U.S. stocks have had a great run

During the past decade, the profitability of U.S. companies increased rapidly. Strong corporate earnings helped the U.S. stock market outperform markets in other nations by a significant margin. According to Capital Economics, “Since the start of this decade, the average annual return from the MSCI USA index of mid- and large-capitalization U.S. equities, which closely tracks the S&P 500, has been roughly 13 percent. This compares to only 7 percent from the MSCI World ex USA index of comparably-sized equities in 22 other developed economies.” Performance was measured in local currency.

Through the end of April, year-to-date returns for U.S. benchmark indices were soaring. T. Rowe Price reported, “Stocks recorded solid gains in April, continuing their strong start to the year. The S&P 500 and Nasdaq Composite Indexes hit new all‑time highs at the end of the month, while the other major benchmarks remained modestly below the peaks they established in the fall of 2018.”

Since early May, when trade discord resumed between the United States and China, major U.S. stock indices have lost value. Ben Levisohn of Barron’s reported the Dow Jones Industrial Average has fallen 3.5 percent since May 5, the Standard & Poor’s 500 Index is down 4.1 percent, and the Nasdaq Composite has surrendered 6.5 percent.

There are reasons to believe stock performance may not be as strong in the future. Last week, there were signs U.S. and global economies may be slowing. Randall Forsyth of Barron’s reviewed some indicators. “Long-term U.S. Treasury yields…fell on Thursday to their lowest levels since October 2017, before ticking up on Friday. At the same time, copper and crude-oil prices fell on the week. Those indicators of economic weakness were underscored by a drop in the flash IHS Markit Purchasing Managers Indexes to a shade above 50, the dividing line between expansion and contraction for the economy. Whatever the factors at work, the U.S. economy is slowing.”

After a great decade and a stellar start to 2019, U.S. stock markets may be cooling off.

It’s not capture the flag

Like competitive gaming and Ultimate Frisbee, some may categorize pillow fighting as an activity rather than a sport.

Japan isn’t the only country to embrace pillow fighting. Since 2008, when International Pillow Fight Day was established, annual pillow fights have been launched in cities around the world, according to Awareness Days. Since the first World Pillow Fight Day in March 2008, the activity has gained popularity “…with pillow fighting flash mobs fighting it out in more and more cities every year…”

NOTE: Pillow fighting is not without risk. In 2015, West Point banned its annual pillow fight after 30 participants were injured.

Best regards,

Scott and Jess Peterson

This article was provided by Peterson Wealth Management. For more information, please call 775-423-8007 or visit PetersonWM.com.

This article was prepared by Carson Group Coaching and provided by Peterson Wealth Management. Carson Group Coaching is not affiliated with any other named entity. For more information, please call 775-423-8007 or visit PetersonWM.com.