Tag Archives: money

POCKETBOOK Week Ending Nov.24, 2018

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  • Historic sense

Here’s something to think about from  Wall Street journalist and author Jonathan Clements’ weekly news blog, HumbleDollar:The View From Here:

“History suggests that, five years from now, share prices will be no lower than they are today , and 10 years from now they’ll be handsomely higher. But at times like this, history can be scant comfort.”

So true, Jonathan.

But let me add to that: When I was in the broker biz, the historic data showed way back then that any risks to investing in equities were equalized after 20 years.

I like Jonathan’s data better.

One final reminder: No one has ever gone broke taking the profits their stocks had rewarded them with.

 

  • Market Quick Glance

P.U.

If you were looking for good news re the performance of the major indices, the one place you could look is at  1-year returns. With the exception of the Russell 2000, all three others have 1-year returns that closed the week in positive territory.

As for the Thanksgiving week historic returns….forgetabout’em. Turkeys every where on Wall Street.

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 is according to CNBC.com and based on prices at the close of business on Friday, Nov. 23, 2018.

DJIA -1.75% YTD back down in minus-land from the previous week’s return of 2.81%.

  • 1 yr Rtn 3.23% way down from the previous week 8.33%

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 -1,54% YTD way down and in minus-land from last week’s 2.34%

  • 1 yr. Rtn 1.37% way down from last week’s 6.10%

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 0.52% YTD way down from last week’s 4.99%

  • 1yr Rtn 1.04% way down from last week’s 6.69%

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.

 

-Russell 2000 -3.05% YTD down more from last week’s -0.52%

  • 1yr Rtn -1.85%3% down into minus-land from last week’s 2.73%

The Russell 2000 reached a BRAND NEW 52-week ALL-TIME HIGH on August 31, 2018 of 1,742.09. The previous high was reached on August 24, 2018 of 1,726.97.

 

-Mutual funds

A Repeat from last week:

Slip sliding away…..

At the close of business on Thursday, Nov. 15, 2018, the average total return for funds that fall under the U.S. Diversified Equity Funds heading was 0.68%—- way down from the previous week’s figure of 3.33%, according to Lipper.

But, compare that to what the average year-to-date return was for World Equity Funds, down in minus-land almost 10% (-9.96% to be exact) and our home grown based equity fund returns don’t look so bad.

Most deeply hit among World Fund types were India Region Funds, -17.97%, China Region Funds, -15.48%, and Pacific Ex-Japan Funds, -14.85%.

And I remember when earlier this year and about this same time last year, talking heads were expecting world funds to way outperform our US markets. Ooops.

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.

 

  • Warren Buffett likes these dividend-paying stocks

Fans of this old man investor might enjoy learning that Warren Buffett likes dividend- paying stocks—particularly those with respectable dividend yields.

Last week, Investors’ Business Daily, published a piece about five stocks in Buffett’s Berkshire Hathaway’s portfolio. Even though Berkshire Hathaway is down, good guess the prices on some, any or all of these companies may be too but the good news here means their dividend yields could be even sweeter.

The five stocks are:

-Kraft Heinz Stock (KHC), dividend yield 4.8%.

-Store Capital (STOR), dividend yield 4.5%

-General Motors (GM), dividend yield 4.3%

-Teva Pharmaceutical (TEVA), dividend yield 4.3%

-Verizon (VZ), dividend yield 4%.

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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 May 5, 2018

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  • Buffett’s advice

Warren Buffett has some investing advice all of us can learn from—even for those who don’t own any Apple stock—a stock he currently loves.

Three tidbits outlined in a recent CNBC.com story include:

  1. Circle of competence. Basically this means understanding and knowing if the business you are buying is making money and that you feel confident that money-making will be sustainable going forward.
  2. Piece of a business. Buffett was influenced big time by Ben Graham’s classic book “The Intelligent Investor”. Read it.
  3. Margin of safety. Buffett likes value and when looking at purchasing a company  “he wants the value at his entry price to be much lower than his value estimate for the company”. That spread difference is what he calls the “margin of safety”.

Why listen to Buffett’s advice? Guess it’s because from 1965 to 2017, Berkshire Hathaway’s stock’s annual return was 20.9% compared to that of the S&Ps 9.9%.

 

  • Market Quick Glance

The Russell 2000 and NASDAQ were the indices that scored the most on the upside of things last week.

And one more time: It’s been since January when, at that time, new all-time highs were reached on three of the four indices followed below: The DJIA, the S&P 500 and the Russell 2000. NASDAQ hit its last new high in March.

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, May 4, 2018.

DJIA -1.85% YTD down more than the previous week’s -1.65%

  • 1 yr Rtn 15.80% down a hair from the previous week’s 15.87%

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 -0.38% YTD down more than last week’s -0.14%

  • 1 yr Rtn 11.46% down from last week’s 11.77%

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 4.44% YTD up from last week’s 3.13%

  • 1yr Rtn 18.67% up from last week’s 17.70%

Nasdaq reached a brand new all-time high on March 13, 2018 of 7,637.27. The previous high was reached on March 9, 2018 of 7,560.81.

 

-Russell 2000 1.96% YTD up from than last week’s 1.35%

  • 1yr Rtn 12.73% up from last week’s 9.82%

The Russell 2000 reached an all-time high on January 24, of 1,615.52. The previous high was reached on January 16, 2018 of 1,604.02.

 

-Mutual funds

The average fund that falls under the broad U.S. Diversified Equity Funds heading had a year-to-date return of -0.53% at the close of business on Thursday, May 3, 2018, according to Lipper. That’s a fall from the previous week’s 0.65% average.

Small-Cap Growth funds ended the week with an average y-t-d return  of 4.10% —down from the previous week’s 6.27%

Then again, Dedicated Short Bias Funds’ averagre returns had improved and were down only -4.25% instead of -5.43% from the previous week.

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.

 

  • Not running out of money

Well here’s some could be good news for retirees who don’t have $1 million or more bucks saved in their retirement accounts.

According to a Reuters piece by Gail Marks Jarvis, “The myth of outliving your retirement savings”, folks with less than $500,000 in savings on average spend “just about a quarter of it during the first 20 years of retirement.”

That data is from a study by Sudipto Banerjee of the Employee Benefit Research Institute.

Huh. Not sure I believe that but if it’s true, wouldn’t that be nice to know.

 

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