Tag Archives: DJIA

POCKETBOOK: Week ending May 26, 2018

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  • Uber-Rich Goal Setting

Having a personal goal of a retirement account with $1 million in it is noble, even though 1,000,000 won’t necessarily get many very far in retirement. Certainly not as far as it did 20, 30 or definitely 50 years ago. Nonetheless, that target figure is worth shooting for for the masses.

For the super elite, however, it’s chump change.

According to Bloomberg, in the world of private bankers who cater to the uber-wealthy, having $25 million in investable wealth makes one considered rich and provides the “basic service” from private wealth bankers.

But wait. There’s more.

Business Class for the uber-wealthy in a private banker’s eye takes $100 million; First Class, $200 million; and Private Jet Rich, $1 billion.

Set your goals as your needs dictate.

 

  • Market Quick Glance

Once again it was the NASDAQ and Russell 2000 indices where positive strides were recorded last week.

If the indices are telling investors anything, it’s to have a diversified portfolio.

Nothing exciting about that news except that it’s always wise advice.

Last week Bespoke Investments listed some of NASDAQs best and worst performing stocks so far this year. Here are the names of the most notable in each category:

  • Top 3 performing stocks from the NASDAQ 100:

Netflix (NFLX) up 81.96%; Micron (MU) up 12.41%; and Align Technology (ALGN) up 42.69%.

  • Three biggest losing stocks from the NASDAQ 100:

DISH Network (DISH) down -36.15%, NetEase(NTES) down -35.37%; and Dentsply Sirona (XRAY) down -29.80%.

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, May 25, 2018.

DJIA 0.14% YTD moved up into plus territory from the previous week’s -0.02%

  • 1 yr Rtn 19.61% down from the previous week’s 19.61%

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 1.78% YTD up a tiny bit from week’s 1.47%

  • 1 yr Rtn 12.68% down from last week’s 14.68%

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 7.68% YTD up a little from last week’s 7.24%

  • 1yr Rtn 19.80% down from last week’s 21.46%

Nasdaq reached a brand new all-time high on March 13, 2018 of 7,637.27. The previous high was reached on March 9, 2018 of 7,560.81.

 

-Russell 2000 5.95% YTD up a hair from last week’s 5.93%

  • 1yr Rtn 17.60% down from last week’s 19.51%

The Russell 2000 reached an all-time high on January 24, of 1,615.52. The previous high was reached on January 16, 2018 of 1,604.02.

 

-Mutual funds

With the beginning of summer fast approaching, and the old saying reminding investors to sell in May and go away, that play hasn’t been particularly a good one within the mutual fund arena—so far.

For example,the average performance of the funds under the U.S. Diversified Equity Funds heading was up 3.34% year-to-date at the close of business on Thursday, May 24, 2018. That’s much higher than it was three weeks before– on May 3 it was 0.65%.

Small-Cap Growth funds have made the biggest gains and were up on average over 10%,

Also with heading averages up 10% or more year-to-date were Science & Technology Funds, 10.98%; Global Science & Technology funds, 10.79%; and Commodities Energy Funds, 12.99%.

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.

 

  • Credit Card Debt Growing

Not sure who in Washington has noticed, but it has been apparent to most folks living across America that the cost of living is going up. Who hasn’t noticed that the increased cost of a gallon of gas makes an impact in the amount of disposable cash one has in their pockets? Or that groceries, even at places like Aldi’s, cost a little more? And that a buck or two increase in one’s hourly pay doesn’t translate to much?

So it may come as no surprise that people are using their credit cards more and more. And, not paying their balances off in full each month.

According to MyBudget360.com, there is more than $1 trillion in credit card debt outstanding in America these days.  Most of that debt is on cards issued by smaller banks.

From that source: “Credit card delinquencies at more than 4,700 small US banks are not past the figure reached at the peak of the last financial crisis.”

Oh my.

 

 

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POCKETBOOK: Week ending May 18, 2018

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  • The BEST investing advice EVER

Sometimes the most realistic investment advice comes in the form of a simple truth.

