CSA Weekly Newsletter | Week In Review 8.20.2014

CSA Weekly Newsletter | Week In Review 8.20.2014

CSA Weekly Newsletter | Week In Review 8.20.2014

Here is your weekly CSA (Common Sense Advisor) newsletter and week in review.

Trending Indicators

US Stock Market              Trending Down

Canadian Stk Mkt             Trending Up

US Bond Yields                  Yields Trending Down

Jeff’s Commentary:

The U.S. equity markets recovered slightly last week with the S&P 500 gaining 1.20% while the growth-oriented Russell 2000 only increased .85%. For those keeping score the year-to-date gain/loss for the S&P 500 is +5.77% and -1.91% for the Russell.

Of course, looking at weekly numbers can give us a distorted picture. Over the last 30 days, the S&P 500 is down .34% as it continues to fight back from its most recent 3.9% dip (drawdown). Bonds, on the other hand, continue to power ahead. My favorite bond fund is now up 7.26% YTD.

The financial news media continues to promote the Bull market, but I think we all realize that we are in its late stages. It can continue on for several months or even years or it can end today. There’s no way to know for sure, which is why applying systematic risk management processes are so important.

I was reading about the crash in 1987 where the market declined over 22% in a single day.

I’m not expecting anything like that happening, but neither did investors and their advisors back then. I know because I was there, training with an EdwardJones broker in Minden, LA. The volume was so heavy that the machines couldn’t even keep up.

The lesson: things can change quickly.

On a personal note, I was able to spend a couple of days with my father in Minnesota late last week. He is 80-years old and has dementia.

I greatly value all the things that I have learned from him over the years. He’s the one that passed on the entrepreneurial drive to me.

And he always emphasized doing the right thing—to the point that he chose to be fired from a well-paying job instead of cooking the books.

There is a lot I can still learn from him. Thanks dad!

 

YTD % Wkly Chnge % Most Recent DD% YTDMaxDD
Equities* DJIA 0.52 0.65% 4.5% 7.3%
SP500 5.77 1.20% 3.9% 5.8%
NDX 6.9 2.10% 3.4% 8.2%
SP400 3.97 1.20% 5.5% 6.9%
RUT -1.91 0.85% 9.3% 9.3%
Canadian OSPTX 12.75 0.96% 2.6% 3.6%
Bonds* TLT 14.85 1.19% 1.7% 3.6%
IEF 5.45 0.54% 0.05% 1.72%
*does not take into account dividends/interest
US Treasury Yields Wkly Change
2-Year 0.41% -0.06%
10-Year 2.34% -0.16%
30-Year 3.14% -0.14%

Have a wonderful and Blessed week!

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