We have two classes of forecasters: Those who don t know and those who don t know they don t know (John Kenneth Galbraith, economist)

Transcription

1 David J. Klein Senior Vice President Financial Advisor The Auctus Group RBC Wealth Management Phone: Fax: Toll Free: website: June 25, 2018 We have two classes of forecasters: Those who don t know and those who don t know they don t know (John Kenneth Galbraith, economist) My Website: The June edition of RBC s Global Insight is in the middle of the front page while RBC s Investor s Edge is on the bulletin board on the right side of the main page. Please note the other interesting articles and commentaries. Key Statistics Year-to-date a/o 6/22/2018 Dow: (-0.56%) S&P 500: +3.04% Nasdaq: % Treasury Bond Yields: Year- to-date a/o 6/22/ year Treasury: 2.33% 2-year Treasury: 2.56% 5-year Treasury: 2.77% 10-year Treasury: 2.90% - Back under 3% 30-year Treasury: 3.04% --Yields fell very slightly --Notice the difference between the yield on the 2-year and the 10-year Treasury. There is a difference of only 0.34%. Markets: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) For the week: Dow fell (-2.03%), S&P 500 fell (-0.89%), Nasdaq fell (-0.69%) Dow snapped an 8-day losing streak on Friday Most global markets were down for the week Concerns about trade tariffs helped sink the market China s Shanghai Composite Index fell 4.4% last week now down 13% ytd OPEC votes to lift oil production caps oil still rose to $67.50/barrel

2 Economic News: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) Jobless claims hovering near multi-decade lows Fed Chairperson Powell makes a strong case for continued rate hikes 35 large US banks passed the first leg of the Fed stress test Eurozone growth shows signs of stabilization after feeble start to the year Trade talk turns tough tit-for-tat actions have been escalating Trump threatens tariffs on most Chinese imports British PM May won a narrow parliamentary victory over Brexit withdrawal Housing starts climbed to an 11-year high China Trade: The wide disparity between imports and exports between the US and China. Trump threatens tariffs on most Chinese imports.

3 Foreign Opinion of the US:

4 Question of the Week: Which company was removed from the Dow Index of 30 stocks last week, and which company was added to the index? Question and Answer From Last Week: If your investment account compounds at 6% each year, how long will it take to double your money? Answer: At a 6% compounded rate, your investment will double in 12 years. This is known as the rule of divided by the compounded rate gives you the number of years to double your money. 8% compounded will double in 9 years. Did You Know: China has more millennials (400 million) than the population of the United States (328 million). Millennials were born between and are currently between the ages of (BTN Research, Financial Times) 25% of Americans that reach the age of 65 will live at least another 25 years to age 90. (BTN Research, Social Security Administration) Sports Trivia: The 2018 FIFA World Cup soccer tournament began on 6/14/18 with 32 nations competing over the month-long event. Fox Sports paid $200 million for broadcasting rights and has planned for more than 350 hours of programming. Team USA and Team Italy failed to qualify. (BTN Research, 21 st Century Fox) Referrals: Many sincere thanks for your referrals of family, friends, and associates. I am deeply appreciative. Sincerely, David J. Klein Senior Vice-President Financial Advisor The views presented here are solely the views and opinions of David Klein and do not reflect the views of RBC Wealth Management, or its officers and directors. Data is believed to be from reliable sources, but we make no representation as to its accuracy or completeness.. The Dow Jones Industrial Average covers 30 blue chip U.S. companies selected by the editors of the Wall Street Journal The Dow represents about 25% of the NYSE market capitalization and less than 2% of NYSE issues. The Nasdaq Composite is a market-value weighted index that measures all NASDAQ domestic and foreign common stocks. The Standard and Poor s 500 is an unmanaged, capitalization weighted benchmark that tracks broad-based changes in the U.S. stock market. This index of 500 common stocks is comprised of 400 industrial, 20 transportation, 40 utility, and 40 financial companies representing major U.S. industry sectors. The index is calculated on a total return basis with dividends reinvested and is not available for direct investment.

5 This material is based on data obtained from sources considered to be reliable. However, it is not guaranteed to accuracy and does not purport to be complete. The illustrations are for informational use only. RBC Wealth Management does not provide tax or legal advice. All decisions regarding the tax or legal implications of your investments should be made in conjunction with your independent tax or legal advisor. RBC Wealth Management, a division of RBC Capital Markets Corporation, Member NYSE/FINRA/SIPC.