POCKETBOOK: Week ending July 7, 2018

 

(Source: SeekingAlpha.com)

• Making money in stocks? Where?

 No denying that lots of folks say that they are loving the economy believing in the super job growth and the sweet returns of the stock market. But before jumping on that  bandwagon, remember most of the praise comes from our president and those he has hired to praise him and praise all things Trump-related.

A look at the chart above, included in a recent SeekingAlpha.com article, shows how various types of stocks have fallen from their highs during the past 52 weeks.

Commentary in that same story pointed out that the telecom services sector stocks are down an average of nearly 19% from their highs and consumer discretionary stocks down 16%.

So how you doin?

 

• Market Quick Glance

The DJIA was the only index that had a lower year-to-date return last week than it had the previous 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, July 7, 2018.

–DJIA -1.06% YTD down even more than the previous week’s return of -056%

•1 yr Rtn 14.71% down from the previous week’s 14.88%

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 3.22% YTD  up from last week’s 1.67%

•1 yr Rtn 14.53% up from last week’s 12.34%

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 11.37% YTD up a lot from last week’s 8.79%

• 1yr Rtn 26.26% way up from last week’s 22.23%

Nasdaq reached a BRAND NEW ALL-TIME HIGH on June 20, 2018 of 7,806.6. The previous highs was reached on June 14,2018 of 7,768.6.

-Russell 2000 10.74% YTD up a heap from last week’s 7.00%

• 1yr Rtn 20.93% up a lot from last week’s 16.02%

The Russell 2000 reached a BRAND NEW ALL-TIME HIGH on June 20, 2018 of 1,708.1. The previous high was reached June 12, 2018 of 1,686.37.

 

-Mutual funds

Changes abound with some not exactly hot returns lately for your basic mutual fund. At the close of business on Thursday, July 5, 2018, the total return performance of the funds under the U.S. Diversified Equity Funds heading had an average return of 4.35%, according to Lipper.

Nonetheless, it’s  still a small cap world as the average cumulative total return for Small-Cap Growth Funds averaged 14.34%.

The category of funds with the closest average y-t-d- return behind it was–surprize surprize—Lare-Cap Growth funds at 9.73%.

Double digit y-t-d average returns were also found under the Sector Funds heading with Science & Tech Funds, 12.04%, followed by Global Science/ Tech Funds, 11.64% and then Health/Tech Funds, 10.43%.

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.

 

• More of US not working

 Numbers show that not nearly as many of us are working today as there were 10 years ago.

MyBudget360.com reported that one-third of our work force—or 95.5 million Americans– are not working today. That’s a big jump up from the 80 million not working in 2009.

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POCKETBOOK: Week ending Jan. 12, 2018

 

Thank You, Dr.King.

 

• A Rich Market

No two ways about it, last week stock prices continued on their upward tear.

With that fact behind us, consider the following SeekingAlpha.com piece from Victor Dergunov of Albright Investment Group:

• U.S stocks are quite expensive relative to most other countries by historical standards.
• The S&P 500s Shiller P/E ratio is about 34, more than double its median ratio of 16 and has only been higher one time in history—at the height of the dotcom boom.
• The price-to-sales ratio for the S&P 500 is at an all-time high, 2.35—the media is 1.44 “suggesting that stock prices are rising relative to revenue growth faster than at any other time throughout history.”

We all know stock prices, indices, charts don’t always go up and that that upward trend will turn south sometime. But until it does, do enjoy the ride.

 

• Market Quick Glance

And it was another extremely rewarding week for equities. Of the four indices followed here, all reached new highs—each gaining roughly 2 percent! That’s a remarkable start for any year.

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, Jan. 12, 2018.

–DJIA +4.39% YTD up lots from last week’s 2.33%

• 1 yr Rtn +29.72% up from last week’s 27.12%

A new high for the DJIA was reached on January 12, 2018 of 25,810.43. Its previous high was reached one week earlier, on January 5, 2018 of 25,299.79.

 

-S&P 500 +4.21% YTD up lots from last week’s 2.60%

• 1 yr Rtn +22.72% up from last week’s 20.92%

A new high for theS&P 500 Index was reached on January 12, 2018 of 2,787.85. Its previous high was reached one week earlier on January 5, 2018 of 2,743.45.

 

-NASDAQ +5.18 YTD up a heap from last week’s 3.38%

• 1yr Rtn +30.89% up a pinch from last week’s 30.04%

Nasdaq its second new high of this year on January 12, 2018 of 7,265.26. Its previous new high was reached on January 5, 2018 of 7,137.04.

 

-Russell 2000 +3.68%YTD up lots from last week’s 1.60%

• 1yr Rtn +16.97% upa lot from last week’s +13.71%

The Russell 2000 reached a second new all-time high of January 12, 2018 of 1,598.18. Its previous high was 1,560.84 reached on January 4, 2018.

