Short excerpts from articles I found interesting.
I may not agree with the author and the following material is not intended as investment advice.
- “…After two weeks in the red, the Dow Jones Industrial Average advanced 275.44 points, or 1.3%, to 21,080.28 last week, and came within 35.27 points of its March all-time high. The Standard & Poor’s 500 index and the Nasdaq Composite didn’t come up short: The former rose 1.4%, to 2415.82, while the latter gained 2.1%, to 6210.19, both record highs.”
- “…LPL Financial’s Ryan Detrick notes that the S&P 500 had gained 7.9% through Thursday, the 100th trading day of 2017. Why is that important? He says that since 1950, the S&P 500 has never finished lower after gaining at least 7.5% during the first 100 trading days—its 23 for 23. And on 20 of those occasions, the benchmark continued to rise, with an average gain of 9% over the remainder of the year.”
- “Today, tech stocks make up 23.1% of the S&P 500, above the historical average of 15.4%, and fast catching up to the 26.5% combined weight for the six smallest sectors. While 23% still looks innocuous compared with a 34% weighting at the tech-bubble peak, Bespoke Investment Group reminds us that tech’s weight didn’t exceed 23% until September 1999, and has spent only a few months above 23%. No, we’re not in a similar bubble, and big tech stocks offer quality, liquidity, and resilient profit growth, all traits that investors crave late in an economic cycle. But it’s still an increasingly crowded ship onto which investors are climbing.”
- “…That reminder is particularly timely with unemployment at just 4.4%. This may sound counterintuitive, but historically, “the highest unemployment rates have been followed by the strongest returns on average,” …The quintile with the highest unemployment (from 7.3% to 10.8%) led to one-year average S&P returns of 16.7%. In contrast, the fully employed quintile (with unemployment from 2.5% to 4.4%) spawned one-year average returns of just 5.9%.”
- “…Gold posted a “golden cross” this week, which is what happens when the 50-day moving average climbs above the 200-day moving average, often seen as a bullish move. The metal is up about 10 percent year-to-date on a weaker U.S. dollar, which has declined more than 5.5 percent over the same period.”
- “…Markets watched in amazement this week as bitcoin, the online-only currency, soared to a fresh high of $2,740, more than twice the value of an ounce of gold. On Thursday alone, it traded within a $510 range, underscoring the nearly 10-year-old cryptocurrency’s high levels of volatility and speculation. Some bitcoin analysts forecast even higher gains, while others see the formation of a bubble they liken to the dotcom crash of the late 1990s and early 2000s. Since only March, when it surpassed gold, the digital currency has doubled in value.”
- “…Fidelity CEO Abigail Johnson, who surprised many attendees by embracing the digital currency and supporting its growth. I admire Johnson, head of a traditional financial firm, for recognizing the fact that bitcoin is already disrupting our industry and will likely continue to do so for some time. Not only does Fidelity now allow its workers to buy their lunches using bitcoin, but there are also plans to make it possible for clients to see and manage their bitcoin assets.”