Tag Archives: NASDAQ

POCKETBOOK: Week ending April 7, 2018

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Lots of worries over what could happen if Trump starts a trade war. This Op-Ed cartoon is from the Sunday, April 8, 2018, Palm Beach Post.
  • Trading places

Lots of talking heads have lots of things to say about the likelihood of trade wars developing should the mighty US of A decide to let President Trump rule and impose additional tariffs on goods and services from places where tariffs already are in place.

In general, many talking heads agree that there is an imbalance in our trade agreement with China. And many think that getting into a tariff war with that country could be very disruptive and costly to us, as in the average consumer.

What’s important to remember is that no new tariffs have been imposed on any country, anywhere,  yet.

It’s also important to remember that it’s really smart to remember to pick your battles.

 

  • Market Quick Glance

Q: Dear Wise One:

Any perspective investors ought to keep in mind with respect to the markets’ recent volatility?

 
A: Yes.

Right now the stock market is as jumpy as a long-tailed cat in a room full of rockers. And that’s just how it is. Today.

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, April 6, 2018.

 

DJIA -3.18% YTD down more than the previous week’s -2.49%

  • 1 yr Rtn 15.82% down from the previous week’s 16.28%

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 -2.59% YTD down more than last week’s -1.22%

  • 1 yr Rtn 10.48% down from last week’s 11.52%

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 0.17% YTD down from last week’s 2.32%

  • 1yr Rtn 17.62% down from last week’s 19.43%

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 -1.45% YTD down more than last week’s -0.40%

  • 1yr Rtn 10.91% up a tiny bit from last week’s 10.64%

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, April 4, 2018,  the average fund that falls under the broad U.S. Diversified Equity Funds heading had a year-to-date return of +0.32%. That’s up—yes up—from the previous week’s average of -0.37%.

Large-Cap Growth and Small-Cap Growth funds were up on average well over 3% last week. Science & Technology Funds and Global Science & Technology Funds both up at 4.92 and 5.08% respectively.

Latin American Funds, too, were up—averaging almost 6% y-t-d.

The biggest loser fund type of all were Energy MLP, down on average -10.02%.

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.

 

  • ETF returns

 I heard Jack Bogle, Vanguard’s founder, point out that mutual funds have had better returns than exchange-traded funds, ETFs, a point I found worth thinking about. Seems the big push to advertise big time by various ETF brand families is one thing. But, out performing various categories of index funds however, is another.

So, while some consider the ability to buy and sell ETFs throughout the day –as one can do with both stocks and ETFs– is appealing, it isn’t necessariy financially rewarding.

One reason  is that  Bogle thinks ETFs could encourage individuals to trade their holdings more often rather than  holding their investments  for the long term. Doing so, he said makes  it difficult for an investor/trader to outperform the market.

Good point.

Then again, Bogle loves index funds.

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POCKETBOOK:Week ending March 3, 2018

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  • Another bull’s birthday

The bull market is going to be 9 this week. In dog years that would be 63 in human years. Okay okay—I know there’s nothing that really connects bulls with dogs and humans but then again, from a human’s point of view, 63 represents an age of maturity. One, that some figure, is an age worthy of retirement.

A look back at the historic lengths of  bull markets between 1926 through 2017 represented by  S&P 500 Index total returns reveals that a bull market lasts on average  9 years, according to FirstTrust (FTPortfolios.com). That puts this market in  watch-for-bears territory.

The longest bull market ,relating to that same index, lasted 13.9 years (from the 1930s-early 1940s), with an average annualized rate of return of 17.2%.  The shortest, 2.5 years in the early 1970s in which the average annualized gain was 25.3%.

Clearly, this bull market has been running a long time but more importantly,  bulls don’t run forever.

Then again, this same source reveals that S&P500 Index  bear markets have a history of being much shorter in length averaging only 1.4 years.

 

  • Market Quick Glance

Back peddling and who knows for how long.