According to Bob Veres, editor of Inside Information as quoted in an ETFTrends.com piece last week, Veres said: “As it turns out, the predictions made by financial experts are no better than those made by gypsies looking into crystal balls, soothsayers gazing at the entrails of a sacrificed animal or wizards with tall caps who gaze into space. In fact, the financial experts might even be LESS reliable than those other charlatans.”

In other words, article author Rick Kahler, wrote: “The problem with accurately predicting what direction the US stock market is heading in the near future is that no expert really knows.”

And as Lily Tomlin’s character Edith Ann used to say, “ And that’s the truth.”

 

  • Market Quick Glance

Last week’s worst performance was in the DJIA—it slumped back into minus territory but not by much—a hair, if you will.

The place to play recently? NASDAQ and Russell 2000 indices. NASDAQ was up the most, Russell 2000 and then the S&P 500.

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, May 18, 2018.

DJIA -0.02% YTD back into minus territory from previous week’s +0.45%

  • 1 yr Rtn 19.61% up from the previous week’s 18.70%

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 1.47% YTD down from week’s 2.02%

  • 1 yr Rtn 14.68% up from last week’s 13.92%

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 7.24% YTD down from last week’s 7.24%

  • 1yr Rtn 21.46% up a tiny bit from last week’s 21.04%

Nasdaq reached a brand new all-time high on March 13, 2018 of 7,637.27. The previous high was reached on March 9, 2018 of 7,560.81.

 

-Russell 2000 5.93% YTD up from last week’s 4.64%

  • 1yr Rtn 19.51% up a lot from last week’s 15.58%

The Russell 2000 reached an all-time high on January 24, of 1,615.52. The previous high was reached on January 16, 2018 of 1,604.02.

 

-Mutual funds

From the May 3 report:

The average fund that falls under the broad U.S. Diversified Equity Funds heading had a year-to-date return of -0.53% at the close of business on Thursday, May 3, 2018, 0.65%, according to Lipper. That’s a fall from the previous week’s 0.65% average.

Small-Cap Growth funds ended the week with an average y-t-d return average of 4.10% —down from the previous week’s 6.27%

Then again Dedicated Short Bias Funds had improved and were down only -4.25% instead of -5.43% from the previous week.

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 a million in your 401(k)? Good. But keep saving.

Once upon a time having a retirement account with one million bucks in it was a big deal. Today, that ain’t necessarily so.

Fidelity Investments reports that at the end of the first quarter of 2018, there were about 50,000 more 401(k) plans with balances of $1 million or more than there were last year. That’s a figure increase from 108,000 to 157,000. Also, that contributors have increased the amount they save.

That’s all good news, accept that all that moola may not be enough to live a comfortable  retirement life.

In a FoxBusiness.com report, author and tax attorney Rebecca Walser reminded investors that what goes up must come down. “Most major crashes occur within a short 2.5-month timeframe, and even Warren Buffett recently warned shareholders that a 50% loss should be expected.

“If someone is 10 years or less from retirement, they need a plan to forgo the large downturn that is coming this time around – they do not have the investment horizon left to recover from such a portfolio loss.”

Geez. One can’t help but wonder when–if– the need for huge bucks to live out our old age will ever stop.

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POCKETBOOK: Week ending April 7, 2018

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Lots of worries over what could happen if Trump starts a trade war. This Op-Ed cartoon is from the Sunday, April 8, 2018, Palm Beach Post.
  • Trading places

Lots of talking heads have lots of things to say about the likelihood of trade wars developing should the mighty US of A decide to let President Trump rule and impose additional tariffs on goods and services from places where tariffs already are in place.

In general, many talking heads agree that there is an imbalance in our trade agreement with China. And many think that getting into a tariff war with that country could be very disruptive and costly to us, as in the average consumer.

What’s important to remember is that no new tariffs have been imposed on any country, anywhere,  yet.

It’s also important to remember that it’s really smart to remember to pick your battles.

