“Peek of the Week”
Market Commentary
Market Commentary
December 9, 2019
The Markets
Ahh,
the power of distraction.
On
Friday, the unemployment report flashed its numbers like a hair model in a
shampoo commercial. The Bureau of Labor Statistics reported 266,000 new
jobs were created in November. That was better than expected even after
deducting the 40,000-plus General Motors employees returning to work, reported CNBC.
The
sign of economic strength helped major U.S. stock indices recover from losses suffered
earlier in the week – mostly.
The
week got off to a rough start when President Trump indicated there was little
urgency to resolving the trade dispute with China. The statement upset
expectations a phase one trade deal would be completed before December 15.
That’s the date the United States is scheduled to put additional tariffs on
Chinese consumer goods. New tariffs could inspire additional actions by the
Chinese government that affect economic growth in the United States.
To
date, U.S. economic growth has slowed from 3.1 percent in the first quarter of
2019 to 1.9 percent in the third quarter.
The
slowdown was caused, in part, by Chinese tariffs on American products. Tariffs have
had a negative effect on manufacturing and agriculture, as well as other
sectors of the market. Trade uncertainty also has led to a decline in business investment.
When business investment drops so does the economy’s growth potential. The main
engine behind U.S. economic growth has been and remains the American people.
Consumer spending accounted for 68 percent of U.S. economic growth in the third
quarter.
The
Standard & Poor’s 500 Index finished the week in positive territory. The
Dow Jones Industrial Average and Nasdaq Composite finished down 0.1 percent.
Data as of
12/6/19
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
Standard & Poor's 500 (Domestic Stocks)
|
0.2%
|
25.5%
|
16.7%
|
12.5%
|
8.8%
|
11.1%
|
Dow Jones Global ex-U.S.
|
0.5
|
14.2
|
11.6
|
6.4
|
2.1
|
2.4
|
10-year Treasury Note (Yield Only)
|
1.8
|
NA
|
2.9
|
2.4
|
2.3
|
3.5
|
Gold (per ounce)
|
0.0
|
13.9
|
17.5
|
7.6
|
4.1
|
2.5
|
Bloomberg Commodity Index
|
1.5
|
2.0
|
-4.9
|
-3.9
|
-6.7
|
-5.1
|
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; 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, MarketWatch, 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.
the
evolving etiquette of social media. Social media etiquette makes remembering when
to use the little fork on the right – you know, the one next to the two knives and
spoon (the oyster fork) – seem like a snap.
When social media platforms were gaining
popularity, they offered an opportunity to reconnect and stay in touch with
friends and family. During the past decade, many people joined platforms and
built networks. They also started to engage in some unwelcome behaviors.
Sometimes, social media is a place where people:
“…can say mean things without showing their
face, discriminate with little consequence, and spill details nobody truly
wants to hear,” explained Influence.co. “…it’s vital for people to
remember that social media is meant to bring people together and that our
online behavior can quickly come between us.”
To make it easier to understand which
behaviors these are, the organization conducted a survey. The top digital
don’ts included:
1.
Bullying others in comments (91.1 percent)
2.
Sharing discriminatory content (89.2 percent)
3.
Posting fake news (88.8 percent)
4.
Making passive-aggressive posts (78.5 percent)
5.
Oversharing personal details (77.4 percent)
6.
Complaining about a partner (75.8 percent)
7.
Giving medical advice (48.3 percent)
8.
Excessive hashtag use (33.8 percent)
It’s also a poor idea to post content about
another person without their permission. One in 10 respondents had ended a
friendship over it. Finally, many people find it irritating when asked to delay
eating a meal so a dinner companion can photograph it.
It’s food for thought.
Weekly Focus – Think About It
“One of the
big no-no’s in cyberspace is that you do not go into a social activity, a chat
group, or something like that, and start advertising or selling things. This
etiquette rule is an attempt to separate one's social life, which should be
pure enjoyment and relaxation, from the pressures of work.”
--Judith Martin, a.k.a. Miss Manners, Etiquette
authority
Best regards,
Leif
M. Hagen
Leif M. Hagen, CLU, ChFC
Leif M. Hagen, CLU, ChFC
LPL
Financial Advisor
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Securities
offered through LPL Financial, Member FINRA/SIPC.
*
These views are those of Carson Coaching, and not the presenting
Representative, the Representative’s Broker/Dealer, or Registered Investment
Advisor, and should not be construed as investment advice.
*
This newsletter was prepared by Carson Coaching. Carson Coaching is not
affiliated with the named firm.
*
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 indexes referenced are unmanaged. The volatility of indexes could be
materially different from that of a client’s portfolio. Unmanaged index returns
do not reflect fees, expenses, or sales charges. Index performance is not
indicative of the performance of any investment. You cannot invest directly in
an index.
*
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.
*
The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an
index representing 30 stock of companies maintained and reviewed by the editors
of The Wall Street Journal.
*
The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ
system.
*
International investing involves special risks such as currency fluctuation and
political instability and may not be suitable for all investors. These risks
are often heightened for investments in emerging markets.
*
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.
* The foregoing information has
been obtained from sources considered to be reliable, but we do not guarantee
it is accurate or complete.
*
There is no guarantee a diversified portfolio will enhance overall returns or
outperform a non-diversified portfolio. Diversification does not protect
against market risk.
*
Asset allocation does not ensure a profit or protect against a loss.
*
Consult your financial professional before making any investment decision.
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Sources:
https://www.barrons.com/articles/dow-jones-industrial-average-ends-week-lower-despite-strong-jobs-report-51575684786?mod=hp_DAY_3 (or
go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/12-09-19_Barrons-The_Jobs_Numbers_were_Great-The_Dow_Still_Finished_Down_for_the_Week-Footnote_3.pdf)
