Count your age by friends, not years. Count your life by smiles, not tears (John Lennon)

Transcription

1 David J. Klein Senior Vice President Financial Advisor The Auctus Group RBC Wealth Management Phone: Fax: Toll Free: website: October 1, 2018 Count your age by friends, not years. Count your life by smiles, not tears (John Lennon) My Website: The latest 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 9/28/2018 Dow: +7.04% S&P 500: +8.99% Nasdaq: % Treasury Bond Yields: Year- to-date a/o 9/28/ year Treasury: 2.59% 2-year Treasury: 2.81% 5-year Treasury: 2.94% 10-year Treasury: 3.05% 30-year Treasury: 3.19% --While the Fed raised the fed-funds interest rates last week, the yields on government bonds barely moved. --The spread between the 2-year and the 10-year narrowed slightly to 24 basis points

2 Markets: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) For the week: Dow fell (-1.07%), S&P 500 fell (-0.54%), Nasdaq rose +0.74% Despite negative week, S&P 500 rose for the 6 th consecutive month All 3 major indices climbed to new highs during this past quarter Oil rose on Friday amid growing signs of a global supply deficit Weekly Performance: 11 sectors of the S&P 500 Change in Sector Weightings of the S&P 500

3 Economic News: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) Fed made its 3 rd interest rate hike this year - expected to raise rates again in December Fed expected to raise rates 3 times in 2019 Fed has a positive outlook on growth Economy grew at robust 4.2% in Q2 Q2 earnings of the S&P 500 companies rose 25% y-o-y, matching Q1 earnings pace Corporate revenue growth has been increasing Strong corporate profits have led to more capital expenditures, employment, and rising wages Inflation holding around the Fed s price target of 2% Consumers are optimistic Pension Funding: Illinois continues to have one of the worst funded state pension plans in the nation, at around the 40% level.

4 Question of the Week: The S&P 500 index is one of the major indexes of the market. In what year did it become an index of 500 companies? Question and Answer From Last Week: What company is known for having filed the largest corporate bankruptcy ever in the US? Answer: Lehman Brothers, a 158-year old company was forced to file for bankruptcy only 10 years ago on 9/15/2008. Did You Know: The COLA (Cost of Living Adjustment) made to Social Security benefits each year has been less than 2% in 7 of the last 9 years. (BTN Research, Social Security) If the current business expansion in the United States lasts through July 2019, it will be the longest expansion at 121 months in US history. (BTN Research, National Bureau of Economic Research)

5 Sports Trivia: As of 9/20/18, The Seattle Mariners were 7 1/2 games out of the American League wildcard spot. The Mariners have the longest post season drought in baseball as they have not made the playoffs since (BTN Research, MLB) 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. 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