David J. Klein Senior Vice President Financial Advisor The Auctus Group RBC Wealth Management Phone: 847-215-5326 Fax: 847-215-5315 Toll Free: 800-879-3246 e-mail: david.klein@rbc.com website: www.davidjklein.com March 26, 2018 "Life has been your art. You have set yourself to music. Your days are your sonnets (Oscar Wilde) My Website: www.davidjklein.com: In the middle of the front page is a report on the Global Market Outlook from RBC. The latest edition of RBC s Investors Edge is on the bulletin board on the right side of the main page. Many interesting articles and commentaries. Please take a look. Key Statistics Year-to-date a/o 3/23/2018 Dow: (-4.80%) S&P 500: (-3.19%) Nasdaq: +1.29% Treasury Bond Yields: Year- to-date a/o 3/23/2018 1-year Treasury: 2.04% 2-year Treasury: 2.28% 5-year Treasury: 2.61% 10-year Treasury: 2.82% - yields were little changed from last week 30-year Treasury: 3.06% LIBOR: The London Inter-Bank Offered Rate is a rate that is used by some of the world s major banks who charge each other for short-term loans. It helps banks to establish interest rates on loans.
Markets: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) For the week: Dow fell (-5.67%), S&P 500 fell (-5.95%), Nasdaq fell (-6.54%) Dow dropped 5.7% for the week down 1,413 points S&P 500 slumped 6% - Nasdaq dropped 6.5% Global equities traded lower Oil rose more than $4 to $65.50/barrel OPEC may extend productions curbs Volatility index jumped to 23.25 from 15.5 a week ago Bull Market Corrections: Please see the answer to last week s question. Despite being in a bull market for the past 9 years, many pullbacks have occurred. Today, we are again showing you a chart of corrections that we posted 2 weeks ago. Time will tell if the current pullback is just a healthy correction or not. --Do you remember the steep corrections that occurred in some of the past years?
Economic News: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) As expected, Fed raised interest rates ¼ % Expectations are for further interest rates hikes during the year Fed upgraded their estimates for growth of the economy from 2.5% to 2.7% Fed projecting the unemployment rate to drop to 3.8% from the current 4.1% Fed does not project any big acceleration in inflation Trump announced tariffs of about $60 billion on imports from China --Following is a clear illustration of the US trade deficit, imports and exports International News: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) European growth in 2017 was slightly better than that of the US in 2017 Recent economic indicators show European growth falling off slightly as growing global trade friction has increased Britain officially leaves the EU next March, 2019 Many of the BREXIT issues have been resolved
Question of the Week: What is the classic definition of a BEAR market? Question and Answer From Last Week: The current bull market is now in its 9 th year. Since 2009, which 2 years have been the worst as measured by the Dow? What were the returns of the 2 worst years? Answer: The 2 worst years were 2011 and 2015. Following are the results for these 2 years for the Dow, the S&P 500, and the Nasdaq. 2011 2015 Dow rose 5.5% Dow fell (-2.2%) S&P 500 0% for the year S&P 500 fell (-0.7%) Nasdaq fell (-1.8%) Nasdaq rose 5.7% Did You Know: Only 38% of American retirees are debt-free. 62% of these American retirees still have outstanding mortgage debt, credit debt, auto loan debt or student loan debt, Society of Actuaries) (BTN Research, In 1942, there were over 13 million manufacturing jobs in the US. As of last month, there were 12.6 million manufacturing jobs. (BTN Research, Dep t. of Labor) Sports Trivia: Prince Fielder of the Texas Rangers stopped playing in July, 2016 due to his 2 nd neck injury. Even though he has stopped playing, the Rangers still owe Fielder $72 million for the next 3 years, 2018-2020. MLB teams typically take out insurance policies covering a player s career-ending disability (BTN Research, Texas Rangers) 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 www.davidjklein.com 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 Corporation, Member NYSE/FINRA/SIPC.