Tag Archives: indices up

POCKETBOOK Week Ending March 1, 2019

IMG_6850 Source: Zor Capital
  • 10 years ago

On March 6, 2019, it will be 10 years since the market bottomed that month in 2009. Time sure does fly. And with that flight has come changes to equity prices that few—looking forward back then–would likely  have imagined.

According to CNBC.com, the S&P 500 has delivered an annualized return of 17.8 percent since that March 2009 drop. Who knew? And pretty good, right?

Well, surprise surprise: That is the same kind of 10-years-after annualized returns experienced 10 years after the crash of 1987 and 10 years after the August 1982 bottom.

How about that!

Too bad past performance is no guarantee of what’s to come.

 

  • The high cost of an old life that needs care

I’m getting old and no one is more surprised by that than me. It’s not that I didn’t think I’d age. Nope. It’s just that I didn’t really believe that along with aging would come a reflection in the mirror that always semms to elicit a, “That can’t be me?” response.

And, a cost of living that’s literally staggering—if not impossible to comprehend. As for preparing for that cost. Well, I didn’t think much about that. Or, what  the cost of living into my senior years would be. Or,  imagined that assisted living care would run around 5 grand a month, for god knows how many years.

According to Genworth’s 2018 Beyond Dollars study, the median cost of a private room in a nursing home is $8,365 a month; the median cost of assisted living is $4,600 a month; and the median cost for home health aides is $4,195 a month.

Given that women live longer than men, on average, word is that the average lady will need long-term care services for 3.7 years and the average guy 2.2 years.

Doing the math, let’s just call it 4 years for the ladies at a monthly rate of 5Gs per month and one has to have a long-term care fund with something in the neighborhood of 240,000 bucks in it. Need private room nursing home care and the fee for that  care  comes to more than $400,000.

Got that?

 

  • Market Quick Glance

During the first two months of 2019 indices have reported year-to-date performances that really have been impressive —so far.

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 1, 2019.

DJIA 11.57% YTD down a breathe from the previous week’s 11.59%.

  • 1 yr. Rtn 5.76% up a jump from the previous week 4.28%

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

  • 1 yr. Rtn 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 14.47% YTD up from last week’s 13.45%

  • 1yr Rtn 5.78% up from last week’s 4.40%

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

The move upward continued.

At the close of business on Thursday, Feb. 28, 2019, the year-to-date total return for the average stock fund under the broad U.S. Diversified Equity Fund heading was 12.98%. That’s up a bit from last week’s figure of 12.62%, according to Lipper.

Looking at the fund types with the highest year-to-date gains under the various headings shows the following:

Equity Leveraged Funds continue their march upward with an average return of 24.25%, y-t-d through 2/28/19, and Dedicated Short Bias Funds continue to rake in the poorest performance of -18.14%.

Of all of Lipper’s categories, those really are the best and worst year-to-date figures this year.

The Sector Equity Funds group averaged 11.30% and the World Equity Funds average was 10.12%.

So count yourself fortunate if your funds’ y-t-d performance figures are around 12%. And than, hope that average stays around the same or continues upwards.

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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POCKETBOOK Week Ending Feb.22, 2019

 

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The cost of stuff.

 

 

  • Sage advice

When asked about a 10-year investment horizon, Warren Buffett was asked where he’d plop his money—stocks or bonds?

Buffett’s answer, according to CNBC.com was this: “If I had a choice today for a 10-year purchase of a 10-year bond at whatever it is…or buying the S&P 500 and holding it for 10 years, I’d buy the S&P.”

What do you think?

 

  • Fidelity’s 401(k) balances

Having $100,000, or any six-figure sized 401(k), is a common goal for many who are saving for their retirement. And while it’s noble, truth is many of us are going to a seven-figure coffer to cover us for the 20, 30 or more years of retirement.

Fidelity is home to more than 16.2 million 401(k) accounts. I’m guessing, no two of them with the same account balances.

That said and if you’re curious, at the end of September 2018 the average balance in those accounts was $106,500.

But wait there’s more: We all aren’t average and a better look at the numbers is represented by the median size of those retirement accounts. (The median represents the middle between the high and the low balance.)

