Tag Archives: Lipper mutual funds

POCKETBOOK: Week ending June 23, 2018

IMG_5016
Passed on a money-related photo this week for something far more important than money.
  • 1% Wealth Money Lessons

 If you’ve got wealth envy, forgetaboutit. No matter where one falls on the how-much-money-do-you-have chart, everybody  has money worries/concerns to some degree or another.

The ultra rich have the “rice-paddy-to-rice-paddy” thing going on—that’s the same as the “from shirtsleeves to shirtsleeves in three generations” concern. Both sayings point out that the delicacy and trickiness of a family keeping and maintaining its wealth through the generations ain’t easy. The paycheck to paycheck folks worry about where the bucks to keep a roof over their heads is going to come from before their next pay-day. And all the folks in the middle have money worries, too.

That said, teaching your kids about money is as important as teaching them to brush their teeth and wash their face every day.

CNBC recently published a piece titled, “What the 1 percent are teaching their children about money”. The story included four money lessons. I modified it to three. All of them are simple and worth talking with and to kids about whether you are a parent, teacher, friend, relative or someone who just likes helping kids. And, rich or just getting by.

They include:

-Have a money message and communicate those money values.

“We’re more than what’s in our bank account,” said Judy Spalthoff, executive director and head of family and philanthropy advisory at UBS. ”If what defines our family is just what’s in our bank account. It’s not productive. We’re sending the wrong message of who we are.”

In other words, I say don’t make a big deal out of teaching your kids how much money/wealth your family has or how little it has. Each of us is a unique individual with talents all our own that count and have value no matter how much money our family has or doesn’t have.

-Put your children to work.

-Give back. Teaching your kids to donate their time and talents to others might just be the most rewarding lesson you’ll ever teach them.

 

  • Market Quick Glance

It’s back to bumpy.

We are almost half way through this year and there isn’t much to crow about when comparing your year-to-date returns to that of the various indices—unless, of course, you’re a NASDAQ or Russell 2000 fan. They’re both up double digits while the  DJIA is underwater.

 

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, June 22, 2018.

DJIA -0.56% YTD underwater and down from the previous week’s return

  • 1 yr Rtn 14.88% up from the previous week’s 14.27%

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 3.047% YTD down from last week’s 3.97%

  • 1 yr Rtn 13.16% down from last week’s 14.27%

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 11.44% YTD down from last week’s 12.21%

  • 1yr Rtn 23.35% down from last week’s 25.63%

Nasdaq reached a BRAND NEW ALL-TIME HIGH on June 20, 2018 of 7,806.6. The previous highs was reached on June 14,2018 of 7,768.6.

 

-Russell 2000 9.77% YTD up from last week’s 9.66%

  • 1yr Rtn 20.01% up from last week’s 19.42%

The Russell 2000 reached a BRAND NEW ALL-TIME HIGH on June 20, 2018 of 1,708.1. The previous high was reached June 12, 2018 of 1,686.37.

 

-Mutual funds

The total return performance of the funds under the U.S. Diversified Equity Funds heading had an average return of 5.04% at the close of business on Thursday, June 21, 2018, according to Lipper. That’s up from the June 7, 2018 average total return of 5.11%.

Yes, it’s still a small cap world and will likely continue to be for the near future with Small-Cap Growth Funds up on average 15.66% followed by Mid-Cap Growth (10.56%) and Multi-Cap Growth Funds (10.55%).

Of the 25 largest funds, based on asset size, the two big winners were the Fidelity Contra Fund, 11.77%, and the American Funds Growth A Fund, 10.52%. Both are large-cap growth funds.

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.

 

  • Banks got money and they’ll spent it on you if….

Seems as though banks are so flush with cash they’re dolling it out for free. Well, kinda sorta.

If you’ve got a few hundred or many hundreds of dollars that you don’t know what to do with, consider investigating the banks that offer cash bonuses for people willing to open a new account with their bank.

But, as with  all money-related things in life, there are a few catches. Which means, ya gotta read the small print and understand the deal before you fall for it.

For instance, there are always terms—such as the amount of money required to open a checking or savings account, the length of time required to qualify for the bonus, etc.

Like I said, you’ve got to research and read the deal before committing to it.

If you don’t, all could be for naught and could wind up costing you.

Oh, and remember:  any bonus money is TAXABLE.

