Markets “In a Nutshell” for March 19, 2019

Investment Week at a Glance

Another up week for stocks. The Dow Jones Industrial average gained 1.6% while the S&P 500 was up 2.9%. The New York Stock Exchange Composite (2,000 stocks) rose 2.4%. The “average investor’s index” (Value Line index) gained 1.9%. Foreign stocks (DJ Global ex U.S.) were up 2.9%. Bond yields dropped (bond prices up) as the 10 year Treasury ended at 2.59%. (Data sources: Barron’s Financial, Wall Street Journal)

This bull stock market has room to run?

Some think that the bull (upward moving stock market) market that has passed 10 years old is ripe for a fall. Not so for James Trennert, the chairman of Strategas. Mr. Trennert, in a Wall Street Journal op-ed, makes the case that there is very little optimism in today’s market. That lack of “exuberance” can drive the market higher at least until “2020, or perhaps 2024” according to Mr. Trennert.

A $billion here, a $billion there

If Bernie Sanders gets his proposed tax plan passed, the uber-rich are looking at some hefty taxes. In a CNBC article, the 5 wealthiest American would see doubling of their estate taxes under Sander’s plan. Jeff Bezos, Amazon.com’s founder would pay $101 billion in estate tax while Microsoft’s founder Bill Gates would have to pony up $74 billion. Sander’s argument for his plan is nothing new. As far back as 700 B.C. there has been some type of “death” or “inheritance” tax designed to temper the passing on of large estates to the next generation. In the U.S., estate taxes were first imposed as part of the Stamp Act of 1797.

Still looking for Dividend Stocks?

With the stock market’s almost unimpeded rise the last number of years, less focus has been placed on dividends. Yet for those investors who still look for consistent income from their stock investments, Barron’s Financial (3/4/19) list 10 stocks with “safe, generous dividends.” Among the 10 are AbbVie (pharmaceuticals) yielding 5.3%. Following AbbVie is Broadcom (Telecom) at a 3.9% yield, and energy companies such as Phillips 66 at 3.3%, and Marathon Petroleum at 3.3%.

Quiz:

According to FHFA, which of the following states showed the biggest increase in home values in 2018?

a. Ohio

b. New York

c. California

d. Idaho

e. Virginia

Answer is below…

 

Have a good week!

 

Answer to quiz:

d. Idaho, up to 11.9%