In that case, the figure changes precipitously resulting in a median figure amounting to tens of thousands of dollars less than the average figure: The median amount at that time was $24,800.

Feeling better?

 

  • Market Quick Glance

Indices up last week….

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, Feb.22, 2019.

DJIA 11.59% YTD up from the previous week’s 10.96%.

  • 1 yr. Rtn 4.28% up from the previous week 2.71%

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.

 

-NASDAQ 13.45% YTD up from last week’s 12.62%

  • 1yr Rtn 4.40% up from last week’s 2.98%

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

Funds have enjoyed a big jump up from their  January 10 performance figures.

At the close of business on Thursday, Feb. 21, 2019, the year-to-date total return for the average stock fund under the broad U.S. Diversified Equity Fund heading was 12.62%. That’s nearly 3x higher than the average return of 4.70% registered on Jan. 10, 2019, according to Lipper.

Looking at the fund types with the highest year-to-date gains under the various equity headings shows the following:

-The highest total return under the U.S. Diversified Equity Funds umbrella was Equity Leveraged Funds, 23,76%; the lowest, Dedicated Short Bias Funds, -17.8%.

-The Sector Equity Funds group averaged 11.37%; the highest fund type under that category was Commodity Energy Funds, 17.21%; the lowest Alternative Managed Funds, -1.65%.

-World Equity Funds average 9.51%; the fund type with the highest ytd return was Global Small/Mid-Cap Funds, 12.97%; the lowest India Region Funds, -5.07%.

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.

 

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POCKETBOOK Week Ending Jan. 11, 2019

 

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As for the market’s direction, could it be a bear in wedding dress clothing? Time will tell.

 

  • Credit Card Debt

Put aside the fact that America’s national debt has risen by huge leaps and bounds under the current administration, what may or may not surprise you is that personal credit card debt has risen too.

According to TheBalance.com, U.S. consumers now have acquired over $1 trillion in credit card debt. Divide that by the number of households in the country and that breaks down to $5,700 in debt per household.

But wait, there’s more: Look at just the households that already have credit card debt and the average debt for those households is heading for $10,000, ($9.333), according to ValuePenguin.

All of which makes me wonder about how really great is this economy that you hear so much about. Or the fabulous job numbers. Or, the low inflation.

Something does add up.

 

  • Market Quick Glance

For one week there were positive signs of life on Wall Street as all three indices followed here showed some nice one week gains.

Below are the weekly and 1-year index performance results for the four 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, Jan. 11, 2019.

DJIA 2.87% YTD way up from the previous week’s 0.45%.

  • 1 yr. Rtn -6.17% improved from the previous week -6.55%

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 3.57% YTD up from last week’s 1.00%

  • 1 yr. Rtn -6.19% improved from last week’s -7.05%

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 5.07% YTD way up from last week’s 1.56%

  • 1yr Rtn -3.33% improved from last week’s -4.79%

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

Looking up.

At the close of business on Thursday, Jan. 10, 2019, the total return for the average stock fund under the broad U.S. Diversified Equity Fund heading was 4.70%, according to Lipper.

Looking at the fund types with the highest year-to-date gains under the various headings shows the following:

-U.S. Diversified Equity Funds average, 4.70%; highest Equity Leveraged Funds, 11.08%; lowest, Dedicated Short Bias Funds, -8.88%

-Sector Equity Funds average 4.88%; highest Energy MLP Funds, 11.74%; lowest Alternative Managed Funds, -2.20%

-World Equity Funds average 4.07%; highest Latin American Funds, 9.01%; lowest India Region Funds, -1.23%.

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.

 

  • Banking on banks

Turns out, 2018 was a great year for banks if being a great year means that none failed.

CNBC reported “ 2018 was the first year since 2006 and only the third since the Federal Deposit Insurance Corporation (FDIC) was created in 1933 that a calendar year passed without a bank failure, according to Bloomberg.”

FYI, the peak year for failures was 2010 when 157 institutions bellied up. And during the savings and loan crisis, in 1989 there were 534 lenders that failed.

 

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