Stocks rise to end the first half on a high note

Fred Imbert | Sam Meredith Published 12 Hours Ago Updated 57 Mins AgoCNBC.com

Stocks rose on Friday, the last trading day of the first half of the year, but still posted weekly losses as the underlying market sentiment was soured by anxiety over global trade frictions.

The Dow Jones Industrial Average rose 55.36 points to 24,271.41, with Nike outperforming. The S&P 500 gained 0.1 percent and closed at 2,718.37 as energy jumped 0.7 percent. The Nasdaq composite also advanced 0.1 percent to 7,510.30.

Nike shares jumped more than 11 percent and reached an all-time high after the company reported quarterly earnings and revenue that beat expectations.

The Dow rose as much as 293.47 points, but a late-session sell-off in bank shares knocked the 30-stock index from its highs. Bank shares traded higher for most of the day after announcing buybacks and dividend hikes following the Federal Reserve's annual stress test.

Getty Images
Traders work on the floor of the New York Stock Exchange on January 5, 2017, in New York City.

The first half of the year was fraught with volatility on Wall Street. The major indexes reached all-time highs in late January before concerns over rising interest rates knocked stocks off those levels. Equities recovered their footing following a strong earnings season and continuously strong economic data. But volatility returned to the market as President Donald Trump ratcheted up trade tensions between the U.S. and some its key partners.

“We’re clearly in a sideways market,” said Arian Vojdani, investment strategist at MV Financial. “The narrative — aside from strong economic data and good earnings — is not good.”

“Investors are sort of holding their cards to the chest because they want to see how this (trade spat) turns out,” Vojdani said.

The S&P 500 is up 1.7 percent this year, while the Dow is down 1.8 percent, marking its worst first-half performance since 2010. Meanwhile, the Nasdaq and the small-caps Russell 2000 have outperformed with gains of 8.8 percent and 7.1 percent. All four indexes rose on Friday, ending the first half on a high note.

But despite the gains, stocks indexes closed lower for the week as initial U.S. and Chinese tariffs are due to take effect next week. The Nasdaq dropped 2.4 percent for the week, its worst weekly performance in three months, while the Dow and S&P 500 fell at 1.3 percent each. The Russell 2000, meanwhile, dropped more than 2 percent.

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The Trump administration is set to activate tariffs on Chinese goods worth around $34 billion on July 6, which is then widely expected to trigger a tit-for-tat response from Beijing. Trump has also alienated Canada, by levying tariffs on its steel and aluminum imports. Canada announced retaliatory tariffs on Friday that target $12.6 billion in U.S. goods.

Axios reported on Friday, citing sources, that Trump has repeatedly told top White House officials that he wants the U.S. to withdraw from the World Trade Organization.

The ongoing trade spat between the U.S. and China has sent market volatility higher this week, with the Cboe volatility index (VIX), surging 15.6 percent.

"For the stock market, the rest of the year could be quite exciting, in both a positive and a negative sense," said Brad McMillan, chief investment officer at Commonwealth Financial Network. "I expect the U.S. equity markets to end the year with moderate appreciation from levels at the end of December—around 3,000 for the S&P 500 as a base case."

"In the nearer term, the Trump administration’s trade policies have the potential both to disrupt supply chains and increase costs, which would certainly affect financial markets," said McMillan.

— CNBC’s Thomas Franck contributed to this report.

Trump has done nothing in first half 2018 except put Americans 75 K in debt.

Bali News and Vews editor's comments : I am often asked by Americans why I  care and make so many comments about the American economy and Donald Trump in particular.

My answer is simple if America continues to go in debt the way they are now America and the world may have a severe recession or even worst a depression.

Why I am concerned is if "America Sneezes the rest of the world catches a cold".

America's business is business and up until recently they were very good at it.

When Donald Trump first announced he was running for the presidency I was one of his strongest supporters. I thought, finally a successful businessman running America's business. Soon thereafter I began to realize that he was racist, a womanizer and overall not a very nice man.

What really infuriated me was several months after taking the oath, when speaking about the Paris terrorist attacks on the Concert Hall and the restaurants he said something along the lines that if the restaurant patrons had guns they would have been able to protect themselves.

Now almost a year and a half  later no doubt in the coming days he will brag about all his accomplishments such as Corp. Tax cuts, rising stock market and a few things he's accomplished.

But will he mention since he took office crude oil is up over 70 %?

If America's business is business then a strong sign of how successful it's leader is whether America is further or less in debt at this point in his presidency .

