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Beltzville State Park has waterfalls, boating, hiking and a sand beach, all located in the southern foothills of the Pocono Mountains, PA.
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| THE MARKETS | |
A hypothetical
Doctor of Investments might say we are in an "EKG market."
We've
experienced a series of headlines that have sent the market on a yo-yo ride
since we dropped the New Year's ball in Times Square
six months ago. Here are a few of the eye-raising events that have kept
investors on an emotional rollercoaster:
The
S&P 500 index rose 15.2% between February 8 and April 23, according to data
from Yahoo! Finance. Unfortunately, investor sentiment quickly turned and the
index declined 13.7% between April 23 and June 7, according to data from Yahoo!
Finance. On
May 6, the "flash crash" sent the Dow Jones Industrial Average to an
intra-day loss of nearly 1,000 points before making a massive recovery to end the
day down "only" 348 points, according to Portfolio.com. At one point
during the day, the Dow dropped 481 points in 6 minutes and then jumped 502
points just 10 minutes later. An
April 20 explosion on a drilling rig sent as much as 60,000 barrels of oil a
day flowing into the Gulf of Mexico making it
the worst oil spill in American history, according to The New York Times on June 18. A
sovereign debt crisis in Europe sent shivers through world markets and led the
European Union to unveil a nearly $1 trillion loan package designed to backstop
weak countries from defaulting, according to The Wall Street Journal on May 10. Gold
prices hit an all-time high of $1,258 per ounce on June 18, "fueled by
sovereign risk in the euro zone, historically low interest rates, and concern
over the stability of paper currencies," according to CNBC on June 18.
Pop quiz time. After
all these headline-grabbing events, in percentage terms, how much do you think
the S&P 500 index has gone up or down since the end of last year? Brace
yourself. The index has risen a whopping 0.2% between December 31, 2009 and
last Friday.
The up-down EKG between
the bulls and the bears has, like the U.S.
versus Slovenia
in the World Cup, ended in a draw. However, unlike the U.S. versus Slovenia, we still have six months
left in this year to see who wins the yearly "Investment Cup."
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Data
as of 6/18/10
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
| |
Standard & Poor's
500 (Domestic Stocks)
|
2.4%
|
0.2%
|
21.3%
|
-10.0%
|
-1.7%
|
-2.8%
| |
DJ Global ex US
(Foreign Stocks)
|
4.0
|
-6.8
|
16.1
|
-11.4
|
2.2
|
0.5
| |
10-year Treasury Note
(Yield Only)
|
3.2
|
N/A
|
3.8
|
5.1
|
4.1
|
6.0
| |
Gold (per ounce)
|
3.0
|
13.8
|
33.5
|
24.2
|
23.4
|
16.0
| |
DJ-UBS Commodity Index
|
2.7
|
-7.7
|
1.7
|
-10.0
|
-4.5
|
2.2
| |
DJ Equity All REIT TR
Index
|
2.4
|
15.1
|
70.3
|
-7.1
|
2.0
|
11.0
|
Notes: S&P 500, DJ
Global ex US, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends
(gold does not pay a dividend) and the three-, five-, and 10-year returns are
annualized; the DJ Equity All REIT TR Index does include reinvested dividends and
the three-, five-, and 10-year returns are annualized; and the 10-year Treasury
Note is simply the yield at the close of the day on each of the historical time
periods.
Sources: Yahoo! Finance, Barron's,
djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future
results. Indices are unmanaged and
cannot be invested into directly. N/A
means not applicable or not available.
|
HELEN REDDY PROCLAIMED
| |
Helen Reddy proclaimed, "I am woman, hear me roar. In
numbers too big to ignore," back in the early 1970s. Today, those words
are coming true in education, the workplace, and on Wall Street.
In an article
titled, "The End of Men" in the July/August 2010 issue of Atlantic Magazine, author Hanna Rosin
reported some little known statistics about how far women have come in today's
society. How many of these were you aware of?
§
As
of earlier this year, women now outnumber men in the U.S. workforce for the first time
ever.
§
Even
though women outnumber men in the workforce, three-quarters of the jobs lost in
this recession were lost by men.
§
Thirteen
of the 15 job categories projected to grow the fastest over the next decade are
staffed primarily by women.
§
Women
now hold more than 50% of managerial and professional jobs, according to the
Bureau of Labor Statistics.
§
According
to Rosin, women now earn 60% of master's degrees, about 60% of all bachelor's
degrees, about half of all law and medical degrees, and 42% of all MBAs.
§
A
2008 study by researchers at Columbia Business School
and the University of Maryland looked at the top 1,500 U.S. companies
from 1992 to 2006 and discovered that firms that had women in top positions
performed better.
The rising level
of women's educational attainment and workplace prominence will have a profound
impact on the business and investment spheres in the years to come. As part of
our "find a trend and throw yourself in front of it" philosophy, we
will continue to monitor this long-term trend and the ensuing investment
implications.
|
SAVE THE DATE!
| | NothelferMorrone will be hosting an open house in our
new office suite, located at 1605 N. Cedar Crest Boulevard, Suite 515, on
Wednesday, July 14, from 3:00 - 7:00 pm. Look for your invite in the mail soon
and feel free to bring a friend. We hope to see you there! |
|
THINK ABOUT IT
| |
"I shut my eyes
in order to see."
--Paul Gauguin
|
|
 Mary L. Nothelfer, CFP® Emilio
J. Morrone, CPA, CFP®
|
|
P.S. Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.
Securities offered through LPL Financial, Member FINRA/SIPC.
* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
* The DJ Global ex US is an unmanaged group of non-U.S. securities designed to reflect the performance of the global equity securities that have readily available prices.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association.
* The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Past performance does not guarantee future results.
* You cannot invest directly in an index.
* Consult your financial professional before making any investment decision.
* This newsletter was prepared by PEAK.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with "Unsubscribe" in the subject line.
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