Tag Archives: Millennials

POCKETBOOK: Week ending July 14, 2018

Here

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And from the recent running of the bulls comes this: a fake bull. Kinda sorta made me wonder about our market.

 

  • Millennial Yikes!

There’s a different world coming if you’re a believer in survey results

According to a recent 2018 Retirement Preparedness Survey commissioned by PGIM Investments, 31% of millennials aren’t saving for retirement at all BECAUSE they don’t see the point in preparing for it. They responded that “anything can happen between now and then.”

Well, that’s true. But, anything– whatever is meant by it– takes money. And heaps of it–particularly during the decades spent in retirement.

Additionally, 62% of those responding said they plan on retiring when they have enough money (wonder where they expect to get it?) and 66% said that they think full-time jobs would be kaput and that 75% of the public would work as freelancers in the future. And one more thing,  that “people will no longer retire comfortably in the future.”

Oh my.

 

  • Market Quick Glance

More ups over the short term, but not so for 1-year return figures.

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, July 13, 2018.

DJIA 1.21% YTD back up into positive territory re previous week’s return of –1.06%.

  • 1 yr Rtn 16.08% up from the previous week’s 14.71 %

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 4.78% YTD up from last week’s 3.22%

  • 1 yr Rtn 14.44% down a hair from last week’s 14.53%

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 13.36% YTD a jump up from last week’s 11.37%

  • 1yr Rtn 24.73% down from last week’s 26.26%

Nasdaq reached a new 52-week high on July 13, 2018 of 7,843.53. The previous high was reached on June 20, 2018 of 7,806.6.

-Russell 2000 9.87% YTD down from last week’s 10.74%

  • 1yr Rtn 18.34% down from last week’s 20.93%

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

A repeat.

At the close of business on Thursday, July 5, 2018, the total return performance of the funds under the U.S. Diversified Equity Funds heading had an average return of 4.35%, according to Lipper.

Nonetheless, it’s first still a small cap world as the average cumulative total return for Small-Cap Growth Funds averaged 14.34%.

The category of funds with the closest average y-t-d- return was–surprise surprise–Large Cap  Growth funds at 9.73%.

Double digit y-t-d average returns were also found under the Sector Funds heading with Science & Tech Funds, 12.04%, followed by Global Science/ Tech Funds, 11.64% and then Health/Tech Funds, 10.43%.

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.

  • The cost of trade wars

So far, estimates are that this just beginning trade war is going to cost households about $60 more bucks a year. Another source estimates that figure to be more than double–$127 per household.

I’m guessing it’s going to be considerably more. Time will tell.

Till then, consider this from the blog of money manager Doug Kass:

“History has proven that one trade tariff begets another and another until you get a full blown trade war. And the consumer seems to always get screwed. Currency wars always lead to trade wars and vice versa and which in turn could lead to hot war. ”

Kass says that trade wars aren’t supposed to be easy.

I’ll add, not cheap either.

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POCKETBOOK: Week ending Sept. 8, 2017

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    Hurricane preparation Florida style.  (Source Bruce R. Bennett/Palm Beach Post)
  • Hurricanes and me

Hurricane David. Remember him? Deadly. Cat 5. Hit West Palm Beach, Fl. as a Cat 2. Year: 1979.

David was my first. Very scary for someone from Minnesota who knew nothing about hurricanes. Today, barely anyone remembers his name. But ask me and I’ll tell you that you always remember your first.

Back then the preparation drill was to masking tape your windows, head to the liquor store and hit Kentucky Fried Chicken for supplies and nourishment.

Today, it’s make sure you’ve got water, food and have enough meds for me and the dog.

For everyone likely to experience any hurricane, including Florida’s approaching Hurricane Irma, take care, stay calm and know, as with everything else in the universe, this too shall pass.

Some hurricane trivia: While September has historically been a not-so-hot one for the stock market, it’s been a rip-roaring one for hurricanes.