If, at the beginning of this year, you invested into an S&P 500 index fund or one that tracks the Russell 2000 you’ve lost money. Not so with the Nasdaq.

Who knows what the year-to-date returns will be by the end of this week but here’s a bet worth considering: If Trump continues to be hell-bent on imposing tariffs on the steel and aluminum that the US imports, the market might have a hell-bent time of moving upward.

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 3, 2018.

 

DJIA -0.73% YTD down and back into minus land–the previous week +2.02%  

  • 1 yr Rtn 16.83% down from the previous week’s 22.31%

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 +0.66% YTD significantly down from last week’s 2.76%

  • 1 yr Rtn +12.99% down from last week’s 16.40%

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 +5.13 YTD down from last week’s 6.29%

  • 1yr Rtn +23.83% down from last week’s 27.74%

Nasdaq latest new all-time high of 7,505.77 was reached on January 26, 2018. The previous high was reached on January 19, 2018 of 7,336.38.

 

-Russell 2000 -0.15%YTD down into minus land from last week’s 0.89%

  • 1yr Rtn +9.85% down from last week’s +11.08%

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

Reflecting a not-so-hot week for stocks, the year-to-date average cumulative total reinvested returns for equity funds that fall under the broad U.S. Diversified Equity Funds heading was -0.31% at the close of business on Thursday, March 2, 2018, according to Lipper.

Near the end of 2017, many talking heads were projecting that markets outside of the U.S. were going to be the ones likely to score well this year. That however, hasn’t necessarily been the case. For instance, the year-to-date return for the average World Equity Fund was 0.11% as of Thursday’s close. There are 4,453 funds that fall under that broad heading.

Areas doing well and not-so-well under that heading include: Latin American Funds and China Region Funds, up 6.28% and3.66% respectively, on average. And, on the other hand,  India Region Funds and Global Equity Income Funds were down on average -5.40% and -2.08% respectively.

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.

 

  • Kohl’s and Aldi a match made in heaven?

There’s a maybe unlikely new couple coming to town: Kohl’s, the retailer that sends out so many discount coupons to their credit card holders that you wonder how in the world they make any money—-and Aldi, the German grocer that sells its food stuff and goodies at prices that don’t need any coupons to get shoppers into their stores.

The deal is, Kohl’s has too many stores with too much space in them and has plans to cut the size of its footprints, while Aldi is expected to open 900 new stores over the next five years, according to USA Today.

So,  the idea is to lob off some of existing Kolh’s stores space to make Aldi its next door neighbor.

If you’re a shopper of both, the idea makes sense. If you’re not, it might be time to try shopping at either.

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POCKETBOOK:Week ending Dec.24, 2016

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  • Holiday peace and joy to all

To honor the true spirit of the holiday season, this week’s money-focused POCKETBOOK will be brief. My hope in doing so is to remind everyone that what’s most important in this life is the wealth that lives within your heart and not the material wealth you may have been fortunate enough to have accumulated.

  • Market Quick Glance

Below are the weekly and 1-year performance results for four popular stock indices based on the close of business prices on Friday, Dec. 23, 2016, according to Bloomberg.

-Indices:

-Dow Jones +17.51 YTD up from last week’s 16.96%

  • 1yr Rtn +16.65% down from last week’s 18.99%

 

-S&P 500 +13.17% YTD up from last week’s 12.84%

  • 1yr Rtn +12.27% down from last week’s 15.07%

 

-NASDAQ +10.55%YTD up from last week’s 10.02%

  • 1yr Rtn +9;68% down from last week’s 11.96%

 

-Russell 2000 +22.47%YTD up from last week’s 21.82%

  • 1yr Rtn +20.55% down from last week’s 23.55%

 

-Mutual funds

At the close of business on Thursday, Dec. 22, 2016, the performance of the average U.S. Diversified Equity Fund was 11.53%, off a bit from the previous week’s close of 11.73%, according to Lipper.

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.

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