Tag Archives: love and money

POCKETBOOK: Week ending Feb. 25, 2017



•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.


-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.







The love and money mix


Dear Dian,

I’m retired with a very nice pension and have fallen in love with a man who doesn’t have any savings at all.  He lives on a reverse mortgage.  He tells me he would never touch my finances, but what if we marry and he has health issues and I need to pay for him?  Please advise.

Concerned Cathy

Dear Concerned,
Oh my dear, one thing that living a longish life has taught me is that love and money mix like oil and water. That’s not to say I’m not a fan of love. Or money. But it is to say that love and money are two entirely different subjects that charge our emotions in totally different ways. One can put you on a beyond belief high while the other on a ride beyond belief.

The reason  love and money don’t mix is pretty much the same as why oil and water don’t. While the latter are both liquids, they have different masses and densities.  Love and money have different masses and densities, too

I’m going to make an assumption here and guess that this is a relatively new relationship and that you’re still in the  infatuation phase of it. If that’s the case, this zingy I-can’t-believe-this-is-happening-to-me phase typically lasts six to 18 months. Don’t forget that.

Whether you are 16 or 66, it’s the get-to-know you period when the more time you spend together the more you will learn about one another and see how each manages their life. It’s also the  time in which you’ll  pretty much decide whether or not you like the person, as well as, feel love for them.

Plus, it’s the time when you will see first-hand how each of you handles money.

From your email it’s clear that the object of your current affections has little bread and  that isn’t pleasing to you. How he funds his life or how much money he does or does not have is a subject that needs to addressed head on if the two of you are to have a long-lasting relationship.

And don’t forget, while you have issues about his money world, he probably has  some regarding yours.

In an online story,  Dr. Sonya Britt, director of personal financial planning at Kansas State University, stated that the top predictors of divorce are arguments over money. “It’s not children, sex, in-laws or anything else. It’s money — for both men and women.”

So don’t chuck your money concerns under the rug and pretend they aren’t important. Or that things will work out on their own. They won’t.  As un-Cupid-like as this may sound, feelings of love may come and go, but money remains a constant each of us needs throughout our entire lives.

If you decide that you like your guy enough to want to spend the rest of your life with, the two of you need to spend a whole lot of time together talking about money. Talks that need to include how each of you feel about money; how much each of you has; decisions about wills, trusts and how much the kids are going to get; where  you will live; who is going to pay the monthly bills, will they be shared or not; who pays the vet bills; what’s going to happen when your kids or parents needs financial help; how will what you brought to the marriage be dealt with; and what about inheritances, etc. etc. etc.

When it comes to money talks, the subjects can be endless and touchy. Nonetheless, all have to be addressed.

Hope you have those talks. Sharing a life with someone can be a terrifically wonderful thing. Living alone can be too.