Wall Street’s talking heads are never at a loss of words. Or outlooks. Here’s what one bull sees.
Ed Yardeni, president of Yardeni Research thinks that there is still plenty of money to be made in this market, has a S&P 500 index year-end target price of 3100 —that’s 13% above where it stands today—and sees the small-cap rally continuing.
In a recent CNBC.com story, Yardeni said, “Small cap stocks are on fire, at record highs, because they are not as exposed to the global economy in currency and protectionism.”
And, he’s not alone in his small-cap rally thinking.
We shall see.
Market Quick Glance
It’s been a small-cap world for anyone paying attention to the NASDAQ and Russell 2000 indices as each has made some nice strides in a positive direction lately and last week.
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 1, 2018.
–DJIA -0.34% YTD once again back into minus territory from the previous week’s
•1 yr Rtn 16.51% down from the previous week’s 19.61%
- 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 2.28% YTD up from last week’s 1.78%
- 1 yr Rtn 12.53% down a tad from last week’s 12.68%
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 9.43% YTD up a heap from last week’s 7.68%
- 1yr Rtn 20.93% up from last week’s 19.80%
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 7.32% YTD a jump up from last week’s 5.95%
- 1yr Rtn 18.05% down from last week’s 17.60%
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.
Your basic equity fund lost a little ground last week.
The average performance of the funds under the U.S. Diversified Equity Funds heading had a total return of 2.84% year-to-date at the close of business on Thursday, May 31, 2018. That’s lower than it was one week before, (May 26), it was 3.34%.
It’s been a Small-Cap Growth funds’ world lately as the average y-t-d return for them clocked in at 10.75% last Thursday. That’s up from the previous week.
Science & Tech funds with home grown as well as global companies in their portfolios continue to do well, too.
Not so hot have been World Equity Funds—the average one’s return was underwater at -0.86% last week.
World Income Funds have fared worse with the average y-t-d total return of the 750 funds that fall under this heading of -2.57%.
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.
Our poor kids
No matter how great you think last week’s job report was, or how great you think the economy is, if you step back and take an objective view, President Trump’s personal business management style for America has rewarded the wealthy far more than it has the middle, and lower classes.
Philip Alston, a U.N. human rights investigator released a report that he will present to the United Nations Human Rights Council later this month, pointed out that while Trump has cut benefits and health insurance to the poor in America, his reforms have been “financial windfalls” for the mega-rich and large corporations.
Nothing new there. But what I found was of particular importance was how hard hit his policy changes have been for our kids.
Alston said that nearly 41 million people, 12.7 percent, live in poverty in the U.S. Of them 18.5 million live in extreme poverty and one in three kids are poor.
Worse yet, he said that the United States has the highest youth poverty rate among industrialized countries.
That’s nothing to be proud about no matter what figures the Trump Administration boasts about.