Weekly Market
Commentary
May 1,
2017
The Markets
It was a good week to own stocks.
Not
all financial news was good news last week, but that didn’t prevent U.S. stock
markets from moving higher. Barron’s
reported on the good news:
“This
past week, welcome political news from Europe, a batch of stellar
corporate-earnings reports, and a concrete tax proposal to cut corporate and
some personal rates sharply gave the bull even more reasons to rally. By
Friday’s close, the Dow Jones industrials and other market measures were
standing near all-time highs.”
Overall,
corporate earnings were quite strong during the first quarter of 2017,
according to FactSet. With 58 percent
of the companies in the Standard & Poor’s 500 Index reporting in, earnings
are showing double-digit growth for the first time since 2011.
That’s exhilarating news for investors.
Economists
had less to celebrate. The Commerce
Department’s first estimate indicated the U.S. economy got off to a slow
start during 2017. Gross domestic product (GDP), which measures the value of all
goods and services produced, came in below expectations and grew at the slowest
rate in three years. Bloomberg
reported:
“The
GDP slowdown owes partly to transitory forces such as warm weather and
volatility in inventories, which supports forecasts for a rebound as high
confidence among companies and consumers and a solid job market underpin
growth. Even so, the weakness at car dealers could weigh on expansion, and
further gains in business investment could depend on the extent of policy
support such as tax cuts.”
Keep
an eye on Congress and the Federal Reserve. Changing fiscal and monetary
policies are expected to have a significant influence on markets and the
economy.
Data as of
4/28/17
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard & Poor's 500 (Domestic Stocks)
|
1.5%
|
6.5%
|
14.9%
|
8.5%
|
11.3%
|
4.9%
|
|
Dow Jones Global ex-U.S.
|
2.3
|
9.5
|
9.6
|
-0.7
|
3.1
|
-1.1
|
|
10-year Treasury Note (Yield Only)
|
2.3
|
NA
|
1.8
|
2.7
|
1.9
|
4.6
|
|
Gold (per ounce)
|
-1.2
|
9.3
|
0.8
|
-0.8
|
-5.2
|
6.5
|
|
Bloomberg Commodity Index
|
0.1
|
-4.0
|
-1.8
|
-15.4
|
-9.9
|
-7.0
|
|
DJ Equity All REIT Total
Return Index
|
-2.3
|
3.0
|
6.8
|
9.8
|
9.8
|
5.0
|
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.
what did you say? If you find yourself tuning-out in loud restaurants,
asking people to repeat themselves frequently, or cupping an ear in an effort
to better understand what a friend or colleague is saying, then you may be
interested to learn that hearing loss is one of the most prevalent health
issues for older Americans. It ranks third, right behind arthritis and heart
disease, according to the Hearing Loss
Association of America (HLAA).
Hearing
loss isn’t just an issue for older Americans, though. Twenty percent of
American teenagers experience hearing loss, and it’s a significant issue for
combat soldiers and veterans. The
Washington Post reported:
“A
study by the Journal of General Internal
Medicine, which covered over 90,000 veterans of Afghanistan and Iraq
seeking VA care from fiscal 2006-2007, may serve as a general guide. Among male
veterans seeking VA care, 16.4 percent to 26.6 percent suffer from serious
hearing loss and tinnitus, and 7.3 percent to 13.4 percent of female veterans
are affected. How much of this is combat-related or due to environmental
factors such as background noise, training, and even medication is unknown.”
Remarkably,
many people ignore their hearing loss. Just 16 percent of Americans (age 69 or
younger) with hearing issues use hearing devices. It’s a decision that can have
serious consequences since studies have linked hearing loss and cognitive
decline, reported NPR.
A
new generation of hearing devices, called personal sound amplification products
(PSAPs), may help reduce the stigma attached to wearing hearing aids. They’re
designed to look like stylish fashion accessories or ear buds, and they’re controlled
with smartphone apps.
The
real selling point may prove to be that PSAPs are far less expensive than
traditional hearing aids.
Weekly
Focus – Think About It
“Most of the
successful people I've known are the ones who do more listening than talking.”
--Bernard Baruch, American financier and
statesman
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
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*
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
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Sources:
http://www.barrons.com/articles/poll-top-money-managers-favor-tech-finance-1493438722
(or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/05-01-17_Barrons-Poll-Top_Money_Managers_Favor_Tech_Finance-Footnote_1.pdf)
https://insight.factset.com/hubfs/Resources/Research%20Desk/Earnings%20Insight/EarningsInsight_042817.pdf (Pages 1-2)
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