Tag Archives: stock indices down

POCKETBOOK: Week ending March 11, 2017

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  • High on stocks

Some sources report it’s the “dumb money” that’s bought most seriously into the Trump Bump party on Wall Street. The “smart money”  folks,  (they are considered to be the professional money managers and not the ordinary everyday “dumb money” investor), are apparently said to be sitting with more cash, on the sidelines, rebalancing portfolios and  well aware that investing comes with risks. Extended bull markets and frothing highs being two of them.

Market highs are one thing, the likelihood of a market correction is quite another. But without an accurate crystal ball, it’s pretty tough telling the short-term future.

One future that’s had a rewarding past and not gone up in smoke could be cannabis stocks. While there are mixed messages coming out of Washington with respect to cannabis, one industry-related Canadian stock has provided the kind of highs its investors enjoy.

Canopy Growth (OTCPL:TWMJF) is Canada’s largest grower of weed. Over the past year the stock is up over 245% and grew its revenues by 180% during the most recent quarter, according to Jason Hamlin, a SeekingAlpha contributing columnist. Hamlin thinks that there is room for this company to grow.

While the high is appealing, there is plenty of smoke surrounding this relatively new  company. Considered the largest non-pharmaceutical marijuana stock in the world, TWMJF closed Friday, (3/10/17), at $8.07 and over the past 52-weeks has traded as low as$1.84 and high as $14.39.

Whether pot is a smart money or dumb money play, is anybody’s guess. Unless, of course, you are in the business.

  • Market Quick Glance

A chink in the armor?

Look at the year-to-date and 1-year returns on the four stock indices followed here show some changes: Returns are lower, albeit not by much, but still lower.

As we enter the Ides of March week, words out of Washington regarding the debt ceiling and direction of interest rates could signal more moves in a  southerly direction. We shall see come next Friday.

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 March 10, 2017.

-Indices:

-Dow Jones +5.77% YTD, down from last week’s 6.29%

  • 1yr Rtn +22.99% down from last week’s 23.97%

The DJIA reached an all-time high of 21,169.11 on March 1, 2017.

-S&P 500 +5.97% YTD down from last week’s 6.44%

  • 1yr Rtn +19.25% down from last week’s +19.55 %

The S&P 500 reached an all-time high of 2,400.98 on March 1, 2017.

-NASDAQ +8.89% YTD down from last week’s +9.06%

  • 1yr Rtn +25.73% up a lot from last week’s 24.71%

The Nasdaq reached an all-time high of 5,911,79 on March 1, 2017.

–Russell 2000 +0.60 YTD% down from last week’s +2.73 %

  • 1yr Rtn +28.32% down from last week’s +29.56%

The Russell 2000 reached its all time high of 1, 414.82 on March 1, 2017.

-Mutual funds

Slip sliding away.

The average total return for U.S. Diversified Equity Funds closed at 4.06 % at the close of business on Thursday, March 9, 2017, according to Lipper. That’s down from the previous week’s close of 5.22%.

There are 8,518 funds that make up the U.S. Diversified Equity Funds broad heading that includes 20 different types of funds from various cap and strategy funds to Equity Leverage and Alternative Active Extension Funds.

But there’s more in  the Lipper’s weekly performance report than U. S. diversified Equity Funds. Other headings include: Sector Equity Funds, 2,310 funds fall under this heading with roughly 27 different fund types included in it. At the close of business on Thursday, the average Sector Equity Fund was up 1.88?

World Equity Funds were up on average 5.56 %, with 4.518 funds falling with its 26 different types.

Add all the funds falling under those three large categories of funds together and for those 15,346 funds, their average YTD return was 4.16%.

Makes you kinda wonder what the birthday parties and Trump Bump celebrations are all about as 4.16% is nothing to really crow  much about.

That said, any plus-side return is better than a minus.

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.

  • Jobs

Here’s a thought about the jobs situation in the US that may make you rethink a thing or two. I received it last week from PNC Bank’s Florida and Texas Economists Mekael Teshome and Kurt Rankin respectively: “Job growth has averaged 196,000 over the past year, but is unlikely to maintain that pace throughout 2017. The issue is not one of demand for workers, but supply; it is unclear how many people there ae still standing on the sidelines who can come back into the workforce.