 

-Mutual funds

More gains.

On Thursday, January 11, 2018, the year-to-date average cumulative total reinvested returns for equity funds that fall under the broad U.S. Diversified Equity Funds heading was 3.33%. That’s up a hike from the previous week’s figure of 1.64%.

Three fund types not enjoying a positive new year include:

-Dedicated Short Bias funds, down on average -5.69%

-Real Estate Funds, -3.75%

-Utility Funds, -2.32%

Place your bets now as to whether that trend will continue for each knowing in advance that the direction of interest rates plays a big part in the relative performance of both real estate and utility funds.

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.

 

• Compound It

As a big fan of dividend-paying stocks, I can’t think of any reason not to reinvest the dividends the stocks in your portfolio pay back into those companies.

Remember, compounding works the same no matter how much money you are working with—a few bucks or millions.

Its rewards come to you based on percentages and time—the percentage rate that’s paid and the amount of time the security is held hence allowing the reinvested dividend to work for you.

 

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POCKETBOOK: Week ending Feb. 25, 2017

 

•Winning streak…and investment suggestion

Hard to believe, but last week the DJIA recorded its longest 11^th straight record close and its longest winning streak since 1992, according to CNBC.com.

That said, D.H.Taylor of SeekingAlpha.com, wrote on Feb. 24^th that the P/E ratio of the DJIA has only been over 25 on two other occasions: In 1929 and 2000. FYI, the P/E ratio for the past 135 years averages 15.

That news says to many that there’s a down coming. Who knows why, how large a decline or for how long it will last but the numbers suggest that there’s a market fall coming.

I’ll guess that the timing of which will be before the end of the year—if not way sooner. (How’s that for a not-sticking-my-neck-out-much prediction.)

Back to more of that said. If you’re wondering how to make a buck investing on Wall Street under whatever conditions, advice from Warren Buffett in his annual newsletter to shareholders might suit you just fine: “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profit, not the clients.”

He added: “Both large and small investors should stick with low-cost index funds.”

 

• Market Quick Glance

 Still more….

More highs for the major indices as the week ending Feb. 24, 2017 came to a close. The upward year-to-date performance trend was realized in three of the four indices followed here.

Below are the weekly and 52-week performance results— including the dates each has reached its high according to data from CNBC.com. Data is based on prices at the close of business for the week ending Feb. 24, 2017.

-Indices:

-Dow Jones + 5.36% YTD, up from last week’s 4.36%

• 1yr Rtn +26.31% up from last week’s 25.34%

The DJIA reached a 52-week high of 20,840.7 on Feb. 23, 2017. (Previous all-time high was 20639.87 on Feb. 16, 2017.)

 

-S&P 500 +5.74% YTD up from last week’s 5.02%

• 1yr Rtn +22.67 % down from last week’s 25.07%

The S&P 500 reached a 52-week high of 2,368.26 on Feb. 23, 2017. (Previous all-time high of 2,351.31 was reached on Feb. 16, 2017.)

 

-NASDAQ +8.59 YTD up from last week’s +8.46%

• 1yr Rtn +28.68% down a tad from last week’s 28.77%

The Nasdaq reached a 52-week high and its all-time of 5,867.89 on Feb. 21, 2017.

 

–Russell 2000 +2.76 YTD% down from last week’s +3.15%

• 1yr Rtn +36.44 % down from last week’s +38.44%

The Russell 2000 reached its 52-week high and its all time high of 1,410.04 on Feb.21, 2107.)

 

-Mutual funds

Continuing that upward trend.

The average U.S. Diversified Equity Fund enjoyed another good performance week as at the close of business on Thursday, Feb. 23, 2017, the year-to-date return on funds under this heading was up 4.82%, according to Lipper. That’s up from last week’s average of 4.59%.

The losing group under that big heading continued to be Equity Leverage Funds, down 12.78% on average—last week the average was down 12.37%. Winning group? Again it was Large-Cap Growth Funds, up 7.93%.

Changes under the Sector Equity Funds heading as only three fund types had year-to-date average returns of 10% or greater: Precious Metals Funds, up 18.64% —the week previous they averaged 22.50%; Global Science/Technology Funds, up 10.84% –last week 10.23%; and Commodities Precious Metals Funds, up 10.76%–last week it 10.34%.

Lost out were Commodities Base Metals Funds, up 8.16% that’s down from last week’s average of 10.36%.

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.

 

• FINRA and love and money

The Financial Industry Regulatory Authority appears to be getting to the heart of things with its new publication about love and money.

Titled, “Love and Money: Talking about Finances With Your Significant Other”, the piece is worth a read reminding folks not to overlook this oh-so and vitally important subject.

Funny how money, like sex, used to be a forbidden subject not so very long ago. Not so today. Don’t know what’s going on with your partner’s finances could spell disaster for all parties concerned.

Get some good discussion tips at FINRA.org.

 

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