Weekly Market
Commentary
April 10,
2017
The
Markets
U.S. stock
markets are sending mixed signals.
If you look at the performance
of the CBOE Volatility Index (a.k.a. the VIX or fear gauge), which is a measure
of market expectations for volatility in the near future, it appears all is
well and investors expect no unexpected events. Barron’s explained:
“…which brings us back to a central
fact: the absence of volatility. The first quarter was historic for the CBOE
Volatility Index...It ranged from 10.6 to 13.1, and its average level was
11.69, the lowest in an initial quarter since the VIX was born in 1990 and the
second-lowest quarterly average since the 11.3 of 2006’s final three months...”
The VIX remained stubbornly low
last week, too, despite weaker than expected employment news, wage news, and generally
flat economic data.
If you turn your eyes to the
number of companies whose shares have reached new highs, you might form a
different opinion about the steadiness of stock markets. Barron’s wrote:
“…the squadron of stocks pushing
52-week highs at the New York Stock Exchange has shrunk from 338 on March 1 to
72 late last week…But, if the planet really is enjoying a synchronized economic
recovery, why are we lunging at these stocks as if they were the only game in
town?”
It’s difficult to know how to
factor in last week’s air strikes against Syria, which registered as a tiny
blip on the U.S. stock market radar. Some analysts say that’s as it should be.
The real drivers of market performance in 2017 will be tax reform and global
monetary policy. Others are concerned involvement in Syria could lead to a
reshuffling of political priorities and delay progress on domestic legislation.
The markets have been on high
center for the past few weeks—floundering in a trading range. They may finally
have their true test as corporate earnings begin trickling out over the next
week. This earnings session will be the first quarter since President Trump
took office. Will this earnings season be the catalyst that breathes new life
into the markets, or the jolt that knocks it off its high horse? Stay tuned.
In times
like these, diversification is critical.
Data as of 4/7/17
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard
& Poor's 500 (Domestic Stocks)
|
-0.3%
|
5.2%
|
15.4%
|
8.5%
|
11.3%
|
5.0%
|
|
Dow
Jones Global ex-U.S.
|
-0.4
|
7.0
|
13.2
|
-1.4
|
2.8
|
-1.2
|
|
10-year
Treasury Note (Yield Only)
|
2.4
|
NA
|
1.7
|
2.7
|
2.0
|
4.7
|
|
Gold
(per ounce)
|
1.7
|
9.3
|
2.0
|
-0.8
|
-5.1
|
6.5
|
|
Bloomberg
Commodity Index
|
0.6
|
-1.9
|
10.8
|
-13.9
|
-9.5
|
-6.7
|
|
DJ
Equity All REIT Total Return Index
|
0.9
|
3.5
|
7.3
|
10.7
|
11.0
|
4.9
|
S&P
500, Dow Jones Global ex-US, Gold, Bloomberg 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 Total Return 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.
pulling ink out of the air. Air pollution
is one of the biggest environmental and human health threats in the world,
according to a 2016 World Health
Organization report:
Engineer Anirudh Sharma was
familiar with the problem. The MIT Media Lab student was walking down a street
in Mumbai, reported MSN.com, when he
noticed that diesel exhaust from passing buses and cars was staining his
clothes black.
The experience sparked an idea:
Was it possible to recycle air pollution and use it to make something useful?
Like ink?
During the past few years,
Sharma has developed technology to create the world’s first line of art
supplies derived from air pollution. He and his team have built an exhaust
filter that captures carbon soot as it is emitted from cars, generators, and
ferries. Once pollution has been gathered, impurities are removed. The
remaining soot is ground into pigment and mixed with vegetable oil to create
inks, markers, and paints.
One artist commented, “I don’t
know if it’s the pollution, but the quality of the ink is really special…It’s
pitch black, really thick and dries incredibly quickly.”
Last month, the first Clean Air
Gallery opened in London. It features work by artists from London, Glasgow,
Leeds, Southampton, and Nottingham – some of the most polluted cities in the
United Kingdom – using Sharma’s ink. Other exhibitions are expected to open in
Berlin, Singapore, and New York.
Weekly
Focus – Think About It
“A mind which really lays hold
of a subject is not easily detached from it.”
--Ida Tarbell, Investigative
journalism pioneer
Best regards,
Womack Investment Advisers, Inc.
WOMACK
INVESTMENT ADVISERS, INC.
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 500 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 500 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717
Website: www.womackadvisers.com
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.
*
These views are those of Peak Advisor Alliance, and not the presenting
Representative or the Representative’s Broker/Dealer, and should not be
construed as investment advice.
*
This newsletter was prepared by Peak Advisor Alliance. Peak Advisor Alliance is
not affiliated with the named broker/dealer.
*
Government bonds and Treasury Bills are guaranteed by the U.S. government as to
the timely payment of principal and interest and, if held to maturity, offer a
fixed rate of return and fixed principal value.
However, the value of fund shares is not guaranteed and will fluctuate.
*
Corporate bonds are considered higher risk than government bonds but normally offer
a higher yield and are subject to market, interest rate and credit risk as well
as additional risks based on the quality of issuer coupon rate, price, yield,
maturity, and redemption features.
*
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities
considered to be representative of the stock market in general. You cannot
invest directly in this index.
*
All indices referenced are unmanaged. Unmanaged index returns do not reflect
fees, expenses, or sales charges. Index performance is not indicative of the
performance of any investment.
*
The Dow Jones Global ex-U.S. Index covers approximately 95% of the market
capitalization of the 45 developed and emerging countries included in the
Index.
*
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 afternoon gold price as reported by the London Bullion
Market Association. The gold price is set twice daily by the London Gold Fixing
Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy
ounce.
*
The Bloomberg 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 Total Return 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.
*
Economic forecasts set forth may not develop as predicted and there can be no
guarantee that strategies promoted will be successful.
*
Past performance does not guarantee future results. Investing involves risk,
including loss of principal.
*
You cannot invest directly in an index.
*
Consult your financial professional before making any investment decision.
*
Stock investing involves risk including loss of principal.
* To unsubscribe from the Womack
Weekly Commentary please reply to this e-mail with “Unsubscribe” in the subject
line, or write us at raegan@womackadvisers.com
Sources:
http://www.barrons.com/articles/low-vix-may-mask-stock-risks-1491625249?mod=BOL_hp_we_columns (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-10-17_Barrons-Low_VIX_may_Mask_Stock_Risks-Footnote_2.pdf)
(click
on U.S. & Intl Recaps and select "The job madness of March") (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-10-17_Barrons-The_Job_Madness_of_March-Footnote_3.pdf)
http://www.barrons.com/articles/are-stocks-finally-topping-out-1491627050?mod=BOL_hp_we_columns (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-10-17_Barrons-Are_Stocks_Finally_Topping_Out-Footnote_4.pdf)
http://www.barrons.com/articles/do-airstrikes-signal-new-priorities-for-trump-1491627084?mod=BOL_hp_we_columns (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-10-17_Barrons-Do_Airstrikes_Signal_New_Priorities_for_Trump-Footnote_5.pdf)
http://apps.who.int/iris/bitstream/10665/250141/1/9789241511353-eng.pdf?ua=1 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-10-17_WorldHealthOrganization-Report-Ambient_Air_Pollution-Footnote_6.pdf)
Comments
Post a Comment