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POCKETBOOK: Week ending Jan.21, 2017

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•Bookies bets and recession realities

Wall Streeters aren’t the only ones who consider odds. Turns out the gambling world does too. According to Paddy Power, an online betting site, the odds of Trump not completing a full term as President of the United States is 7 to 4.

Additionally, the odds of Trump being impeached or forced to resign are 4 to 2; to split from Melania in 2017, 16 to 1; and to paint the entire White House gold, 500 to 1.

On that last point, Trump has made quite a dent with that gold thing. Seems this golden-haired guy has already had gold curtains installed in the Oval Office along with a gold rug and who knows where else you’ll find his golden touch.

While gold may be his thing, color the entire economic picture of the United States of America gray as the likelihood of a Trump recession during his tenure in office is 100 %.

As I wrote a few weeks back, there has been a recession during every single Republican president’s administration since World War II.

  • Market Quick Glance

In case you’ve forgotten, there were only 4 trading days last week—Monday was the Martin Luther King holiday and markets were closed. Oh, and there was the inauguration of our 45th President–a holiday for some.

So it was a four-day Wall Street week and as it turned out, not a great one for investors with the indices all  closing  lower than they had the week previous.

Below are the weekly and 1-year performance results for four popular stock indices based on the close of business prices  on Friday, Jan. 20, according to Bloomberg.

-Indices:

-Dow Jones + 0.43% YTD down from last week’s 1.07%.

  • 1yr Rtn +26.53% up from last week’s 23.63%.

P/E Ratio 18.66 up from last week’s 18.80.

 

-S&P 500 +1.55% YTD down from last week’s 1.67%.

  • 1yr Rtn +21.73% down from last week’s +23.63%.

P/E Ratio 21.22 up from last week’s 20.36.

 

-NASDAQ +3.23 YTD down from last week’s3.57%.

  • 1yr Rtn +22.65% down from last week’s 25.87%.

P/E Ratio 34.39 down from last week’s 34.47.

 

-Russell 2000 -0.35%YTD way down from last week’s +1.13%

  • 1yr Rtn +34.44% down from last week’s +38.0%.

P/E Ratio 48.13 down from last week’s 49.19.

 

-Mutual funds

Average year-to-date returns were lower at the close of business on Thursday, Jan. 19, 2017, as the average U.S. Diversified Equity Fund ended the week up 0.94%, according to Lipper ( it closed on 1/12/17 at 1.38%).

Even Equity Leverage Funds were off at 3.59% from the previous week’s  4.62% average return. Large-Cap Growth Funds were a tad off at 3.11% from their 1/12/17 showing of 3.13%.

The average year-to-date  Sector Fund was up 1.43%; World Equity Fund up 2.55%; and Mixed Asset Funds ahead by 1%.

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.

  • Fidelity stock fund managers and the stocks they like.

Ever now and then I get  an email from Jim Lowell, editor of Fidelity Investor, an investor advice newsletter.

In the one received on Jan. 22, he listed Fidelity’s Top 20 Favorite Stocks that he wrote were

“ the most owned, and hence most liked, by Fidelity’s top managers.”

While I can’t verify that. Or, don’t know the date when the list was compiled or when they were gleaned precisely from where, or if those holdings are still in portfolios, I did find the list interesting and thought you might too.

With that in mind, the list of 20 includes:

#1) Alphabet (GOOG)

#2)Apple(APPL)

#3) Facebook (FB)

#4) Amazon (AMZN)

#5) iShares ETFs

#6) Microsoft (MSFT)

#7) Berkshire Hathaway (BRK):

#8) Visa (V)

#9) UnitedHealth Group (UNH)

#10) Medtronic (MDT)

#11) Salesforce (CRM)

#12) Amgen Inc. (AMGN)

#13) NVIDIA Corp (NVDA)

#14) JP Morgan Chase (JPM)

#15) Wells Fargo (WFC)

#16) Activision Blizzard, Inc. (ATVI)

#17) Home Depot (HD)

#18) Chevron (CVX)

#19) MasterCard Inc. (MA)

#20) QUALCOMM Inc. (QCOM)

 

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