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Market Commentary | Week of October 28, 2019


The Markets

Optimism on trade talks and encouraging signs in corporate earnings propelled stocks Friday. Encouraging news included better-than-expected third-quarter earnings and a report that Washington was close to finalizing parts of a trade pact with Beijing. The S&P achieved its biggest weekly percentage gain in seven weeks, and the NASDAQ posted its biggest in eight weeks. For the week, the Dow rose 0.70 percent to close at 26,958.06. The S&P gained 1.23 percent to finish at 3,022.55, and the NASDAQ climbed 1.90 percent to end the week at 8,243.12.

Returns Through 10/25/19

1 Week

YTD

1 Year

3 Year

5 Year

Dow Jones Industrials (TR)

0.70

17.81

10.53

16.79

12.63

NASDAQ Composite (PR)

1.90

24.23

12.64

15.98

12.95

S&P 500 (TR)

1.23

22.54

14.02

14.41

11.26

Barclays US Agg Bond (TR)

-0.15

8.17

10.59

2.96

3.07

MSCI EAFE (TR)

1.26

16.15

12.31

8.16

4.64


Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars. 

They’ll Be Running the Show — By the year 2025, more than 50 percent of the U.S. workforce will be millennials or younger. Millennials were born between 1981-97 and will be ages 28-44 in 2025 (source: Inc. Magazine, BTN Research). 

Equity — The average loan-to-value ratio in the U.S. housing market as of June 30, 2008, was 55 percent, (i.e., the average homeowner had home equity of 45 percent). The average loan-to-value ratio in the U.S. housing market as of June 30, 2019, was 36 percent, (i.e., the average homeowner had home equity of 64 percent). (source: Federal Reserve, BTN Research).

Will You Be Financially Ready? — 49 percent of 5,923 workers surveyed in the fourth quarter of 2018 believe they will live to at least age 80. 14 percent of the workers surveyed believe they will live to at least age 100 (source: Transamerica Center for Retirement Studies, BTN Research).


WEEKLY FOCUS – It Pays to Be Wary of Holiday Scams

Bogus charity solicitations, copycat websites and fake shipping offers – thieves often take advantage of the gift-giving season to line their own pockets. But with a few precautions, you can avoid falling victim to these common scams.

Bogus Charities: If you receive an email, postal mail piece or phone call from a charity soliciting donations, before you give, look up the charity on a website that reviews charitable organizations, such as CharityWatch.org or CharityNavigator.org. If you receive a request to donate to a crowdfunding site, such as GoFundMe.com, do not donate to anyone you don’t know, no matter how compelling their story is.

Copycat Websites and Phishing Email: Each year, more and more people buy their gifts online. But be wary of amazing deals you’ll find on social media, in your emails or through web searches. Many websites appear to be legitimate and offer great savings on popular products but are just set up to get your information. Misspellings and typos are telltale signs of fraudulent marketing materials.

In email, always hover your cursor over the sender’s web address to reveal the actual URL. Also type the URL directly into your browser rather than clicking on it and make sure all payment pages have an “s” after http in the URL to ensure the page is secure.

Shipping Scams: To avoid falling victim to shipping scams, always go directly to the shipping company’s website to track your orders. Do not trust emails or postal mail pieces claiming there is a problem with your shipment and requesting a credit card number to ensure your package is delivered. And remember, legitimate delivery people will never come to your door and request payment or a credit card number to ensure delivery of a package.  

If you’re ever in doubt about any offer, it’s best to talk to someone you trust or search for product reviews, warnings and related scams online. Also, consider how you pay for goods and services. Credit cards typically have built-in fraud protection. You can also sign up to receive regular alerts about scams at ftc.gov/scams. To report a scam, go to ftc.gov/complaint.

To learn more ways to protect your personal and financial information from scams and fraudulent activities, call our office today to set up an appointment.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America, Copyright October 2019. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI#2799629.1