Explore Our
“Off The Wall” Blog
Unique, straight-forward, unfiltered opinion on topics of concern for individuals with newfound wealth.
All’s quiet in the stock markets – More good news
Make it 19 straight weeks of stronger US economic data. First, unemployment claims for the first week of February declined significantly – making a new recent low. Then there was a package of economic readings that suggested February payroll employment may increase by +175k. Finally, a University of Michigan jobs survey for the first half of February surged to the highest reading since 1983’s strong recovery.
Not bad.
I try to stay away from making political statements unless they have some sort of economic relevance, but I think that the Republican primary season and debates between the candidates cause the bad economic news to be highlighted more than the good news. I think that’s one of the reasons why people aren’t aware that there have been 19 straight weeks of improving economic news.
For the week, the Dow Jones Industrial Average (DJIA) lost -0.47% to 12,801, the Standard & Poor’s 500 Index (S&P 500) lost 0.17% to 1,343 and the Nasdaq Composite Index lost 0.06% to 2,904. The Russell 2000 Index, which tracks the performance of small capitalization stocks, lost 2.14% to 813.
I’ve been reading about what amounts to a renaissance in U.S. manufacturing. Investor’s Business Daily had a cover story this weekend titled “US manufacturing jobs, output, and profits up nicely.”
Also, I read a report that stated US vehicle exports in 2015 are expected to increase by almost 50% from 2010. I guess American cars are becoming cool again – globally.
Finally, if you haven’t seen Clint Eastwood’s powerful advertisement for Chrysler, check it out on the internet. I know there is some noise about it being political – whatever – that’s not what I want to draw your attention to. What is important is that it reached the largest television audience ever…EVER. And the message was about the rising optimism surrounding US manufacturing. A record number of people don’t watch or seek out TV commercials on the internet that don’t inspire them or that they don’t believe.
The concerns of a third double-dip recession (note the word “concerns” since we have had two scares yet no double-dip) seems very, very small right now, further strengthening our position that investors that have a solid financial plan along with an investment strategy that corresponds to that plan are often spared the whipsaw of the market and the anxiety that goes along with it.
Generally, unless your need for short term liquidity has changed, it never makes sense to trade or invest around emotion – positive or negative. People who do this run the risk of buying high and selling low – which is a no-no.
IMPORTANT NOTE: Due to industry regulations, comments are not permitted on this blog. If you would like to contact the author, please email us at info@monumentwm.com.
Securities and Financial Planning offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. Stock investing involves risk including loss of principal. The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries, and widely held by individuals and institutional investors. The Standard & Poor’s 500 Stock Index (S&P 500) is an unmanaged capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The NASDAQ Composite Index measures all domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. The Russell 2000 Small Stock Index is an unmanaged index generally representative of the 2000 smallest companies in the Russell 3000 Index. The Russell 2000 is an unmanaged index generally comprised of companies with lower price-to-book ratios and lower forecasted growth values.
David B. Armstrong, CFA
President & Co-Founder
Dave got into the industry when he discovered his passion for finance in his mid-20’s. He’s a combat veteran and served as an officer in the United States Marines Corps on both active duty and in the reserves, retiring at the rank of Lieutenant Colonel. While serving on active duty, Dave was unable to spend money on deployments, so he became a self-taught investor. Along with a few bucks cash as a bouncer, his investing performance grew to be good....
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Monument Capital Management, LLC [“Monument”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Monument. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. No amount of prior experience or success should be construed that a certain level of results or satisfaction will be achieved if Monument is engaged, or continues to be engaged, to provide investment advisory services. Monument is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice.
A copy of the Monument’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.monumentwealthmanagement.com/disclosures. Please Note: Monument does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Monument’s website or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your Monument account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your Monument accounts; and, (3) a description of each comparative benchmark/index is available upon request.
Please Remember: If you are a Monument client, please contact Monument, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.