Market/Portfolio Happenings





Hello and welcome to this week’s Jones Financial Blog! Our goal at Jones & Associates is to help keep you up to date with interesting current economic/market happenings as well as some proprietary portfolio happenings. Knowledge is power and thought we would share some of ours with you. Enjoy!

All data is for the week ended January 21 , 2022

Economic/Market happenings:

Stocks

  • Equities were down sharply across the major global indices. The primary concerns were around interest rate increases to combat the surge in inflation in addition to a military buildup in Ukraine by Russian and NATO forces. The Russell 2000 declined 8.07%, NASDAQ dropped 7.55% and the S&P 500 was down 5.67%. Note that year to date the NASDAQ has dropped nearly 12%; any index that declines 10% or more from its recent high is considered in correction territory. Overseas, developed markets index (MSCI EAFE) declined 2.08% and that of the emerging markets (MSCI EM) declined 1.04%. (1)

Fixed Income

  • Rates declined as values rose last week with the benchmark 10-year treasuries ending the week at 1.75%, down 3 basis points for the week and down 12 basis points since Tuesday. (2) The yield curve flattened in anticipation of rising interest rates from the Federal Reserve in the coming weeks.

Commodities

  • The price of gold (GLDM), a Precious Metals strategy and Endowment Series holding, moved 0.80% higher last week on continued concerns about inflation and stock market volatility. Over the past month and past three months gold has risen 2.43% and 3.23%, respectively. (3)

​Economic Data

  • The Philadelphia Manufacturing Business Outlook survey rose strongly, from 15.4 in December to 23.2 in January. Prices, shipments, number of employees and average workweeks were the key drivers of the index’s strength. (4)

Proprietary portfolio happenings:

Company News (5)

  • Netflix (NFLX), a Core Select and G33 holding, reported results that beat expectations on revenue and earnings, but management gave poor guidance on subscription growth fr their service last week, sending the shares down 24.39%. (6)

  • Procter & Gamble (PG), a G50 and Contrarian Choice holding, rose 2.31% last week on a strong sales and earnings report that beat consensus expectations. Management also raised guidance for organic sales which includes stronger pricing. (7)

 

Did You Know? Iceland has the largest banana plantation in Europe. Farmers use their geothermal energy to heat greenhouses, allowing for the production of tropical fruits including bananas.



Sources:

(1) Franklin Templeton “What Happened Last Week” 1-24-22

(2) Treasury.gov

(3) Morningstar

(4) Federal Reserve Bank of Philadelphia 1-20-22

(5) All weekly changes in company stock prices: Yahoo Finance

(6) Netflix press release 1-21-22

(7) The Procter & Gamble Co. press release 1-19-22

Herstle Jones, LUTCF, CLTC President & Founder

With over 20 years of experience in the financial services industry,

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