According to NOAA’s Hurricane Research Division, from 1851 through 2015 within the United States there have been a total of 107 hurricanes during the month of September. That’s makes it the #1 month for U.S. hurricanes. Second in line is August with a total of 78 followed by October with 54.

 

  • Market Quick Glance

One downer of a week for all four of the indices below in both year-to-date and 1-yr performance returns.

It would be great if there were one of those great big sponge  fingers that you could hold up and use to point to a specific incident that caused equities to close lower but the political climate has been as unpredictable and goofy as the weather. So no help there.

Bottom line: Who knows what next week will bring.

Below are the weekly and 1-year index performance results— including the dates each reached new highs— according to data from CNBC.com. Data is based on prices at the close of business for the week ending on Friday, Sept 8, 2017.

-DJIA +10.30 YTD down from last week’s 11.26%.

  • 1 yr Rtn +17.95% down from last week’s 19.37%

 

The DJIA reached its most recent all-time high on August 8, 2017 of 22,179.11

(Most recent highs include: August 4, 2017 of 22,092.81; 21,841.18 on July 28, 2017; July 14, 2017 of 21,681.53; July 3,2017 of 21,562.75; 21,535.03 on June 20, 2017; 21,391.97 reached on June 14, 2017; 21,305.35 on June 9, 2017; 21,225.04 on June 2, 2017; and 21,169.11 on March 1, 2017.)

 

-S&P 500 +9.94 % YTD down from last week’s 10.62%.

  • 1yr Rtn +12.84% down from last week’s +14.08%

The S&P 500 reached its most recent all-time high on August 8, 2017 of 2,490.87.

(Previous high of 2,484.04 was reached on July 27, 2017 and 2,477.62 was reached on July 20, 2017. Prior to that date new highs and dates include: 2,463.54 on July 14, 2017; 2453.82 on June 19,2017; 2,446.2 reached on June 9, 2017; 2,440.23 reached on June 2, 2017; 2,418.71 reached on May 25, 2017; 2,405.77 reached on May 16, 2017; 2403.87 on May 9, 2017; 2,400.98 reached on March 1, 2017.)

 

-NASDAQ +18.15% YTD down from last week’s +18.55%.

  • 1yr Rtn +23.11% down from last week’s 23.11%

The Nasdaq reached its most recent all-time high of 6,460.84 on July 27, 2017.

(Previous highs include: July 20, 2017 of 6,398.26; 6,341.7 on June 9, 2017; 6,308.76 on June 2; 6,217.34 reached on May 25; 6,170,16 on May 16; 6,133 on May 9, 2017; 6102.72 on May 2, 2017; 6074.04 on April 28, 2017; and 5,936.39 on April 5, 2017.)

 

-Russell 2000 +4.16% YTD down from from last week’s +4.16%.

  • 1yr Rtn +11.21% down from last week’s +14.02%

The Russell 2000 reached its latest all-time high on July 25, 2017 of 1,452.09.

(Previous highs include: 1,452.05 on July 21, 2017; 1,433.789 on June 9, 2017; 1,425.7 reached on April 26, 2017 and of 1,414,82 reached on March 1, 2017.)

 

-Mutual funds

The year-to-date cumulative total reinvested returns for U.S. Diversified Equity Funds closed at 8.60% on Thursday, September 7, 2017. That’s down from the previous week’s figure of 9.04%.

Sector Equity Funds have seen some top performances as Global Science/Technology Funds were up on average 32.01%. They were followed by Science & Technology Funds, up 26.90% and Commodities Base Metals Funds, up 23.85%.

Those performance figures make it a tight race for rewards when compared to World Equity Funds. Funds under that broad heading continue to climb and ended last week at 21.20%–that’s ahead of their previous week’s Thursday close of 20.41%.

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.

 

  • ETFs

People love their ETFs with one group especially taking to them.

Charles Schwab & Co’s lastest ETF Investor Study revealed that investors on average have 27% of their portfolio invested in ETFs—that’s up from 16% in 2012.

As for who is buying, it’s the Millennials with 56% saying it’s their go-to investment. For Boomers, on the other hand, it’s 30%.

 

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