Tag Archives: got cash?

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.











POCKETBOOK: Week ending June 18, 2016

  • IMG_0204
  • 7 days worth of gun deaths

In only seven short days after the gun massacre at the Pulse nightclub in Orlando, 207 more individuals have died in gun-related deaths, according to CBS News.


  • Market Quick Glance


If you heard a “thud” at the close of business on Friday from Wall Street it was because  the major indices listed below  all closed the week down. Year-to-date gains of the four indices that follow  were stripped of between 1 and 1.5 percent of their returns from the previous week, and, lost roughly 1.5 to 3 percent of their 1-year total returns, according to Bloomberg.

Bottom line: The markets remain on shaky ground for a whole host of good reasons. The primary one? The economy. Then there’s the job thing, the gargantuan disparity in incomes between the corporate haves and worker bee have-nots, the state of economies around the world, war worries, concerns about rising debt levels…shall I continue?

Below are the year-to-date performance figures for the major indices through June 17, 2016, according to Bloomberg. To provide a longer performance perspective, 1-year returns have been added.

-Dow Jones +2.82% YTD

1yr Rtn +0.75%

-S&P 500 +2.42%YTD

1yr Rtn +.34%


1yr Rtn 4.92 %

Russell 2000 +1.47% YTD

1yr Rtn -9.56%


-Mutual funds

Through Thursday, June 16, 2016 the average U.S.Diversified Equity Fund was up less than 1 percent to end the week up 0.82 percent, according to Lipper. That represents a loss of nearly 3 percent in seven days.

Biggest downward spirals went to Equity Leverage Funds. Last week this group had an average y-t-d performance of 13 percent but that has been shaved in half. The average fund under this heading was up 6.57 percent.

Average plus-side returns of over 4 percent were found in Mid-Cap Value Funds (last week their average return was 7.80 percent); Small-Cap Value Funds; and Equity Income Funds.

Under the Sector Funds umbrella, Precious Metals Equity Funds continue to be the top performers. Their average y-t-d return was 83.83 percent at the close of business on Thursday. That’s down 5 percent from the previous week’s close of 88.89 percent.

Visit www.allaboutfunds.com for weekly updates to see how 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.

Lipper’s weekly performance figures for stock and fixed-income funds are at www.allaboutfunds.com in the left column on the home page.

  • Got cash?

No matter what anyone tells you, Cash is King. Always has been. Always will be.

I’ve always been a big proponent of telling my girlfriends—and anyone else who will listen—to keep a stash of cash in a spot that only they know of. And, is quick and easy for them to get their hands on.

My advice is usually met with a furrowed brow and the question, “Aren’t you supposed to keep your money in the bank or invested?”

My response is, “Nope. Not until you’ve already got a hefty stash at hand ready for those who-ever-knew moments.”

How much cash in your stash depends upon your lifestyle, size of family, station in life, etc., etc.

But one ideal rule of thumb would be to have six months worth of living expenses available.

Okay. Okay. I can hear your jaws drop. Most people don’t have enough money to cover a $400 emergency, come up with thousands for moving expenses , an emergency trip to the dentist yet alone the thousands of dollars necessary to build a 6-month sized war chest. But it’s a good goal.

Time flies particularly when money is tight. Or someone losses a job. Or an accident of any sort happens.

On that same Cash is King note, mutual fund and ETF investors have been cashing in on their investments lately.

From Thomson Reuters comes this data report for the week ending June 15, 2016: “Thomson Reuters Lipper’s fund macro-groups (including both mutual funds and exchange-traded funds [ETFs]) suffered net outflows of $19.1 billion for the fund-flows week ended Wednesday, June 15. This number marked the largest overall weekly net outflows since the week ended April 20, when U.S. funds saw over $32 billion leave…. Money market funds (-$13.6 billion) had the largest net outflows, while equity funds (-$3.4 billion) and taxable bond funds (-$3.1 billion) also contributed significantly to the total negative flows…”

Although I can’t tell you where that money is going, I can tell you that there is one fund type that is picking up inflows: municipal bond funds. That makes sense as the tax advantages of muni bond funds is targeted at  higher income individuals. Inflows into them last week totaled $904 million representing “the thirty-seventh consecutive week of net inflows for municipal bond funds” according to that report.

No matter where you stand on the income ladder, do me a favor and build yourself up a nice cash stash. You’ll be glad you did.