-30-

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertisements

POCKETBOOK: Week ending Feb. 25, 2017

IMG_0204

 

•Winning streak…and investment suggestion

Hard to believe, but last week the DJIA recorded its longest 11th straight record close and its longest winning streak since 1992, according to CNBC.com.

That said, D.H.Taylor of SeekingAlpha.com, wrote on Feb. 24th that the P/E ratio of the DJIA has only been over 25 on two other occasions: In 1929 and 2000. FYI, the P/E ratio for the past 135 years averages 15.

That news says to many that there’s a down coming. Who knows why, how large a decline or for how long it will last but the numbers suggest that there’s a market fall coming.

I’ll guess that the timing of which will be before the end of the year—if not way sooner. (How’s that for a not-sticking-my-neck-out-much prediction.)

Back to more of that said. If you’re wondering how to make a buck investing on Wall Street under whatever conditions, advice from Warren Buffett in his annual newsletter to shareholders might suit you just fine: “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profit, not the clients.”

He added: “Both large and small investors should stick with low-cost index funds.”

 

  • Market Quick Glance

 Still more….

More highs for the major indices as the week ending Feb. 24, 2017 came to a close. The upward year-to-date performance trend was realized in three of the four indices followed here.

Below are the weekly and 52-week performance results— including the dates each has reached its high according to data from CNBC.com. Data is based on prices at the close of business for the week ending Feb. 24, 2017.

-Indices:

-Dow Jones + 5.36% YTD, up from last week’s 4.36%

  • 1yr Rtn +26.31% up from last week’s 25.34%

The DJIA reached a 52-week high of 20,840.7 on Feb. 23, 2017. (Previous all-time high was 20639.87 on Feb. 16, 2017.)

 

-S&P 500 +5.74% YTD up from last week’s 5.02%

  • 1yr Rtn +22.67 % down from last week’s 25.07%

The S&P 500 reached a 52-week high of 2,368.26 on Feb. 23, 2017. (Previous all-time high of 2,351.31 was reached on Feb. 16, 2017.)

 

-NASDAQ +8.59 YTD up from last week’s +8.46%

  • 1yr Rtn +28.68% down a tad from last week’s 28.77%

The Nasdaq reached a 52-week high and its all-time of 5,867.89 on Feb. 21, 2017.

 

–Russell 2000 +2.76 YTD% down from last week’s +3.15%

  • 1yr Rtn +36.44 % down from last week’s +38.44%

The Russell 2000 reached its 52-week high and its all time high of 1,410.04 on Feb.21, 2107.)

 

-Mutual funds

Continuing that upward trend.

The average U.S. Diversified Equity Fund enjoyed another good performance week as at the close of business on Thursday, Feb. 23, 2017, the year-to-date return on funds under this heading was up 4.82%, according to Lipper. That’s up from last week’s average of 4.59%.

The losing group under that big heading continued to be Equity Leverage Funds, down 12.78% on average—last week the average was down 12.37%. Winning group? Again it was Large-Cap Growth Funds, up 7.93%.

Changes under the Sector Equity Funds heading as only three fund types had year-to-date average returns of 10% or greater: Precious Metals Funds, up 18.64% —the week previous they averaged 22.50%; Global Science/Technology Funds, up 10.84% –last week 10.23%; and Commodities Precious Metals Funds, up 10.76%–last week it 10.34%.

Lost out were Commodities Base Metals Funds, up 8.16% that’s down from last week’s average of 10.36%.

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.

 

  • FINRA and love and money

The Financial Industry Regulatory Authority appears to be getting to the heart of things with its new publication about love and money.

Titled, “Love and Money: Talking about Finances With Your Significant Other”, the piece is worth a read reminding folks not to overlook this oh-so and vitally important subject.

Funny how money, like sex, used to be a forbidden subject not so very long ago. Not so today. Don’t know what’s going on with your partner’s finances could spell disaster for all parties concerned.

Get some good discussion tips at FINRA.org.

 

30-

 

 

 

POCKETBOOK: Week ending Nov. 25, 2016

  • Thankful feasts

If you need someone to blame for Thanksgiving falling on a Thursday and the three-day weekend that follows, blame Plymouth’s governor William Bradford. According to History.com, in 1621 Bradford “invited local Indians to join the Pilgrims in a three-day festival held in gratitude for the bounty of the season.”

Three-hundred and twenty-years later President Franklin D. Roosevelt signed a bill establishing the fourth Thursday in November as Thanksgiving Day.