In his early months he bragged about bringing down the national debt. 

At the time America was 19.95 Trillion in debt. An average Americans' share of that debt was $61,340 and an average taxpayers share was $166,769.

I wonder if he will brag about the fact that since he took office, according to the national debt clock, America's debt has grown from $19.5 Trillion to $24.43 Trillion , an average American's share of that debt is now it's $75,000 per U.S. Citizen.

So will American's be happy that they are 22 % more in debt than when he took office?

"22 % more in debt"

So in essence when a baby comes out of their mother's womb in America they are already facing a $75,000 debt.

But yet 47% of America's population, according to recent polls, support him. To me that means 47% of Americans are completely ignorant!

I also wonder if he will brag about the fact that many times during his term, hours before deadlines to shut down his Govt unless the National Debt was increased he succumed and increased the National Debt. 

It's like he is running another company that is on the verge of bankruptcy, similar to many companies he has bankrupt in the past.

No doubt Trump will brag about what he has accomplished the first half of this year in the coming hours. 

I wonder if he will brag about the fact that since he's taken office and average American is 22% more in debt than when he took office.

The fact is most Americans don't care that they just keep on raising debt.

But the day will come when the debt holders, which includes China, who he is having a trade war with and Japan plus Saudi Arabia may decide to call the loans.

When that happens the dollar will plummet along with American real estate and American stock markets.

This is why I personally have pulled everything out of equity investments until after the midterm elections.

Hopefully either Trump will be impeached or a majority of Democrats take over, which may bring some stability to the markets.

In the intern I am going to purchase  Bali real estate for the first time in 6 years as I am convinced that the first bear market in modern history is over and Bali properties are a bargain at 30% to 50% off 2014 prices.

Is real estate in the U.S. a good investment in 2019?

Editor's Comments:

My predictions on United States real estate have been very accurate over the last four decades. 

When I told everybody to get out of Hawaii real estate in 1982 after the Japanese had bought everything in sight they laughed at me. Two years later prices dropped 20 to 40%.

When I predicted, in my Bali News and Views newsletter in 2007 that American real estate was going to collapse because American housewives were having house selling parties instead of Tupperware parties they laughed at me again. A few years later prices were down as much is 70%.

Reader's question when I recommend they get back into American real estate in places like Las Vegas in 2009. They're not questioning me anymore after increases of 50 to 100%.

As the article below the questions "is real estate in the U.S. a good investment in 2019".

The answer is maybe. My acid test for any real estate market in the world is can I buy a two or three bedroom apartment and rent it out for positive cash flow? If not the market soon will end as it is in Sydney where I'm staying right now where prices I expect to drop 20 to 40% in the coming years.

The best time to buy real estate is not after it has gone up but after it's dropped. Especially in an area that has guaranteed increase in demand in the future such as Bali, Indonesia where prices  have dropped 20 to 50% since tap 2014 and have leveled off the last 6 to 12 months.

If you like to find out where and what to buy Bali drop me a note at info@bestasiarealestate.com or take a look at our properties that ARE ON SALE AT www.bestasiarealestate.com

Ali Boone, REI entrepreneur, BiggerPockets author, Rental Properties owner
Answered 5d ago


I think real estate is always a good investment, assuming you are buying a good property. 80% of properties don’t make good investments, regardless of what year it is or where we are in the real estate economy/cycle.

The question isn’t so much- is it a good investment- but rather, what would be a good investment in 2019? For instance, the first thing I look at is the fact that we are much closer to peak prices than crash prices. Because of that, investing in a property for appreciation potential might be severely un-wise. If you buy with cash flow in mind though, over appreciation, that is certainly an option for 2019.

I would say the biggest consideration really is—are you trying to invest for cash flow or appreciation? Well, at least on the rental properties front. If you want more details on the difference between those two methods, check out:

Investing for Cash Flow or Appreciation – What's the Difference? | Hipster Investments

But for things like flipping, that can always work if you do it right…especially when prices are so high so you should be able to get max price on the sale. But, can you get the distressed property cheap enough? I have no idea, I don’t flip to be able to say.

Yes, real estate is always a good option. But what to buy is the more pertinent question. There are so many options out there to pick from! Anyone who tells you a generic statement like “focus on multi-units” is leaving a lot of unsaid critical information out of the answer. Not much to go on with that.
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Indonesia’s Order to Foreign Workers: Learn the Language

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President Joko Widodo of Indonesia, center, has alarmed foreign businesses with a requirement that expatriate workers undergo formal language training.CreditWidodo S. Jusuf/Antara Foto, via Reuters


By Joe Cochrane
June 23, 2018

JAKARTA, Indonesia — Indonesia is making it easier for foreigners to work here — but they will have to study as well.

