U.S. equity markets tumbled last week, with the S&P 500 down more than 4.5%, and the Russell 2000 index of small company stocks falling 5.50%. Both indices hit all time highs in late summer/early fall, but since then the ride has gotten rough. Since August 31st of this year, the Russell 2000 index is down almost 17% and the S&P 500 has fallen by about 9%.
Young Research’s maximum safety Dynamic Maximizers® portfolio is up about 7 basis points over the same time period. The Dynamic Maximizers® portfolio has not experienced a down year this century, and we anticipate another up year in 2018.
The WSJ has more on last week’s sell-off in stocks.
Investors’ retreat from U.S. stocks turned into another rout Friday, leaving major indexes down more than 4% for the week as the November jobs report failed to offset persistent anxiety over the U.S.-China trade dispute and the global economic outlook.
The slide pulled the Dow Jones Industrial Average down as much as 663 points and put the blue-chip index and the S&P 500 back into the red for the year. The indexes, along with the Nasdaq Composite, suffered their biggest one-week point and percentage declines since March, and all three are off to their worst start to a December since 2008.
Stocks opened with slight gains but steadily declined throughout the session as the jobs data showed wage growth matched the highest rate in nearly a decade, but U.S. employers slowed their hiring in November.
Read more here.
Jeremy Jones, CFA
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