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The Best of What They Said and I Read week ending 3/12/2017

Short excerpts from articles I found interesting.

I may not agree with the author and the following material is not intended as investment advice.

 

Barron’s – Major Indexes Suffer Their First Loss in Weeks – March 11, 2017 by Ben Levisohn

  • “The Standard & Poor’s 500 index ended a six-week winning streak as tumbling oil prices and a looming Federal Reserve rate hike caused stocks to stumble.  The S&P 500 fell 0.4% to 2,372.60 last week, while the Dow Jones Industrial Average dropped 102.73 points, or 0.5%, to 20,902.98, their largest declines so far this year. The Nasdaq Composite dipped 0.2% to 5,861.73, its first weekly decline in seven weeks.”
  • “…Still, a sense of unease hangs over the market, especially after the price of oil fell 9.1% last week, sinking to its lowest level since November. And the market is certainly overdue for a selloff. The S&P 500 generally drops 3% to 5% every two to three months, says Binky Chadha, chief global strategist at Deutsche Bank. The index has now gone more than four months without such a decline…But just because the market is due for a correction doesn’t mean it will get one…”

 AAII Investor Update – The Bull Turns 8 Years Old:  Five Observations and Suggestions – March 9, 2017 by Charles Rotblut

  • The anniversary makes the current bull market the second-longest since World War II. Stocks will have to continue their ongoing upward trend for an additional 17 months to catch up with the 1990’s bull, which ran from October 11, 1990, through March 24, 2000.”
  • What You Do after You Invest Matters More Then When You Invest — One of the most common questions those of us in the investment field are asked can be paraphrased as: “Is now a good time to be invested in stocks?” The answer is always yes as long as you don’t need the money for at least a few years…So, worry less about investing at the wrong time and focus more on adhering to a well-thought-out long-term plan.”

U.S. Global Investors – Investor Alert – March 10, 2017 – by Frank Holmes

  • “…Eight years ago this week, President Barack Obama gave investors a surprisingly hot trading tip. In office less than two months, he commented that we were at “the point where buying stocks is a potentially good deal if you’ve got a long-term perspective.”  Obama couldn’t have known then how accurate his call was. The market found a bottom that very week, and investors who took the president’s advice managed to get in on the absolute ground floor.  At the time, investor sentiment was at or near record lows.”
  • “Today, many of those bullish investors have seen some spectacular gains. Since its low of 666 in March 2009, the S&P 500 has climbed a whopping 260 percent, with not a single year of losses. The average annual return has been over 15.7 percent, based on Bloomberg data. With dividends reinvested, it’s closer to 18 percent.”
  • “Employers added 235,000 workers to their payrolls in February, the government reported on Friday, a hefty gain that clears the path for the Federal Reserve to raise its benchmark interest rate when it meets next week. World Interest Rate Probability data provided by Bloomberg shows a 100 percent chance the Federal Reserve will raise its key interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent at the conclusion of its March 14-15 meeting.”

 


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