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 for the week of March 20, 2017
Submitted by Oram & Kaylor on March 20th, 2017The Markets
Stocks began in the green on St. Patrick’s Day but slipped by closing. Adobe’s strong earnings report supported the S&P tech index. The healthcare sector lagged following a disappointing report on a cholesterol drug and uncertainty over the proposed healthcare bill. For the week, the Dow rose 0.08 percent to close at 20,914.62. The S&P gained 0.28 percent to finish at 2,378.25, and the NASDAQ climbed 0.67 percent to end the week at 5,901.00.
|
Returns Through 3/17/17 |
1 Week |
YTD |
1 Year |
3 Year |
5 Year |
|
Dow Jones Industrials (TR) |
0.08 |
6.47 |
22.78 |
11.54 |
12.40 |
|
NASDAQ Composite (PR) |
0.67 |
9.62 |
23.58 |
11.30 |
14.07 |
|
S&P 500 (TR) |
0.28 |
6.72 |
19.06 |
10.88 |
13.52 |
|
Barclays US Agg Bond (TR) |
0.50 |
0.15 |
0.54 |
2.47 |
2.27 |
|
MSCI EAFE (TR) |
2.07 |
7.29 |
11.25 |
1.25 |
5.53 |
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.
Big Change — The Agency for Health Care Administration (AHCA) would change the funding of Medicaid as of Jan. 1, 2020, from the current open-ended federal matching structure to a single block grant provided to the states by the federal government (source: AHCA, BTN Research).
Us and Them — China has a 6.5 percent target for economic growth during calendar year 2017. The United States has achieved year-over-year growth of at least 6.5 percent just once in the last 50 years, i.e., growth of 7.3 percent during calendar year 1984 (source: National People’s Congress, BTN Research).
Both Components Necessary — GDP growth of 3 percent per year, a goal of the Trump administration, could be achieved with 2 percent productivity growth (output per hour per worker) combined with 1 percent labor force growth (source: Department of Labor, 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
