EZ Bites--Week Ending 2/7/20

HELP FOR YOUR IRA OR OTHER INVESTMENTS:

The EZTracker ETF newsletter is a great tool if you have an IRA or other investments outside of your 401k. We use the same methodology that we use for our company specific 401k newsletters but we use ETFs rather than mutual funds. In 2019, our Aggressive portfolio returned 25.45% and our Moderate Portfolio returned 20.64%!

Our newsletter helps you sift through thousands of ETF options and has identified approximately 500 ETF’s that fall within certain liquidity guidelines. We help categorize each of these choices into their respective industry and focus groups, while ranking them according to our proprietary model, allowing you to be in control of your financial future easily and efficiently.

Get a free copy by sending us an email at [email protected] or visiting www.eztracker401k.com

----------------------------------------------------------------------------------------

EZ BITES:

For the Week:

DOW:+3.0%% (YTD 2.0%)

NASDAQ:+4.0% (+6.1%)

S&P:+3.2% (3.0%)

With the background of the coronavirus from China continuing to threaten becoming a pandemic (with over 30,000 people infected and 800 deaths so far), domestic equity indices showed resilience and strength as investors drew support from positive fundamentals - as well as steps taken by the Chinese government - spurring the markets to new highs. The Nasdaq Composite outperformed with a 4.0% weekly gain, followed by the S&P 500 (+3.2%), Dow Jones Industrial Average (+3.0%),

Sectors: Ten of the 11 S&P 500 sectors posted advances on the week, especially bullish and cyclical indicators Information Technology (+4.5%) and Materials (+4.2%).  Defensive sector Utilities (-0.6%) was the lone one posting a loss for the week.

Economic #s: The markets took their cue from the positive economic results released across the board during the week:

• Employment data showed that nonfarm payrolls grow by 225,000 in January (exceeding the Briefing.com consensus of 164,000);
• January ISM Manufacturing Index returned into expansion territory after five straight months of contraction,
• January ISM Non-Manufacturing Index accelerated for the second straight month; and
• weekly jobless claims fell to their lowest level in nine months.

Coronavirus: Although the impact from the Wuhan coronavirus remains unclear and the multinational threat remains, its economic and manufacturing impact was somewhat mitigated as China injected material liquidity into its markets.  Moreover, the Chinese government announced it will cut tariffs by 50% on $75 billion of US imports by mid-February, and reports indicated that the People's Bank of China is planning additional stimulus that will encourage lending activity.  All of these steps helped investor confidence.

Corporate News: Tesla (TSLA) was arguably the story stock of the week after shares rose as much as 48.9% in a span of less than two days in a short squeeze. Shares finished the week higher by 15.0%. Separately, Alphabet (GOOG) reported revenue that was below expectations, but shares overcame initial weakness.   Walt Disney (DIS) and Nike (NKE) announced that the coronavirus would have a negative impact on financial results, but the market is optimistic it won't get worse. Apple (APPL) for its part temporarily closed its China stores but shares still rose more than 3% this week.

Fixed Income: U.S. Treasuries finished the week lower, driving yields higher across the curve. The 2-yr yield increased seven basis points to 1.39%, and the 10-yr yield increased six basis points to 1.58%.

OUR MARCH NEWSLETTERS COME OUT SUNDAY, FEBRUARY 23th.