Tag Archives: JPMorgan Chase

POCKETBOOK: Week ending Aug.4, 2018

According to the Bespoke Investment Group,  more than 1,500 stocks have already reported their Q2 earnings. Their chart above shows the percentage of them that have beaten EPS (earnings per share) estimates. Note that percentage has been falling.
  • Good economic news on Wall Street. How’s yours?

There’s no denying the robust economic results heard lately from economists, Wall Street analysts and reporting agencies. Thomson Reuters reported that profits were up 23.5% for S&P 500 companies during the past three months ending with June.

The chart above, from Bespoke, shows the percentage of companies that have beaten earnings estimates from 1999 through the second quarter of 2018.

While things may look good on paper, the paper that’s most important to you is how your investments have performed.

If you haven’t already, please take the time to take a good long honest look at the year-to-date performance of the individual stocks, bonds, mutual funds and ETFs that you own. That includes those in your personal accounts including those included in your IRAs, 401Ks, ROTH accounts and cash in savings accounts.

I’ve always said that the three most important words in the world of personal investing and money management can be summed up in the acronym MOM—or My Own Money.

It’s all that really counts.


  • Market Quick Glance

An upper of a week for all four indices here.

Below are the weekly and 1-year index performance results for the four major indices—DJIA, S&P 500, NASDAQ and the Russell 2000— including the dates each reached new highs. Data if according to CNBC.com and based on prices at the close of business on Friday, Aug.3, 2018.

DJIA 3.01% YTD up from previous week’s return of 2.96%.

  • 1 yr Rtn 15.60% from the previous week’s 16.55 %

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 6.24% YTD up from last week’s 5.43%

  • 1 yr Rtn 14.89%  up from last week’s 14.03%

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 13.16% YTD up from last week’s 12.08%

  • 1yr Rtn 23.21% up from last week’s 21.38%

Nasdaq reached a new 52-week high on July 25, 2081 of 7,933.32. The previous high was reached on July 17, 2018 of 7,867.15.


-Russell 2000 8.98% YTD up from last week’s 8.32%

  • 1yr Rtn 19.08% upfrom last week’s 16.38%

The Russell 2000 reached a new 52-week high on July 10, 2018 of 1,708.56. The previous high was reached on June 20, 2018 of 1,708.1.


-Mutual funds

From the week ending July 26, 2018:

Pick your fund type Pick any sized cap and as long as “large” is in part of it’s name, your investments are doing double-digit well, so far this year.

At the close of business on Thursday, July 26, 2018, the average total return performance for funds that fall under the U.S. Diversified Equity Funds heading was 6.96%, according to Lipper. That’s up from the previous week’s average of was 6.49%..

There are a total of 20 different fund category types included under that broad heading representing 8,404 funds. And, there are now four different categories with double-digit average y-t-d returns. They include: Small-Cap Growth Funds, 16.67%; Large-Cap Growth Funds, 14.17%; Multi-Cap Growth Funds, 12.76%; and Mid-Cap Growth Funds, 12.35%.

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.


  • Heads up on yields

 Fixed-income is a big deal here in America and the easiest way to keep on top of what’s happening in that world is to watch the changes on the 10-year Treasury.

Anyone with an adjustable rate product, such as a mortgage or equity line of credit, understands firsthand that a blip on rates one way or another impacts the amount owed on his or her monthly payment requirement.

So, while the 10-year Treasury yield has been basically in that 2.9-something area for a long while now, 3% isn’t far away. And maybe even 4% is on its way.

Jamie Dimon, CEO of JPMorgan Chase & Co. said last week he thinks the  yield on the 10-year Treasury  ought to be 4 percent, with 5% to follow.

“I think rates should be 4 percent today, “ Dimon is quoted as saying in a recent CNBC.com story. “You better be prepared to deal with 5 percent or higher—it’s a higher probability that most people think.”

Ok Jamie, we hear you.









$13 an hour and financial stress


DSC04796Jamie Dimon received a lot of ink earlier this month when he announced he was giving 18,000 of JPMorgan Chase’s lowest paid employees a bump up in wages. He is moving them from a low of $12 an hour to between$13 and $16.50. Nice gesture. But, still not enough.

If the goal of handing out an hourly wage increase to the lowest paid employees is to move them to a living wage level, $1 an hour increase –or even pay of $16.50 an hour —-doesn’t do it.

Work 40 hours a week for 52 weeks at $13 an hour and someone will have earned $520 a week and $27,040 a year, without deduction, taxes, etc. , according to my orange hand-held calculator. At $16.50 an hour it’s $660 a week, $34,320 a year.

That’s not much of an income for a household of any size.

Dimon, as the CEO of JPMorgan Chase, has an annual income that has grown handsomely over the past few years and now reportedly is $27 million. (That’s a year. Not accumulated over a lifetime.)

Break his 27 million down and divided by 52 equals a weekly pay of $519,230.76. If that week included 40 hours of work, his hourly pay would be about $12,981. So basically, Dimon has to work less than 2.5 hours a day to earn what it takes someone at his bank earning 13 bucks an hour to make in one year.

There is something very wrong when a CEO makes more money in a few hours of work each day than his low-level employees make in an entire 12 months.

From where I sit, Dimon gets no bragging rights for increasing the hourly wage for his bank’s low income wage earners. The bank can afford to pay them much more particularly since his income continues to increase year after year. And, he especially gets no bragging rights for cutting jobs to pay for either.

If he and other execs need a clue as to what constitutes a living wage in America today, it’s about $30 an hour. According to a recent Financial Finesse survey, “mothers with minor children living in households with income below $60,000 a year are the most financially stressed.”

Imagine an America where even  low salaries  afford a living wage. It’s doable. After all, how long  does someone have to make  $20 million or more a year  before they finally have enough?

For most of us it would be one.