 

  • Market Quick Glance

Q: Dear Wise One:

Any perspective investors ought to keep in mind with respect to the markets’ recent volatility?

 
A: Yes.

Right now the stock market is as jumpy as a long-tailed cat in a room full of rockers. And that’s just how it is. Today.

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, April 6, 2018.

 

DJIA -3.18% YTD down more than the previous week’s -2.49%

  • 1 yr Rtn 15.82% down from the previous week’s 16.28%

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 -2.59% YTD down more than last week’s -1.22%

  • 1 yr Rtn 10.48% down from last week’s 11.52%

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 0.17% YTD down from last week’s 2.32%

  • 1yr Rtn 17.62% down from last week’s 19.43%

Nasdaq reached a brand new all-time high on March 13, 2018 of 7,637.27. The previous high was reached on March 9, 2018 of 7,560.81.

 

-Russell 2000 -1.45% YTD down more than last week’s -0.40%

  • 1yr Rtn 10.91% up a tiny bit from last week’s 10.64%

The Russell 2000 reached an all-time high on January 24, of 1,615.52. The previous high was reached on January 16, 2018 of 1,604.02.

 

-Mutual funds

At the close of business on Thursday, April 4, 2018,  the average fund that falls under the broad U.S. Diversified Equity Funds heading had a year-to-date return of +0.32%. That’s up—yes up—from the previous week’s average of -0.37%.

Large-Cap Growth and Small-Cap Growth funds were up on average well over 3% last week. Science & Technology Funds and Global Science & Technology Funds both up at 4.92 and 5.08% respectively.

Latin American Funds, too, were up—averaging almost 6% y-t-d.

The biggest loser fund type of all were Energy MLP, down on average -10.02%.

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.

 

  • ETF returns

 I heard Jack Bogle, Vanguard’s founder, point out that mutual funds have had better returns than exchange-traded funds, ETFs, a point I found worth thinking about. Seems the big push to advertise big time by various ETF brand families is one thing. But, out performing various categories of index funds however, is another.

So, while some consider the ability to buy and sell ETFs throughout the day –as one can do with both stocks and ETFs– is appealing, it isn’t necessariy financially rewarding.

One reason  is that  Bogle thinks ETFs could encourage individuals to trade their holdings more often rather than  holding their investments  for the long term. Doing so, he said makes  it difficult for an investor/trader to outperform the market.

Good point.

Then again, Bogle loves index funds.

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POCKETBOOK: Week ending Feb.9, 2018

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  • Corrections and bears a good thing

As uncomfortable as it can be listening to all the talking heads sound as though the world is coming to an end with respect to the very natural movements of stock prices going down, the truth is—and always has been—stock prices go up and down. Bears and bulls, while the don’t live in the same pen, are typically natural occurrences within the investing arena. So instead of reaching for that second bottle of Jim Beam, get a paper and pencil out and do some math.

Figuring out how your portfolio(s) has weathered this current nearly 10% fall in prices has impacted your wealth is the best thing you can do under these market conditions. In fact, that’s the best thing you can do no matter which animal is roaming Wall Street, the bears or the bulls.

With that in mind, here are three market-related points to ponder:

  • From Goldman Sachs comes this  posted at TheStret.com: “Most equity market corrections recover without developing into bear markets or presaging recessions. Of 16 drawdowns of 10% plus since 1976, only five occurred around a recession. S&P 500 typically declined by 15% during the 11 non-recession corrections.”
  • For the second week in a row, the Merrill Lynch bull-bear indicator is flashing “sell”. This indicator has been correct in predicting 11 out of the 11 U.S. stock market corrections since 2002.
  • To be called a “bear market”, broad market indexes have to fall 20% or more from their peak over a two-month period.

 

  • Market Quick Glance

See-sawing from down a 1000 points to up 500 then down again. Go figure.

Every index followed here is underwater with respect to its year-to-date returns. And that’s the bad news. The good news happens when you take a longer term look. Then you will learn that three of the four indices have just fine double-digit 1-year performance returns. The exception is the Russell 2000.

