Tag Archives: Nasdaq making records

POCKETBOOK: Week ending March 17, 2018

  • IMG_1801
  • Ever hear of “crowding out”? Time to learn about it.

Trump’s tax cuts may have made million- and billionaires happy, even some workerbees may think it’s a terrific deal, but in reality the move will prove to be hugely costly to most Americans.

Why? Because somebody has to pay for those cuts.

A recent New York Times story reported that one of the results of the tax cuts is that in this fiscal year, the Treasury Department will likely  have to borrow $955 billion from investors. That’s a lot and big increase from last year.

If you’re a believer in debt, and think doing business as a big debtor is a great deal— as President Trump does, did, and has throughout this real estate business deals– a government that continues to accumulate debt isn’t an efficiently run government. Or, one anyone can or should be proud of. And is a vulnerable government.

Bottom line here is that as our debt grows so does our responsibility to pay it. Meaning, interest rates have to go up to cover those debt costs, and, it becomes more expensive for a company or an individual to borrow money translating to life costing more for everyone.

“Crowding out”, according to that same article is when “large-scale government borrowing sucks up the supply of available capital, driving up financing costs for just about everyone else.


  • Market Quick Glance

Once again the numbers tell their weekly story of what goes up can come down.

It was Nasdaq where the weekly numbers showed best as it moved upward while the three other indices fell.

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, March 16, 2018.

DJIA 0.92% YTD down a hunk from the previous week’s 2.49%

  • 1 yr Rtn 19.16% down from the previous week’s 21.21%

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 2.93% YTD down a hunk from last week’s 4.22%

  • 1 yr Rtn 15.56 % down from last week’s 17.83%

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 8.38% YTD up from last week’s 5.13%

  • 1yr Rtn 26.80% down from last week’s 28.99%

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 3.29% YTD down from last week’s 4.01%

  • 1yr Rtn 14.43% down from last week’s 16.98%


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

At the close of business on Thursday, March 15, 2018 the average fund that falls under the broad U.S. Diversified Equity Funds heading had a year-to-date return of 2.70%. That’s up from the previous week’s average return of 0.57%.

Once again, Large-Cap Growth Funds lead this pack’s performance with an average year-to-date return of 8.19% —one week before that figure was 5.50%.

Behind it came Multi-Cap Growth Funds at 7.54% (the week before it was 4.49%). Then, a switch up from last week’s Mid-Cap Growth Funds, 6.18%, to Small-Cap Growth Funds at 6.38%.

Under the Sector Equity Funds heading Science & Technology Funds and Global Science/Technology Funds lead the way with average returns in each category of over 12%, year-to-date.

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.

  • CDs are looking kinda sorta good

Over the past few weeks ads in my local paper have been advertising CD rates of 2% and higher. That’s enough of a jump from the 1.10% kinds of returns to make short-term fixed income investors take notice. Particularly when the stock market is in its ninth year of a bull market and volatility is enough to cause one’s blood pressure to rise during daily and weekly market sessions.

Before biting, however, make sure to read the small print. For example, a recent ad from FCB, Florida Community Bank, offered a 2.15% APY, good through March 30,2018. To take advantage of it you’ve got to have $10,000 in “new funds” and be willing to lock those 10 Gs for 19 months.

Another ad from First Republic Bank offered a 20-month CD at the rate of 2.00%APY for a “limited time” with a minimum investment of $10,000.

Seeing yields in the 2’s is nice. But if you’re someone who thinks about annual returns, as in 12-months, make sure to read the small print in these offerings because you’d be locking up your money for at least 19 months. That’s more than a year and a half and makes the reality of these advertised 2% returns a bit of a tease.

As always, investor beware, read the small print and realize that rates could be going up before you know it.








POCKETBOOK:Week ending Aug.19,2016

  • IMG_0204Class distinctions

How much the top 1%ers are really worth is difficult to nail down. Depending up the source, time frame considered and what you’re counting—family wealth or income—the figures change. Nonetheless, that very tiny elite sliver of our society known as the 1%ers owns pretty much everything. Like an abundance of shares of stock, megamillion dollar homes, super yachts, watches worth what most of us would consider a comfortable retirement nest egg etc., etc.

With so much focus on them you’d think the other 99% of us were chopped liver. (If “chopped liver” is too politically incorrect for your taste, think “worthless” instead.) But we are not. Without us this nation wouldn’t be worth nearly what it is today.

