Your Company Pension Plan

I am certainly the last person to cry wolf and say the sky is falling but, one day the market will correct.  Might be tomorrow, next month, next quarter or even next year.  Your 401k should have done well over the last few years but

(Excerpted from my commentary of 6/5/17)

The bull market in U.S. stocks is getting really old!

In fact, this bull has been charging, standing, or sitting for more than eight years. In April, it became the second longest bull market in American history, according to CNN Money.

There are some good reasons the stock market in the United States has continued to trend higher. For one, companies have become more profitable. During the first quarter of 2017, companies in the Standard & Poor’s 500 Index reported earnings increased by 14 percent, year-over-year. That was the highest earnings growth rate since 2011, according to FactSet.

In addition, the economy in the United States has been chugging along at a steady pace. CIO Charles Lieberman wrote in Bloomberg View:

“…U.S. economic growth is continuing at a moderate pace, an economic recovery is finally underway in Europe, inflation is under control, corporate profits are rising, and there is some prospect for tax reform and deregulation, even if whatever gets implemented is less than what is really needed. These conditions imply continued growth in corporate profits.”

Last week’s employment report boosted both stock and bond markets. Financial Times opined the report was weak enough to ease pressure on bond rates and strong enough to boost share prices higher.

No one can say with certainty how long a bull market will last. Typically, bull markets are interrupted by corrections – declines in value of 10 percent or more. Historically, bulls have turned into bears, eventually. That’s why it’s important to employ investment strategies that manage risk and preserve capital even when markets are moving higher.

Data as of 6/2/17 1-Week Y-T-D 1-Year 3-Year 5-Year 10-Year
Standard & Poor’s 500 (Domestic Stocks) 1.0% 8.9% 15.9% 8.2% 13.8% 4.7%
Dow Jones Global ex-U.S. 1.2 13.9 17.3 -0.2 7.0 -1.1
10-year Treasury Note (Yield Only) 2.2 NA 1.8 2.6 1.5 4.9
Gold (per ounce) 0.8 10.0 5.2 0.7 -4.9 6.6
Bloomberg Commodity Index -2.0 -5.9 -5.1 -14.8 -8.4 -7.3
DJ Equity All REIT Total Return Index 1.1 4.5 6.1 9.1 11.8 5.1
S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Would it not be to your benefit to have every month a breakdown of the funds in your company pension plan to make sure your 401k is invested correctly every month.  Our clients receive a listing of the funds available in their specific plan as shown below.  This one for Verizon Wireless 401k plan for May 2017.

MichaelSchwartzPortfolios2017-05-19_Page_1

For additional information on how we can help you get a leg up on your retirement savings, please contact my office at 215-886-2122

 

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