Tag Archives: no guarantees

POCKETBOOK: Week ending June 9, 2018

Telling lines.
  • Fickle trickle

Funny how the average guy and gal have to use a magnifying glass to see the effect of Trump’s trickle down economic policies in their day-to-day lives.

Yes, businesses are expanding, the unemployment rate is down and the stock market has yet to stumble and fall. But unless you’re in the top 10 percent of wage earners, odds are your salary hasn’t increased much over the past couple of years.

Wealth equality in the U.S. is and has been a rising problem for decades. Statistica.com reported that in 2017, the lower-income 50 percent of the population owned about 1.1% of total wealth while that sliver of the top 1% owned 35% of it.

That spread doesn’t bode well for the majority of Americans who hope and believe that their hard work will come with huge financial rewards for them and their families in the coming years. But while hard work is a virtue in itself, it comes with no guarantees of everyone becoming a multi-millionaire.

That said, every working person can build a nest egg. How big that nest egg grows to depends more on goal-setting, focus and perseverance than it does most everything else—including market conditions and government policies.


  • Market Quick Glance

Last week, NASDAQ made the greatest gains, now up over 10% for the year, behind it was the Russell 2000 with a year-to-date return of nearly 9%.

So it continues to be a kinda sorta small-cap world.

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, June 8, 2018.

DJIA 2.42% YTD  up again and a lot from the previous minus week’s close of -0.34%

  • 1 yr Rtn 19.52% down from the previous week’s 16.51%

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 3.94% YTD up from last week’s 2.28%

  • 1 yr Rtn 14.19% up from last week’s 12.53%

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 10.75% YTD up from last week’s 9.43%

  • 1yr Rtn 20.94% up a hair from last week’s 20.93%

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 8.92% YTD up from last week’s 7.32%

  • 1yr Rtn 18.15% up from last week’s 18.05%

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

Following the indices returns, the total return performance of the funds under the U.S. Diversified Equity Funds heading enjoyed an improved average y-t-d return–it was  5.11% at the close of business on Thursday, June 7, 2018, according to Lipper. That’s up a lot from the previous week’s average total return of 2.84%.

In the big time skids arena this year are Latin American Funds. Of the 33 that Lipper tracks, the y-t-d average total return was underwater at -12.00%.

Another of the  World Equity Funds that haven’t fared well so far this year was India Funds, -7.50%. And in third underwater place Emerging Markets Funds, -1.38%.

Overall, World Equity Funds are up 0.90%.

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.


  • Recession ahead? Yes. Sometime.

Lots of chatting about an upcoming recession. Comedian and political commentator Bill Maher even put his two cents worth in the other night with respect to it.

Not in favor of his words. Then again, his point is well taken as American voters have a historic tendency to vote with respect to how fat their pocketbooks are. So a recession happening prior to voting time could have a big impact in taking Trump out of office.

That said, recessions happen. They are a natural part of our economic world. Always have been. Always will be.

That means, it should come as no surprise at all to read that economists at the National Association of Business Economics are foreseeing a recession beginning next year or in early 2020.

And why do they think that? Well, after a steaming economy and a bull market running something like 9,10,11 years or so means it’s a sooner-or-later, for sure, natural event that’s gonna happen. Sometime.