Tag Archives: top performing equity funds

POCKETBOOK: Week ending May 28, 2016

  • american-flag-cupcakes Memorial Day

Since our country first began, more than 1.1 MILLION Americans have perished in wars and conflicts fighting for and upholding the freedoms we all are fortunate enough to enjoy in this gorgeous, diversified, ever-changing and enduring country that we call home.

Do pause, honor and celebrate them.

  • Market Quick Glance

-Indices:

Here are the year-to-date performance figures for the major indices through May 27, 2016, according to Bloomberg. To provide a longer performance perspective, 1-year returns have been added.

All four of the indices below showed significant performance improvements from the previous week’s returns. Clearly that is something to cheer about. But the big question remains: Is this a positive performance trend that will continue or merely a short-term spike? As always, time will tell.

-Dow Jones +3.85% YTD  (almost double from last week)

1yr Rtn +1.85 % (up from -1.44%)

-S&P 500 +3.66%YTD (more than doubled from previous week of 1.32% YTD)

1yr Rtn +1.80% (up almost 50 basis points)

NASDAQ -0.85% YTD (a significant improvement from last weeks -4.18%)

1yr Rtn -1.37% (also a big move upward from last week’s -5.03%)

Russell 2000 +1.88 YTD (a delightful upside move from last week’s -1.53%)

1yr Rtn -6.34 % (a much improved return from last week’s -9.8 %)

 

-Mutual funds

Through Thursday, May 26, 2016 the average U.S.Diversified Equity Fund gained a smidge from the previous week ending this week down only 1.29 percent year-to-date, according to Lipper.

You’ve got to look back 3 years, 2/28/13 through 5/26/16, to find a lip-smacking average return for this broad category of fund types. The average fund in that period of time was + 9.02 percent.

As an aside, following the Rule of 72, a 9 percent annual rate of return means  money doubles in value in 8 years. So $10,000 invested at a 9 percent rate of return would be worth $20,000 in 8 years. On the other hand, an investment earning a 1.39 percent rate of return would take about 55.8 years to double in value.

Back to mutual fund performances, of the 25 largest mutual funds around, the top three performing funds year-to-date through May 26, 2016 were all from the American Funds  Fund Family: American Fund ICA, +5.72 percent; American Funds CIB, +5.30 percent; and +American Funds Inc., 4.60 percent.

The worst performing fund over that same time frame was the Dodge & Cox Intl Stock fund, -1.29 percent.

Visit www.allaboutfunds.com for weekly updates to see how 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.

Lipper’s weekly performance figures for stock and fixed-income funds are at www.allaboutfunds.com in the left column on the home page.

  • Donald Trump says…

From where I sit, Donald Trump appears to have a lot of issues—- personally and professionally. In addition to his bullying behavior, the one that bothers me the most professionally has to do with money.

That five-letter little word means an awful lot to this presidential hopeful who boasts about his wealth but at the same time won’t disclose any real figures regarding his income, or, reveal his tax returns. Transparency, it seems, isn’t a part of the art of his deal.

That raises a red flag for me from an honestly and integrity level. It makes me wonder what kind of player this Commander-in-Chief wannabe would be for America and in the world arena.

In North Dakota last week, at a rally of his supporters, Mr. Trump told his audience that “you have to be wealthy in order to be great.”

Don’t believe that. It’s total hogwash.

America is a great country. Right now. Even as it is today.

Is there room for improvement in our country on a number of fronts ? Absolutely. But as many of us already know, throwing money at a problem doesn’t necesssarily solve it or make things better. We also know that rich leaders aren’t necessarily better leaders than those of lessor or minimal fortunes. And more importantly, that money doesn’t make a country great, rather it is the people who live in and govern the country that do.

So don’t let anyone try to tell you that what it takes to be great —or for America to be a great country— is money. That is both a lie and a cheap shot.

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POCKETBOOK: Week ending April 23, 2016

IMG_0874.JPG•Testa’s,  time and a financial literacy lesson.

I’ve substituted my usual Pocketbook photo for this yummy picture of Testa’s 95th birthday party cake.

In case you don’t know, Testa’s is a Palm Beach institution. The family-run restaurant has been serving tasty Italian food since 1921. More than half of those years at their location on Royal Poinciana Way where their outdoor patio and knotty pine booths inside, mixed with the aroma of home-made cooking, keep  customers coming back again and again.

While the restaurant’s look  hasn’t changed much over the decades, dining prices sure have —as is to be expected  given time.

At their party celebration earlier this month, Tom Testa told the crowd gathered in Via Testa that in 1949, a martini, daiquiri and Manhattan could be had for 50 cents,lamb chops and Italian spaghetti entrees started at $1.50.

Two bucks for a drink and dinner. Imagine that.

The financial literacy lesson here? Time and money go hand-in-hand—the more time that passes the more money you’ll need to enjoy the stuff you love.

  • Market Quick Glance

-Indices:

Here are the year-to-date performance figures for the major indices through April 22, 2016  according to Bloomberg. To provide a longer performance perspective, 1-year returns have been added.

Overall it was another winning week for many stocks as the 1-week performance figures were better for three of the four indices below than they were at the end of  the previous week— Nasdaq being the stinker:

Dow Jones +4.16% YTD

1yr Rtn +2.21%

-S&P 500 +3.02% YTD

1yr Rtn +0.93%

NASDAQ -1.62% YTD

1yr Rtn -2.38%

-Russell 2000 +1.41% YTD

1yr Rtn -8.20%

 -Mutual funds

Through Thursday, April 21, 2016 the average U.S.Diversified Equity Fund gained some strength — up on average 1.28 percent year-to-date, according to Lipper.

For the second week in a row Equity Income Funds had the highest returns posting gains double what they were during the previous week: up 3.91 percent, year-to-date.

Three fund categories sported average returns of more than 4 percent: Equity Income Funds up 4.28 percent; Mid-Cap Value Funds up the same at 4.28 percent; and Small-Cap Value Funds up 4.26 percent.

Dedicated Short-Bias Funds continued heading south, down 11.15 percent.

Sector Equity Funds performed well. The 2,275 included under that heading up, on average, 5.47 percent. Precious Metals Funds lead the way, up a whopping 66.82 percent.

Visit www.allaboutfunds.com for weekly updates to see how 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.

Lipper’s weekly performance figures for stock and fixed-income funds are at www.allaboutfunds.com in the left column on the home page.

  • We are goofy about money

You know as well as I do that each of us has our own individual point of view about money. And all of it is pretty much nutty. How much we need, how much we spend, how much we lie about what we need, have, spend and save is different  for each of us.

Money, and its many uses,  winds up creating our own personal conundrum.

Proving that point, results from a recent Fifth Third Bank study found our money thinks and money acts are often two different things:

“Forty-eight percent of Americans consider themselves to be financially savvy. Based on survey questions examining financial savings and planning, many have the right to be confident.

  • 45% percent of respondents know 20% of income should be set aside for savings.
  • More than half1 of those surveyed know an emergency fund should hold six months of living expenses.
  • 46% percent of Americans agree retirement savings should begin in a person’s 20s.

But that knowledge isn’t reflected in real-life decisions.

With high marks for understanding financial concepts, Americans have the know-how to make informed decisions. Unfortunately, they aren’t applying the perceived understanding to their own finances.

  • 47% percent of respondents frequently live paycheck to paycheck.
  • 66% of Americans don’t have six months of savings in their emergency fund.
  • 30% percent don’t have an emergency fund at all.
  • Over 50% don’t contribute to a 401K, IRA or other retirement plan.”

 

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