Tag Archives: mutual funds around the world

POCKETBOOK: Week ending June 9, 2017

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  • A correction on its way?

 The fine folks at the Bespoke Investment Group have a way of clarifying all things market related using historic facts and figures.

From them comes this bundle of S&P goodies that may or may not help you with your investing goals and expectations:

  • The S&P 500 hasn’t had a 10% correction in the last 16 months.
  • The current rally has lasted 477 calendar days making it the 11th longest run for that index without a 10% correction since 1928.
  • If you think that the S&P 500 is going to continue the rally and hope it becomes one of the longest running rallies around, it needs to run another 173 days.
  • To pull that off, this rally would have to go on past Thanksgiving.

Looks like enthusiastic S&P 500 bulls need to think “turkey trot”.

BTW, Bespoke also reported that when a correction does come along after rallies lasting  10 years or more, the decline has been  15.7% over 142 days. “Compared to all corrections since 1928 where the average decline was 19.5%,…”

 

  • Market Quick Glance

Believe it or not, the S&P 500 and the NASDAQ were both down from their previous week’s close and their 1-year returns were down as well. That means the star performing index turned out to be the Russell 2000—it was up on both scores.

Depending upon which money guru you read or take the advice of, the bull market in equities is getting a little long in the tooth or still has plenty of space to run.

Below are weekly and 1-year 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, June 9, 2017.

 

-DJIA +7.64% YTD up from last week’s +7.30%

  • 1 yr Rtn +18.27% down from last week’s 19.08%

The DJIA reached a new all-time high of 21,305.35 on June 9, 2017. That’s one week after the 21,225.04 high reached on June 2, 2017. (Previous high of 21,169.11 was reached on March 1, 2017.)

 

-S&P 500 +8.62% YTD down from last week’s 8.90%

  • 1yr Rtn +14.95% down from last week’s +16.15%

The S&P 500 reached a new all-time high of 2,446.2 on June 9, 2017. That’s one week after the 2,440.23 reached on June 2, 2017. (Previous highs of 2,418.71 was reached on May 25, 2017; the high of 2,405.77 was reached on May 16, 2017; the high of 2403.87 was reached on May 9, 2017; and the a high of 2,400.98 was reached on March 1, 2017. )

 

 

-NASDAQ +15.32% YTD down from last week’s +17.14%

  • 1yr Rtn +25.19% down from last week’s 26.84%

The NASDAQ reached another new all-time high of 6,341.7 on June 9, 2017. (Some of the other previous highs include: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 +4.76% YTD up from last week’s +3.56%

  • 1yr Rtn +20.36 % upfrom last week’s +20.06%

The Russell 2000 reached a new all-time high of 1,433.789 on June 9, 2017. (Previous high of 1,425.7 was reached on April 26, 2017 and before that a high of 1,414,82 was reached on March 1, 2017.)

 

-Mutual funds

The average U.S. Diversified Equity Fund was up a tad from the previous week. So, at the close of business on Thursday, June 8, 2017 the average equity fund’s year-to-date return was 7.90%. The previous week’s figure was 7.56%.

Once again, the top performance categories under that heading are beginning to sound like a broken record—with one exception: the order has changed. The top performing group was Equity Leverage Funds, up 17.47 ahead of Large-Cap Growth Funds up 17.21% followed by Multi-Cap Growth Funds, up 15.77%

For a second week in a row the average Sector Fund return barely budged and ended the week up 4.79% a hair about the previous week’s close of 4.78%.

It is still a Global Science/Technology Funds world, up 27.58%. And Commodities Energy Funds continued to lose more ground with the average fund -19.37% ( previous week the figure was -16.07%).

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.

 

  • Rate hikes

The Fed is expected to raise rates by 25 basis points—that translates to one-quarter of one percent.

That means life has gotten more expensive for anyone with an adjustable mortgage or home equity line of credit, or who is applying for a new mortgage, car loan or has with credit card debt that isn’t paid off in full each month.

It also means banks will be getting more of your money should you have any of the relationships mentioned above in place.

Unfortunately, an interest rate increase like that won’t mean much for savers who earn interes on their savings accounts.

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