 

  • Market Quick Glance

Oh me oh my. It was a record-breaking holiday week of ups for stock indices. How high can they go? I wish I knew.

Off the top of my head, I can’t recall any talking head who– at the beginning of this year– figured the Dow would be up well over 12% come the end of November. But it is.

The rally some are referring to as the Trump Bump I’d say is more of a reflection of how well our economy is doing—and has been doing—thanks to moves made by the Obama administration.

In case you have forgotten, eight years ago the US was in an economic world of mess. And in case you have forgotten, under President Obama’s time in office the markets, job creation, corporate profits, national security, life in general, etc., have gotten better for millions of Americans including the wealthy and those less financially fortunate.

To assume that same kind of over all prosperity will continue to be the case under a Trump administration would be, well, unrealistic. As the word “assume” shows us, to assume anything makes and “ass” of “u” and “me”.

So, with year’s end not that far off, and market indices at all time highs, the big guess is how the indices will end the year. Or, perform in 2017 under a new administration.

Given the uncertainties, and depending upon your individual situation/circumstances, now might be a good time to consider taking some money off the table. Or not. After all, taking profits and making money is what this game is all about.

Below are the weekly and 1-year performance results for four popular stock indices along with their respective P/E Ratios based on prices at the mid-day close of business on Black Friday, Nov.25, 2016. All, according to Bloomberg.

-Indices:

-Dow Jones +12.66% YTD up from last week’s 10.98%

  • 1yr Rtn +10.48% up from last week’s 8.74%

P/E Ratio 18.23 up from last week’s 17.96

 

-S&P 500 +10.47% YTD up from last week’s 8.87%

  • 1yr Rtn +8.21% up from last week’s 6.74%

P/E Ratio 20.70 up from week’s 20.37

NASDAQ +9.17% YTD up from last week’s 7.58%

  • 1yr Rtn +6.73% up from last week’s 5.66%

P/E Ratio NA

 

Russell 2000 +20.16% YTD up from last week’s 17.33%

  • 1yr Rtn +13.73% up from last week’s 13.66%

P/E Ratio 46.89 off a smidge from last week’s 46.90.

 

-Mutual funds

As market indices soared to new heights, so too did the year-to-day performance of the average U.S. Diversified Equity Fund. At the close of business on Thursday, Nov. 23, 2016, the avenge fund under this broad heading was up 9.67%, according to Lipper. That’s up roughly 130 basis points from the previous week’s close.

Once again it was Small-Cap Value Funds that lead the way, up on average 23.21%. Next in line, once again, were Equity Leverage Funds, up 19.42%.

Shareholders in Dedicated Short Bias Funds lost the most; the average y-t-d performance in this grouping of 172 funds was down 24.06%.

Under the Sector Equity Funds heading, that’s where you’ll find fund types likely to gain or lose the most, the five fund types with the highest year-to-date average returns were the earthly ones and include Precious Metals Equity Funds, 53.01%; Basic Metals Funds, 28.35%; Commodities Base Metals Funds, 25.89 %; Natural Resources Funds, 24.51%; and Energy MLP Funds, 22.26%.

The average World Income Fund was 5.45%.

In the fixed-income world the average YTD performance of General Domestic Taxable FI Funds was 6.35%.

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.

 

  • America and inequality

Turns out, when you step back and look at the whole world, the U.S. is among the most unequal countries on the planet, according to data from the Organization for Economic Co-operation and Development, OECD.

One for instance? Those with incomes in the top 20% earn 8.7 times more than those with incomes that fall in the bottom 20%.

In Iceland, Norway and Denmark, countries with the lowest inequality among developed nations, the top 20% earn about 3.5 times more than the bottom 20%.

-30-

 

 

 

 

 

 

 

 

 

 

 

 

POCKETBOOK: Week ending May 7, 2016

IMG_0204      •How you doin?

According to Transamerica Center for Retirement Studies, the average retirees nest egg  now totals $119,000; for those married, it is $224,000; and for singles, it is $40,000.

  • Market Quick Glance

-Indices:

Here are the year-to-date performance figures for the major indices through May 6, 2016, according to Bloomberg. To provide a longer performance perspective, 1-year returns have been added.

Stocks continued to have another tough week with all indices losing ground this first week of May, dragging their 1-year returns right down with them.

Warren Buffett told his groupies that if interest rates remained at 0 for 50 years the DJIA would hit 100,000. That’s a “Doh!” When fixed-income products yield nothing there is no other place for investors who believe in corporate America to go but to invest in stocks.

