ETF/No Load Fund Tracker StatSheet
THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:
Friday, January 30, 2015
A DISAPPOINTING END TO A DISAPPOINTING MONTH…AGAIN
[Chart courtesy of MarketWatch.com]
1. Moving the Markets
Despite being one of the best performing equity markets in 2014, the S&P 500 is off to a choppy and sluggish start to 2015. Slow growth and deflation pressure in Europe have led to more aggressive central bank (ECB) stimulus, while alleged stronger growth prospects in the U.S. may demand a shift in Fed policy in the second half of 2015.
To recap the first month of trading, January finished 3.1% lower, similar to the 3.6% decline we saw in 2014. While we all know the saying “as January goes, so goes the year,” those that left the market after the decline in January 2014 would have missed a 15.5% gain in February through December. In fact, since 1950, a negative return in January accurately predicted negative returns for the year about 50% of the time – basically a coin flip. No one can predict what the markets will do. So, I think the lesson here is, let long-term trends dictate investment decisions, not catchy sayings.
Looking to next week and a fresh month of trading and economic data, we will receive an employment report on Friday. The expectations are for more than 200,000 job additions for the 12th consecutive month. Economists expect 230,000 jobs to have been added in January, and for the unemployment rate to stay at 5.7%. Other reports include the ISM manufacturing and non-manufacturing indexes, personal income and spending, and auto sales.
All of our 10 ETFs in the Spotlight headed south today and only one is showing green numbers for the year. Take a look at the table in section 2.