Kindness is a language which the deaf can hear and the blind can see (Mark Twain)

Transcription

1 David J. Klein Senior Vice President Financial Advisor RBC Wealth Management Fax: Anthony Hubick First Vice President Branch Director Private Client Group Consulting Group RBC Wealth Management Fax: January 8, 2018 Kindness is a language which the deaf can hear and the blind can see (Mark Twain) Our Website: Go to our website to register and sign in to your account. If you have not yet registered, you will find the registration link on the upper left side of the main page. There is new material on the bulletin board and on the front page. Check it out! 2017 Dow %, S&P %, Nasdaq % US dollar approached a 3-year low, down 9.7% 10-year treasury closed at a yield of 2.41% Oil closed at its highest level in 2 ½ years - up over $60/barrel --Dow hit 4 one-thousand point milestones during the year

2 2018 Key Statistics Year-to-date a/o 1/5/2018 Dow: +2.33% S&P 500: +2.60% Nasdaq: +3.38% Treasury Bond Yields: Year- to-date a/o 1/5/ year Treasury: 1.71% 2-year Treasury: 1.84% 5-year Treasury: 2.16% 10-year Treasury: 2.35% 30-year Treasury: 2.68% Market: (Barron s, IBD, WSJ, RBC, MFS, ) For the week: Dow rose +2.33%, S&P 500 rose +2.60%, Nasdaq rose +3.38% Dow, S&P 500, Nasdaq hit all-time highs 3% was the biggest correction (pullback) for the S&P 500 in That small correction had not occurred since 1995 Since 1980 there has been a pullback of at least 5-10% every year except for 1995 and 2017 Global equities extended their gains - FTSE 100 and MSCI Asia Pacific indices hit all-time highs Nikkei, Japanese index, at 26-year high Combination of strong global growth, low interest rates and subdued inflation appears to be bolstering global markets I get the sense that people are starting to worry they re missing out on something. (Greg Woodard, Manning & Napier) Economic News: (Barron s, IBD, WSJ, RBC, MFS) 148,000 jobs created in December lower than expectations of 190,000 jobs Average hourly earnings advanced slightly Unemployment rate holds at 4.1% US economy added 2.1 million jobs in 2017

3 --As reported by FactSet, corporate earnings are expected to grow this year and next --Industrial production in the US continues to grow

4 --And housing continues to be in a strong recovery mode since the financial collapse International News: (Barron s, IBD, WSJ, RBC, MFS ) Global growth continues Eurozone headline inflation fell to 1.4% - below target of 2% Eurozone manufacturing sector had solid growth in 2017 JP Morgan Global composite manufacturing index rose to near 7-year high Question of the Week: Over the past 100 years, what has been the lowest yield on the 10-year Treasury? In what year did this occur? (answer next week) Question and Answer From 2 Weeks Ago: At what rate has the US economy grown over the last 16 years from 2001 through 2016? Answer: From 2001 through 2016 the US economy grew at the rate of 1.8% per year (BTN, Commerce Dep t.)

5 Did You Know: The national debt of the United States was $ trillion as of Thursday 12/28/17, an increase of $11.4 trillion (from $9.121 trillion) since 12/28/07 or 10 years ago (BTN, Treasury Department). The price of oil ended 2017 at $60.12 a barrel, up +12% (and $6.40 a barrel) from its 2016 close of $ The $60.12 price was the first daily close above $60 a barrel since 6/24/15 (BTN, CME Group). Your Referrals: Many sincere thanks for your referrals of family, friends, and associates. We are deeply appreciative. Sincerely, David and Tony The Auctus Group 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 The views presented here are solely the views of David Klein, and do not reflect the views of RBC Wealth Management, or its 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. 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 you independent tax or legal advisor. RBC Wealth Management, a division of RBC Capital Markets Corporation, Member NYSE/FINRA/SIPC