-Dow Jones +2.73% YTD

1yr Rtn + 0.04% (last week’s 1-yr return: + 1.21%)

-S&P 500 +1.40% YTD

1yr Rtn -0.67 % (last week’s 1-ry return: +0.10%

NASDAQ -4.94% YTD

1yr Rtn -4.09 (last week’s 1-yr return: -3.35%)

Russell 2000 -1.38 % YTD

1yr Rtn -8.40 % (last week’s 1-year return: -6.57%

-Mutual funds

Through Thursday, May 5, 2016 the average U.S.Diversified Equity Fund lost ground again and ended the first week of May down nearly 1 percent year-to-date, 0.80 to be exact, according to Lipper.

Equity Leveraged Funds, there are 202 of them, lost ground as well although still maintained plus-side returns, up 3.12 percent year-to-date on average. Behind them were Mid-Cap Value Funds up 3.01 percent.

Still rocking under the Sector Equity Funds heading were Precious Metals Funds, up on average 71.62 percent as of Thursday’s close. That’s a couple of percent less than the previous week’s close. Even gold is having a hard time shining in this market.

The average Sector Equity Fund was up 5.10 percent y-t-d. Also down from the previous week.

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.

 •Time to lower your expectations

While there’s no calling the market, there are indications that our US markets, right along with those in the developed nations around the globe, are in a world of economic hurt.

Last month the McKinsey Global Institute published a report “Why investors may need to lower their sights” pointing out past market performances.

They write: “Total returns on equities and bonds in the United States and Western Europe from 1985 to 2014 were significantly higher than the long-term average.”

Using that time frame, their report showed that during that 30-year period, US equities returned on average 7.9 percent—the average for the past 100 years was 6.5 percent. For European equities the 30-year average return was also 7.9 percent but 4.9 percent for the past 100 years.

US government bonds averaged 5 percent for the past 30 years and 1.7 percent over the past 100. And European government bonds averaged 1.6 percent returns over the past 100 years and 5.9 percent during the past 30 years.

Going forward, McKinsey’s report estimates annual returns for equities to be about 1.5 to 4 percent lower than the 30-year average and 3 to 5 percent lower for fixed-income.

Whether their past long-term returns are spot on or not, lowering your expectations for this year is worth doing.

-30-

 

 

POCKETBOOK: Week ending March 26, 2016

IMG_0204

  • It’s a bunny market. Really.

Jim Paulsen, chief market strategist at Wells Capital Management, went on record last week referring to current market conditions as neither bearish nor  bullish but bunny-like. You know, hopping up and down in place.

“Unlike an enthusiastic bull or a scary bear, a bunny market hops about a bit but really doesn’t go anywhere, and bunnies have often dominated the stock market during the latter stages of past economic recoveries,” Paulsen wrote in a letter to his clients.

Okay…

 

  • Market Quick Glance

-Indices:

There were only four trading days last week as the markets were closed on Good Friday.

Below are year-to-date performance figures for the major indices through March 24, 2016, according to Bloomberg. To provide a longer performance perspective, 1-year returns have been added.

Dow Jones +1.22% YTD

1yr Rtn -0.20%

-S&P 500 +0.15% YTD

1yr Rtn +0.92%

NASDAQ -4.34%YTD

1yr Rtn -1.12%

-Russell 2000 -4.66% YTD

1yr Rtn -11.75%

-Mutual funds

Through Thursday, March 24, 2016 the average U.S.Diversified Equity Fund was down 2.03 percent year-to-date, according to Lipper. That’s 50 basis points worse than the previous week’s performance improvement.

Small-Cap Growth Funds were last week’s worst performing category again, down on average 7.93 percent.

Precious Metals Funds lost ground  too but continue to be the high scorer under the Sector Equity Funds heading. They were up on average 38.43 percent y-t-d.

Health and biotech funds are that category’s worst performers. There are 95 Health/Biotechnology Funds that Lipper tracks with an average y-t-d performance of -15.74 percent. The y-t-d average performance of the 42 Global Health/Biotechnology Funds was -12.99 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.

 

  • There’s more junk in today’s corporate debt issuance

While we’ve seen positive upward trends within the housing market, the number of people with jobs  and stock prices have made up for a lot of their losses that were a result of The Great Depression, the ratings on corporate bonds haven’t been as fortunate.

