Calm before the storm.....?
Submitted by Oram & Kaylor on May 15th, 2017Trying to accurately predict the movement of the financial markets is akin to predicting the weather. No one really knows, and we have to wait to see what actually happens.
Market Commentary - June 20, 2016
Submitted by Oram & Kaylor on June 20th, 2016Brief Market Commentary for the week of June 20, 2016
The Markets
U.S. stocks dropped Friday. Britain’s upcoming vote on whether to leave the European Union weighed on investors, while Apple’s falling shares dragged the major indexes down. For the week, the Dow fell 1.00 percent to close at 17,675.16. The S&P lost 1.12 percent to finish at 2,071.22, and the NASDAQ dropped 1.92 percent, to end the week at 4,800.34.
|
Returns Through 06/17/16 |
1 Week |
YTD |
1 Year |
3 Year |
5 Year |
|
Dow Jones Industrials (TR) |
-1.00 |
2.82 |
1.21 |
7.82 |
10.84 |
|
NASDAQ Composite (PR) |
-1.92 |
-4.14 |
-5.22 |
11.62 |
12.90 |
|
S&P 500 (TR) |
-1.12 |
2.42 |
0.82 |
10.42 |
12.66 |
|
Barclays US Agg Bond (TR) |
0.05 |
4.53 |
5.14 |
3.34 |
3.49 |
|
MSCI EAFE (TR) |
-2.76 |
-5.29 |
-11.78 |
0.39 |
2.25 |
Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.
Double Plus — Government outlays for Medicare have increased 9.8 percent annually over the past 40 fiscal years, rising from $13 billion (1975) to $546 billion (2015). Inflation, as measured by the Consumer Price Index, has increased 3.7 percent annually over the same 40-year period (source: OMB, Department of Labor, BTN Research).
A Decade Away — America’s total public debt is projected to be 85.6 percent of GDP in 2026 or 10 years from now (source: Congressional Budget Office, BTN Research).
Sounds More Like Deflation — The annual inflation target for the 19-nation Eurozone is 2 percent. Actual year-over-year inflation, however, was negative 0.2 percent (i.e., deflation) as of April 30, 2016, and negative 0.1 percent as of May 31, 2016 (source: Eurostat, BTN Research).
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America. SAI# 1528727.1