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, Feb. 9, 2018.

DJIA -2.14% YTD down and in minus territory from last week’s +3.24%  

  • 1 yr Rtn +19.92% down from last week’s 28.34%

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 -2.02% YTD down and in minus territory from last week’s 3.31%

  • 1 yr Rtn +13.51% down from last week’s 21.10%

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 -0.42 YTD down and in minus territory from last week’s 4.89%

  • 1yr Rtn +20.28% down from last week’s 28.47%

Nasdaq latest new all-time high of 7,505.77 was reached on January 26, 2018. The previous high was reached on January 19, 2018 of 7,336.38.

 

-Russell 2000 -3.76%YTD down and in minus territory from last week’s +0.77%

  • 1yr Rtn +7.20% down a pinch from last week’s +13.99%

The Russell 2000 reached an all-time high on January 24, of 1,615.52. The previous high was reached on January 16, 2018 of 1,604.02.

 

-Mutual funds

After up comes down. And then more down.

For the first time this year, the year-to-date average cumulative total reinvested returns for equity funds that fall under the broad U.S. Diversified Equity Funds heading was underwater: On Thursday, Feb. 8, 2018, it stood at -3.40%. had That’s down from the +4.44% posted one week earlier.

Of the 20 different fund types that fall under the umbrella heading of U.S. Diversified Equity Funds, only one had a positive year-to-date return. It was the Dedicated Short Bias Funds of which Lipper tracks 164. The average return for funds under its heading was +3.08%

The broad umbrella headings’ y-t-d performances though 2/8/18 were as follows:

  • U.S. Diversified Equity Funds, -3.40%
  • Sector Equity Funds, -4.82%
  • World Equity Funds, -2.16%
  • Mixed Asset Funds, -2.47%
  • Domestic L-T Fixed Income Funds, 0.93%
  • World Income Funds, 0.22%

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.

 

  • Gold not so golden

Once thought as a safe haven for whatever crapola is going on with stock prices, investing in gold was thought of as a no-brainer. This precious metal has always been pitched as an asset investors ought to commit about 5% of their portfolio to.

The thinking for that suggestion has been— when stock prices fall the price of gold would increase. And the proof was in the past-performance pudding.

From CNBC.com comes this: “During the 2008 crisis when the S&P 500 Index lost 57 percent in market capitalization, gold rose 24 percent. Earlier in the bear market from 2000 to 2002, theS&P lost 49% while gold added nearly 13 percent.”

The performance numbers in that paragraph are good to remember.

Nonetheless, gold prices haven’t behaved as expected and have fallen by about 2% so far this month, according to that same source.
 

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POCKETBOOK: Week ending May 19, 2017

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  • Loving our rides

About 43% of the population has an auto loan. That translates to a record 107 million Americans and up from 80 million in 2012, according to figures from the Federal Reserve Bank of New York.

Of those 107 million, roughly 6 million people are 90 days or more behind on their car payments.

Oh dear. That’s bad news for people who need their vehicles but can’t afford them. And good news for those with the how-in-the-world-can-they-do-that-job Repo Man.

 

  • Market Quick Glance

Although the 1-week and 1-year returns on all of the four indices below show mixed results, what’s staggerily delightful is how these indices have performed over the past year: The DJIA up over 19%; the S&P 500 up over 16%, NASDAQ ahead over 29% and the Russell 2000 up nearly 25%. Those kind of 1-year returns aren’t common—they are exceptional.

Be mindful of that.

Below are the 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, May 19, 2017.

-Indices:

-Dow Jones +5.27% YTD down from last week’s 5.74%

  • 1yr Rtn +19.33% up from last week’s 17.92%

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

 

-S&P 500 +6.38% YTD down from last week’s 6.79%

  • 1yr Rtn +16.75% up from last week’s +15/83%

The S&P 500 reached a new all-time high of 2,405.77o on May 16, 2017. (The previous high of 2403.87 was reached on May 9, 2017. Before that, the previous high of 2,400.98 was reached on March 1, 2017. )

 

-NASDAQ +13.01% YTD down from last week’s +13.71%

  • 1yr Rtn +29.10% down from last week’s 29.21%

The NASDAQ reached another new all-time high for the fourth time this year of 6,170,16 on May 16, 2017. (The previous high of 6,133 was reached on May 9, 2017 and before that 6102.72 reached on May 2, 2017. Before that the new high of 6074.04 was achieved on April 28, 2017 and before that date a high of 5,936.39 hit on April 5, 2017.)

