Tag Archives: Edith Ann

POCKETBOOK: Week ending May 18, 2018


  • 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.