Sticking only to dollar values—and not to what’s inside our hearts where our true and real wealth lies— below is a look at the incomes levels of the various income classes in America based on 2014 income levels from the Urban Institute, according to CNN Money.com:

-Rich, incomes, $350,000+

-Upper Middle, $100,000 to $350,000

-Middle, $50,000 to$100,000

-Lower Middle, $30,000 to $50,000

-Poor, <$30,000


  • Market Quick Glance

Funny thing about the indices: Sure, the year-to-date performances over the past week was good, although not much improved from the previous week. But it was the 1-year total returns when all four indices really shined. Make sure to check them out.

Below are the closing YTD performance numbers of four popular US indices as of Friday, August 19, 2016, according to Bloomberg. One-year performance figures are also included.


-Dow Jones +8.45% YTD

  • 1yr Rtn +15.77 ( A BIG increase here from last week’s +9.14%)

-S&P 500 + 8.39% YTD

  • 1yr Rtn +13.27 (Also a big jump up from last week +6.75%)


  • 1yr Rtn +12.98(Yuge increase from +4.92%)

Russell 2000 +9.90 % YTD

  • 1yr Rtn +8.56 (A sweet jump up from last week’s number of +3.59%)

Here’s a little bit of performance trivia from the Bespoke Investment Group about Nasdaq: “Since the two-day 6.5% decline following the Brexit vote in late June, the Nasdaq has gone 37 trading days now without posting back to back daily declines.  In the Nasdaq’s history dating back to 1971, there have only been seven other periods where the Nasdaq went longer than 35 trading days without back to back declines and the current streak of 37 ranks as the longest since December 2004!  If the Nasdaq can go three more trading days without a two-day losing streak, it will be the longest streak since 1978!”

Bespoke published that on August 18. So we shall see….

-Mutual funds

At the close of business on Thursday, August 18, 2016, U.S.Diversified Equity Funds ended the week up a bit with the average YTD performance of +6.56% for the 8,429 funds under this heading, according to Lipper.

Here’s a look at the YTD average total return for various umbrella fund headings along with the number of funds included under each of Lipper’s headings:

-Sector Equity Funds up 14.40% (2,294 funds)

-World Income Funds up 11.18% (807 funds)

-World Equity Funds (4,445 funds)

-Mixed Asset Funds up 6.23% (5,782 funds)

-Domestic Long-Term Fixed Income Funds up 6.10% (4,027)

Wondering how best to use Lipper’s fund performance figures? Use their ytd returns as a guideline for how your individual fund(s) are performing. For instance, the average stock fund is up about 6.5 percent so far this year.

That’s pretty good especially when you compare it to the barely above 0% returns on your bank’s money market fund.

Visit www.allaboutfunds.com for weekly updates to see 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.

Lipper’s weekly performance figures for stock and fixed-income funds are at www.allaboutfunds.com in the left column on the home page.

  • Presidents and job creation

Without jobs Americans suffer and so does our nation.

But there’s more to building a strong economy than jobs. Our national debts, recessions, depressions etc., all play a part

TheBalance.com recently ran an interesting article titled “Which President Created the Most Jobs?”. Not only does it address the number of jobs our presidents have created, it includes tidbits such as the debt the jobs created along with other economic and historical data.

Back to the presidents, here’s a look at our presidents, the years they were in office and the number of jobs each created:

-Bill Clinton (1993-2000) created the most number of jobs, 21.5 million jobs.

-Ronald Reagan (1981-1989) 15.9 million jobs.

-Lyndon B. Johnson (1963-1968) added 11.9 million jobs.

-Jimmy Carter added 10.5 million jobs

-Franklin Roosevelt (1933-1944) created 10.3 million jobs.

-Barack Obama (2009-2016) at the end of 2015 had created 8.3 million jobs. A somewhat skewed picture as it does not include his entire presidency or that 8.7 million jobs were lost due to the 2008 Financial Crisis.

-Richard Nixon (1969-1974) added 8.8 million jobs.

-Harry Truman (1944-1952), 8.3 million jobs.

-Dwight D. Eisenhower (1953-1960), 3.6 million jobs.

-John F. Kennedy (1961-1963), 3.6 million jobs.

-George H.W. Bush (1989-1992) added 2.6 million jobs.

-George W. Bush (2001-2008) added 2.1 million jobs. He also lost the most jobs– “ 3.6 million between January and December 2008.

-Gerald Ford (1976-1979) added 2.4 million jobs.

There is much more to this story  that’s  worth a read. You will find the entire piece at: