Market Commentary for the Week of September 6th

From time to time it is a good idea to check in on market activity. 

As such, we are providing a brief market commentary for the week of September 6^th.  Below you will find a recap of various market indexes year to date (YTD) as well as longer durations.  You will see that even with the turmoil that started off the year a majority of the global markets are in positive territory.  This is just another example of how you should invest for the long-term and that over time the markets are resilient.  Patience is the key to long-term investing.  

The Markets

U.S. stocks rose Friday. The advances followed a payrolls report that was lower than predicted, lowering expectations of a September rate hike. For the week, the Dow rose 0.61 percent to close at 18,491.96. The S&P gained 0.56 percent to finish at 2,179.98, and the NASDAQ climbed 0.59 percent to end the week at 5,249.90.

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.

Lower Oil Prices — Of the 79 American companies that have defaulted on corporate debt in the 12 months ending June 30, 45 (i.e. 57 percent) represent companies in the energy and natural resources industries (source: S&P Global Fixed Income Research, BTN Research).

Up Big — Interest payments on our national debt are projected to nearly triple over the next 10 years, rising from $248 billion in fiscal year 2016 to $712 billion in fiscal year 2026 (source: Congressional Budget Office, BTN Research).

Sensitive — The duration of the 30-year T-bond as of Aug. 26 was 21.687 years, i.e., a one percent increase in the current yield of the long bond will reduce the value of the bond by 21.687 percent  (source: Ryan ALM, BTN Research). 

Should you have any questions or concerns please do not hesitate to contact our offices at 888-438-0688 or email at contactus@investmentsok.com.

* 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. SAI# 1586506.1