 

–Russell 2000 +0.75% YTD down from last week’s +1.89%

  • 1yr Rtn +24.90% up from last week’s +24.73%

The Russell 2000 reached a new all-time high of 1,425.7 on April 26, 2017.

(Its previous high of 1,414,82 was reached on March 1, 2017.)

 

-Mutual funds

At the close of business on Thursday, May 18, 2017, the average year-to-date performance of U.S Divesifed Equity Funds was +4.77%.

Under that broad umbrella heading it was Large-Cap Growth Funds that lead the way, up 12.68%, followed by Multi-Cap Growth Funds, up 11.41% and then Equity Leverage Funds, up 11.39%.

Under the Sector Funds heading it was Global Science/Technology Funds returning the most with the average fund in it up 20.95%. And under the World Equity Funds heading, India Region Funds continue to reign, up on average 24.56%.

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.

•Keeping up with the Jones’ and the U.S. Census Bureau

According to TheBalance.com, every 10 years the U.S. Census Bureau comes out with figures that measure the average net worth of all of us.The last time the numbers were calculated  was in 2011 and the next one coming is in 2021. Their net worth results take into consideration upon both household income and age. For instance, while the median wealth per household for all households is $68,828, the median wealth of those younger than 35 is only $6,676.Look at other age groups and you’ll find different results. For those aged 55-64, the median wealth jumps to $143,964. And where you’ll find the wealthiest households is for those  in which the age range is 75 or more, it’s $155,714.If you’re puzzled by these figures, and think they seem considerable lower than what you may have heard or read before, keep in mind that the U.S. Census Bureau and the U.S. government don’t count things in the same way. Surprise. Surprise.Why? Because the gov looks at wealth by income while the U.S. Census Bureau by net worth. Using the governments income figures, for the 20 percent of folks whose income falls in the lowest quintile their median net worth is -$6,029. Those in the middle, have an average net worth of $68,828. And those in the top 20 percent have an median net worth of $630,754.So that explains why there is such a huge difference in median net worth figures. And, how close to impossible it is to keep up with the Jones’.
Read the full story, “What Is the Average American Net Worth?”, written by Kimberly Amadeo and updated on May 12, 2017 at www.thebalance.com ,

 

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POCKETBOOK:Week ending Dec.24, 2016

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  • Holiday peace and joy to all

To honor the true spirit of the holiday season, this week’s money-focused POCKETBOOK will be brief. My hope in doing so is to remind everyone that what’s most important in this life is the wealth that lives within your heart and not the material wealth you may have been fortunate enough to have accumulated.

  • Market Quick Glance

Below are the weekly and 1-year performance results for four popular stock indices based on the close of business prices on Friday, Dec. 23, 2016, according to Bloomberg.

-Indices:

-Dow Jones +17.51 YTD up from last week’s 16.96%

  • 1yr Rtn +16.65% down from last week’s 18.99%

 

-S&P 500 +13.17% YTD up from last week’s 12.84%

  • 1yr Rtn +12.27% down from last week’s 15.07%

 

-NASDAQ +10.55%YTD up from last week’s 10.02%

  • 1yr Rtn +9;68% down from last week’s 11.96%

 

-Russell 2000 +22.47%YTD up from last week’s 21.82%

  • 1yr Rtn +20.55% down from last week’s 23.55%

 

-Mutual funds

At the close of business on Thursday, Dec. 22, 2016, the performance of the average U.S. Diversified Equity Fund was 11.53%, off a bit from the previous week’s close of 11.73%, according to Lipper.

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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