😃 The market (S&P 500) had a great week, did you?
Market Conditions: Week of March 11- 15
📈 S&P 500: +2.59%
The market was back in the green this week after last week, which was its first week of negative performance for 2019. There was just one negative day this week, a quick dip on Thursday when concerns resumed about the China trade fight and a lack of resolution, but today confidence in a resolution was back, and the strong week resumed. The NASDAQ was also up this week, +3.5%, as was the Dow Jones +1.5%.
💡🤓 Expert Insight: Warren Buffett says, “Buy the S&P 500 for $10, $20, just keep buying the S&P 500 and forget about all the other nonsense that’s being sold to you.”
📈 Bonds: +0.20%
The Bonds BND Index was up 0.20%, which is actually quite a strong week for bonds. Imagine if they returned 0.20% every week for a year. They’d be up about +10% for the year, which almost never happens. Remember that risk-off investments like government bonds and high quality bonds (not “junk” bonds) typically aren’t “correlated” to the majority of the market (they don’t move up and down at the same time, meanwhile most other investments do). Sometimes when the market is up, bonds are down, and vice versa. But this week, bonds were up too.
💡🤓 Expert Insight: While bonds are often touted as a less risky alternative to stocks in the short-term, Warren Buffett says if he had to choose, he would choose stocks over bonds in a minute as a long term (10+ years) investor.
😐 Gold: 0.10%
Gold (GLD ETF) performance was lackluster. Gold is another one of the few investments that is typically not correlated to the rest of the market. It also often moves in a different direction than the rest of the market. This week, it was up, but not much.
Performance Highlights from the iBillionaire App
😃 Highlight of the Week: MercadoLibre +8.55%
MercadoLibre stock rose a lot this week after news that the company, the Amazon/Venmo/Ebay of South America, had raised $1.85 billion. And, $750 million of that came from PayPal. In the first three days of the week the stock gained +12.98%, but then yesterday and today it pulled back a little, likely partly because a stock analyst downgraded it.
😳 Lowlight of the Week: Facebook -1.97%
Facbeook started the week strong, up +2.22% for the first few days. Then, there was a bunch of bad news. Most significantly for the company’s stock were two things. First was the news that the government is going to investigate its relationships with device makers and their data-sharing arrangements. The stock dropped -1.85% after that news. Then today, news hit that the Chief Product Officer is leaving the company, causing a further drop of about -2%. Also worth mentioning, the CPO departure calls into question Facebook’s new focus on private messaging and combining all of its apps. Also notable, Facebook (and some parts of Instagram) experienced its longest outage ever this week, and Facebook is being widely criticized for not taking down a livestream of a terrorist attack in New Zealand until it was too late.
Have a great weekend!
Important note: Performance as of 3PM on March 15, 2019. The information included in this publication is for educational purposes only. iBillionaire gathers its data from sources it considers reliable. However, iBillionaire does not guarantee the accuracy or completeness of the information provided in this publication.
The opinions presented reflect the current judgment of the authors and are subject to change. iBillionaire makes no warranties, express or implied, regarding the accuracy of this information or the subjective opinions expressed by the authors. Officers, directors, employees and affiliates may have positions in the securities of companies discussed.
The data included in this publication cannot and is not intended to, in and of itself, be used to determine which securities to buy or sell, or when to buy or sell any security or investment, or represent directly or indirectly, that any graph, chart, formula or other device being offered will assist any person in making his own decisions as to which securities to buy, sell, or when to buy or sell them.
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