bloomberg.com has changed its format and, in my opinion, the new site, its look and the changes for the free user are horrible.)

-Indices:

-Dow Jones + 1.56% YTD, down a bit from last week’s 1.78%

  • 1yr Rtn +22.86% down from last week’s 25.32%

The DJIA reached its all time high of 20,125.58 on 1/26/17

 

-S&P 500 +2.62% YTD up a bit from last week’s 2.60% YTD

  • 1yr Rtn +20.86% down bit last week’s 20.86%

The S&P 500 reached its all time high of 2,300.99 on 1/26/17

 

-NASDAQ +5.27% YTD up a bit from last week’s 5.20%

  • 1yr Rtn +25.81% way up from last week’s 24.36%

The Nasdaq reached its all time high of 5,669.61 on 1/26/17

 

–Russell 2000 +1.53% up from last week’s +1.05%

  • 1yr Rtn +36.38% up from last week’s 34.36%

The Russell 2000 reached its all time high of1,392.71 on 12/9/16

 

-Mutual funds

A bit of a downer as far as the average goes for the 8,479 funds that fall under the U.S. Diversified Equity Fund umbrella. At the close of business on Thursday, Feb.2, 2017 the average year-to-date return for those funds was 1.81%, according to Lipper. That was down the previous week’s 2.61% average.

Under that broad U.S. Diversified Equity Fund heading, Equity Leverage Funds which were hotsy totsy the week before lost ground from their up 7.52% average with  YTD returns now at  5.59%. Next in performance were Large-Cap Growth Funds up 4.27% followed by Multi-Cap Growth Funds, up 4.14%.

Precious Metals Equity Funds scored the highest under the Sector Fund heading, up 17.38% on average. The average YTD return for the 2,307 funds under the Sector Fund heading was up 2.48%.

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.

 

  • Let’s talk unemployment and say “Thank You, Obama.”

When it comes to the unemployed, there are fewer of them now (on record) than there were seven years ago.

Jon Erlichman, a journalist for Fortune, the Business News Network and a number of other outlets, posted the U.S Unemployment Rates based on end of January figures.

In a nutshell, they reveal that at the end of Jan. 2010 the unemployment rate was 9.8%—at the end of Jan. 2017, that rate stood at 4.8%.

Thank you, President Obama.

The bar has now been set for President Trump, who took office officially on Jan. 20, 2017.

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POCKETBOOK: Week ending Dec.31, 2016

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  • It’s all about the numbers

If you were in the stock market in 2016, odds are you made money.

According to CNNMoney, 77% of investors made money. How much? OpenFolio reported that the average investor enjoyed a 5% increase in the value of their investments.

Unfortunately, men’s portfolios outperformed those owned by the ladies, reports that same source. Which, BTW, is nothing new. That trend has been going on for the past three years. Oh my.

  • Market Quick Glance

The chart at the top of this blog sums up the performance of the indices in 2016  very nicely with one exception: It’s missing the performance of the Russell 2000—- it  ended the year up a whopping 19.48%, according to CNNMoney.com

Here are a very few of the best and worst performing stocks in 2016:

  • The top performing stock in the DJIA was Caterpillar, up 36.46%, according to CNBC.com. The worst, Nike, down18.67%.
  • The best performing stock in the S&P 500 was Nvidia, up 224%, and the worst was  Endo International, down 73.1%, according to Salon.com.

Although no one knows how the markets will perform in the short-term, as in 2017, the  chart below, cockeyed as it is, shows how the DJIA has moved over the past 10 years, from 2007 through 2016.  (Source: It and the chart at the beginning of this blog are pictures  I took of charts  found at CNBC.com on Friday, December 30, 2016.)

A DJIA 10-year mountain chart:

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-Mutual funds

All was shiny and bright for many stock fund investors as at the close of business on Thursday, Dec. 29, 2016, the performance of the average U.S. Diversified Equity Fund was up 11.23%, off a bit from the previous week’s clost of 11.53%, according to Lipper.

Under that broad heading, Small-Cap Value Funds’ scores were the highest with the average return up 27.25%. Dedicated Short Bias Funds were down the most, off 25.69%.

Under the Sector Equity Funds heading, where the highest gains (and losses) are likely to be found, Precious Metals EquityFunds were the winners—up on average 58.53%. Biggest losing group? Commodities Specialty Funds, down 15.13%.

And, the average General Domestic Taxable Fixed-Income Fund ended the year up 7.47%.

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.

•Hoping 2017 is a happy, healthy and rewarding one for all of us!

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