According to CNNMoney.com, since 2012, 75 percent of the companies seeking a rating from S&P on their debt securities have walked away with a single-B rating. That’s only “one notch up form the triple-C, a rating given to companies with a high probability of default.”

Throw that into the mix of all things corporate and debt related and the result is that the average rating on U.S. corporate debt has not seen lows like this in nearly 15 years.

Investors looking for the juicy yields found on lower rated bonds need to look further than a company’s bond yields and into how sound the company actually is before investing.

 

  • Boat lovers have short attention spans

Who hasn’t dreamed about owning a boat—any sized boat from dingy to a sailboat to a yacht? Getting out on the open seas whenever you’d like conjures up all sorts of  magical images.

But even if you can afford the purchase price, upkeep and cost of fuel, here’s the sad reality: Boat owners only spend an average of 10 to 14 days a year on their vessels, according to a study from the Delta Protection Commission, a California-based state organization.

Now that’s sad.

 -30-

POCKETBOOK

IMG_0204
For the week ending Feb. 20, 2016

•Seniors and spousal spending
Turns out, the over 65 crowd can be pretty stingy.
According to a CreditCard.com poll, 24 percent of couples that aged and above said their partner should spend no more than $25 without telling them. Yikes. Ya can’t go far on that. Then again, maybe that’s the point.

•Market Quick Glance
-Indices:
Below are year-to-date performance figures for the major indices through February 19, 2016  according to Bloomberg. To provide a longer performance perspective, 1-year returns have been added.

-Dow Jones -5.47% YTD
1yr Rtn -7.30 %
-S&P 500 -5.85% YTD
1yr Rtn -7.17%
-NASDAQ -9.85%YTD
1yr Rtn -7.96%
-Russell 2000 -10.95% YTD
1yr Rtn -16.85%

-Feeling funky about investing? Re-feel.
In this goo-goo goofy election year when some are saying America is in a horrible fix and in need of big-time repair, if you decide to plug your ears to that kind of chatter  other voices can be heard. Like this one from Jack. A. Ablin, chief investment officer at BMO Private Bank.

In his Current Market Update letter, dated February 17, 2016,  the subject focus was mainly oil but included this: “Despite the campaign trail rhetoric, the fact remains that wages are up 2.5 percent in the last year, gas prices are in the basement and the American fleet goes much farther before requiring a fill-up.  Our “wages-to-miles” metric just broke the previous record of 341 miles “per hour” set in 1999, when a gallon of gas was 90 cents.

 
“American consumer confidence is on the rise with most of the improvement attributed to lower pump prices.  Don’t be surprised if consumer spending data ushers in sunshine this spring.  “

•Investment Ideas
I’m sticking with the dividend paying stock ideas this week just because selecting the right ones for your portfolio can be smart—-widows-and-orphans investment style smart.

In case you’ve neglected dividend paying stocks in the past consider the following:
–    Since 1930, dividends have accounted for an incredible 42% of the S&P 500’s total return.
–    According to a study by Fidelity, S&P 500 dividend-paying stocks perform 50% better in down markets than non-dividend paying stocks.
–    Dividends are tax advantaged. Your dividend income is taxed at a lower rate—20%—than capital gains.
–    The S&P 500 dividend yield is higher than that of the 10-year U.S Treasury.

That’s all according to Louis Navellier’s Market 360 letter. And yes, he does manage  a Dividend Growth Fund (along with a number of other funds) and  I’m not trying to sell you. I’m just sayin…Navellier is an old-hand at investing, has a well-established reputation and you might want to check his group out when  researching funds and investigating investment managers who have been around for decades.

-Mutual funds
Through Thursday, February 18, 2016  the average U.S.Diversified Equity fund was down 7.82 percent, year-to-date, according to Lipper.

Of the General Equity Funds, Dedicated Short Bias funds have performed the best so far this year, up on average 10.95 percent. And Diversified Leveraged funds, the worst, down 14.74 percent, on average.

Not surprising,  Precious Metal Funds were top performers under the World Equity Funds heading—up on average almost 30 percent (29.66 percent)

Visit http://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 http://www.allaboutfunds.com in the left column on the home page.

-Wealth and the working
Two points to ponder gleaned from Princor’s Weekly Market Review:
-“The 20 wealthiest Americans (worth a combined $732 billion) own more wealth than the bottom 50% of the U.S. population.”
(Source: Institute for Policy Studies).
-“There are 151 million American workers today. There are 775 million Chinese workers today.
(Source: Department of Labor).

-30-