Tag Archives: Taxes and debt

POCKETBOOK Week Ending Oct. 27, 2018



  • Another look

Trump’s tax break, that helped the very very wealthy in America and corporate America, is heading in the direction of something other than the very great things it was supposed to do for the country and all of its citizens.

A couple of examples: The U.S. economy slowed in the third quarter. Additionally, revenues aren’t going to come anywhere close to covering the huge cost of Trump’s had-to-have tax plan as the federal budget deficit has exploded to $779 billion, roughly $300 billion more than estimated, according to the Committee for a Responsible Federal Budget.

And then there’s the stock market.

With the bears in charge, here are a few bear number tidbits worth keeping in mind from CNBC.com:

– Since World War II, the average correction for the S&P500 lasts 4 months and sees equities slide 13% before bottoming.

-Bear markets average a loss of 30.4% and last 13 months and takes stocks nearly 22 months, on average, to recover.


  • Market Quick Glance

Well, what a week it was. The only investors I can think of who may have been happy and rewarded for last week’s performance of the DJIA and S&P500 were those who shorted their positions in them.

Below are the weekly and 1-year index performance results for the four major indices—DJIA, S&P 500, NASDAQ and the Russell 2000— including the dates each reached new highs. Data is according to CNBC.com and based on prices at the close of business on Friday, Oct. 26, 2018.

DJIA -0.13% YTD underwater from the previous week’s return of 2.93%.

  • 1 yr Rtn 5.50% way down from the previous week 9.85 %

Most recent DJIA a new ALL-TIME CLOSING HIGH was reached on Oct.3, 2018 of 26,951.81. The previous high was reached on Sept. 21, 2018 of 26,796.16.


-S&P 500 -0.56% YTD way underwater from last week’s 3.52%

  • 1 yr. Rtn 3.84% way down more than half from last week’s 8.03%

The S&P 500 reached a BRAND NEW CLOSING ALL-TIME HIGH on Sept. 21, 2018 of 2,940.91. The previous closing high was reached on August 29, 2018 of 2,916.50.


-NASDAQ 3.82% YTD down a lot from last week’s 7.90%

  • 1yr Rtn 9.31% down from last week’s 12.78%

Nasdaq reached a BRAND NEW 52-week CLOSING HIGH on August 30, 2018 of 8,1333.30. The previous high was reached on August 24, 2018 of 7,949.71.


-Russell 2000 -3.37% YTD big way down from last week’s 0.42%

  • 1yr Rtn -0.91% big down from last week’s 2.65%

The Russell 2000 reached a BRAND NEW 52-week ALL-TIME HIGH on August 31, 2018 of 1,742.09. The previous high was reached on August 24, 2018 of 1,726.97.


-Mutual funds

A repeat from last week:

At the close of business on Thursday, Oct. 18,2018, the average total return for funds that fall under the U.S. Diversified Equity Funds heading was 2.36%, according to Lipper. That’s higher than the 1.13% average return posted one week prior.

While the average performance of the U.S. Diversified Equity Funds was above water, that’s not been the case for the other types of equity funds that Lipper tracks.

So even though y-t-d numbers have improved slightly, the following broad categories of funds have y-t-d average performances that are still underwater.

Below is a comparison of the 10/18 total returns from the previous week’s numbers:

-Sector Equity Funds, on 10/18 enjoyed an average return of -1.59, an improved from the previous week of -2.51%

-World Equity Funds, an average return of -9.30, a bit of an improvement from the prior week’s return of -9.73%

-Mixed Asset Funds, -1.61% is an improvement from the prior week’s return of -2.11%

-Domestic L-T Fixed Income Funds, now- 0.67% is an improvement from prior week’s average return of -0.80%

-World Income Funds, -4.41% is an improvement from the prior week’s average return of-4.86%.

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.


  • Up In Smoke

If you bought into the rush of last week’s move by Canada to legalize pot, hopefully you didn’t bet the farm expecting to make a quick bundle.

Here’s what I mean; Below are the 52-week highs and lows of a few popular pot stocks along with where they closed on Friday, Oct. 26, 2018.

-Tilray ( TLRY), although it had gained 745% since its IPO in July, its 52-wk price range has gone from $20.10 to $300 per share. On Friday, the stock closed at $108.08.

-MedMen Enterprises, (MMNFF) has moved between a low of $2.61 a share to a high of $7.67 over the past 52 weeks. It closed on Friday at $4.67.

-Canopy Growth Corp (CGC) has a 52-week per share range of $16.74 to $59.25. On Friday it closed at $38.70 per share.

No new highs here.