Market Data Bank

1Q 2018


Click image to enlarge

CORRECTION, RECOVERY, FRACTIONAL LOSS

The S&P 500 suffered a 10.2% correction in early February before recovering to post a 0.8% loss in the first quarter of 2018. The fractional loss followed a 6.6% gain in the fourth quarter of 2017, 4.5% in the third quarter, 3.1% in the second quarter and 6.1% in the first quarter of 2017. Volatility reappeared after a two-year lull.


Click image to enlarge

STOCKS NEARLY DOUBLED IN FIVE YEARS

Over the 10 years shown, $1 invested in the S&P 500 grew to $2.48. From the low on March 9, 2009, $1 in stocks grew to $4.72 -- a 372% return! What makes America exceptional among all nations has been unfolding in plain sight for 10 years, but it is always difficult to recognize it the moment it is happening.


Click image to enlarge

SECTORS SHOW GROWING APPETITE FOR RISK

The technology sector was again the standout in the 12 months ended March 31, 2018. The laggards -- telecom, consumer staples, energy, and utilities -- are considered more defensive. This is a sign of a gradual shift in sentiment toward riskier assets.


Click image to enlarge

INDEXES TRACKING 13 ASSET CLASSES

The S&P 500 index's total return of 87% in the five years through March 31, 2018, was more than double the 40% return on the S&P global stock index excluding U.S. stocks. For the first time in years, global growth accompanied the long U.S. expansion, boosting returns of a portfolio broadly diversified across the globe.


Click image to enlarge

APPROACHING THE LONGEST BOOM

At 107-months old, this is the second-longest expansion in modern U.S. history, surpassing the 106-month long expansion of the 1960s, and just 13 months shy of the 120-month boom of the 1990s -- the longest ever. With fundamentals strong, this is likely to become the longest in post-War America.


Click image to enlarge

FED PLANS INTEREST RATE HIKES

After hiking rates in March, the Fed said three more quarter-point hikes would follow in 2018. Interest rate cycles are slow. The most recent 24 years were marked by falling rates, while rates fell the previous 24 years. A new rising recently began. Rising bond yields often coincided with bull markets in stocks in the past.

Disclaimer

Howard Materetsky, Ira S. Materetsky CFP®, Matt Welsh and Mark Furman offer securities and advisory services through Royal Alliance Associates, Inc. Member FINRA/SIPC and a registered investment advisor. Gary S. Haft offers securities through Royal Alliance Associates, Inc. Materetsky Financial Group is not affiliated with Royal Alliance Associates, Inc. or registered as a broker dealer or investment advisor. In this regard, this communication is strictly intended for individuals residing in the states of AL, AZ, CA, CO, CT, DE, FL, GA, HI, IL, MA, MD, ME, MI, MN, MO, NC, NH, NJ, NM, NV, NY, OH, PA, RI, SC, VA, WA, WI, WV, and WY. No offers may be made or accepted from any resident outside the specific states referenced.
For information concerning the licensing status or disciplinary history of a broker-dealer, investment adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.

 

To learn more about the professional history of our financial advisor(s), please visit FINRA's BrokerCheck.

Contact Info

Materetsky Financial Group
2240 Woolbright Road Suite 354
Boynton Beach FL 33426

Phone: 561-735-9227
Fax: 561-735-9815
Email: help@materetsky.com

Materetsky Financial Group
6800 Jericho Turnpike Suite 120W
Syosset NY 11791

Phone: 516-227-1111
Fax: 516-227-1144
Email: help@materetsky.com