A decree by President Joko Widodo that is set to take effect this month will simplify Indonesia’s procedures for issuing work permits to foreigners, which are often hampered by delays, arbitrary denials and revocations, not to mention compulsory bribes to civil servants just to stamp the paperwork.

Buried inside the order is a section requiring all expatriate workers to undergo formal Indonesian language training, an apparent first for any nation in Southeast Asia.

The foreign business community has been caught off guard by the new requirement.

“Our businesses want to be here and want to invest, but what they also want are predictable rules,” said A. Lin Neumann, managing director of the American Chamber of Commerce in Indonesia, which represents nearly 300 American companies operating in the country.
The United States is one of Indonesia’s largest foreign direct investors, in industries including oil and gas, mining, banking, technology, e-commerce and logistics.

The language requirement “sends a negative message that foreigners are somehow unwelcome,” Mr. Neumann said. “This hurts the investment climate.”

The order also applies to domestic companies, which are reacting with alarm.

“I think this is foolish; it’s stupid. It lacks clarity on what the objective is,” said Suryo B. Sulisto, a prominent Indonesian business executive and former chairman of the Indonesian Chamber of Commerce and Industry.

“What are they trying to do — stop investment coming in?” he added. “It’s counterproductive.”

The government has not explained the reasoning behind the language requirement. But it may be an attempt by Mr. Joko, who is running for re-election next year, to placate political rivals who say he is “opening the floodgates” to foreign workers by streamlining the process for obtaining work permits.

Indonesia, a country of 260 million people, currently has about 126,000 working Asian and Western expatriates, a low percentage compared with neighbors like Singapore and Malaysia.
The complaints from Mr. Joko’s opponents stem partly from an increase in the number of Chinese manual laborers entering illegally on tourist visas to work on Chinese-funded infrastructure projects. As unregistered workers, they would not be subject to the new language requirement.

Mr. Suryo said it made little sense to address concerns about illegal foreign labor by imposing a language requirement on bankers, engineers and other professionals.
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Sudirman Central Business District in Jakarta, the capital. An Indonesian businessman called the new language requirement “foolish” and “counterproductive.”CreditBeawiharta/Reuters


“This is another part of bureaucracy where it’s a moneymaking opportunity for someone,” he said. “People will get into the business of issuing fake language certificates.”

Indonesia has a decades-old history of official corruption and is one of the most graft-ridden nations in Asia. It also remains a difficult market for foreign investors to master, ranking 72nd on the World Bank’s most recent Ease of Doing Business survey.

In 2015, Mr. Joko publicly quashed a draft regulation requiring all expatriate workers to be proficient in the Indonesian language, saying it was bad for business.

But his own decree requires companies to arrange and pay for foreigners working in the country for longer than six months to take Indonesian language courses at local schools, and to provide attendance certificates.

If they fail to do so, the companies and their employees could face unspecified sanctions that are being drafted by the Ministry of Manpower and Transmigration, which processes and revokes foreign work permits, according to Budiman, head of the ministry’s legal affairs bureau.

The order goes into force on Tuesday, said Mr. Budiman, who like many Indonesians uses only one name. Some details, like how many class hours are required per week, are still being decided.

Mr. Budiman said companies shouldn’t complain because the decree also reduces waiting times for work permits, from months to days.

“Don’t look at this issue from only one side,” he said.

Throughout his presidency, Mr. Joko has fought over foreign investment policies with his own cabinet ministries and bureaucracy, which are often accused of being more focused on protecting their own interests than in opening up the Indonesian economy.

In 2015, as Mr. Joko was rolling out a series of regulatory reforms, his government adopted dramatically higher tariffs on more than 1,000 imported items, an increase that he opposed but which did not require his approval.

Johan Budi, Mr. Joko’s spokesman, played down any political infighting or the possibility of negative economic repercussions, insisting that the order does not require that expatriates be fluent in the Indonesian language to be employed.

“It is necessary for companies to provide the facilities for training expatriates” in the language, Mr. Budi said, “and there’s nothing wrong with foreign workers learning Indonesian. But it is not mandatory to be able to speak the Indonesian language.”

Sydney, Australia offers great variety during off-season for Bali Family

We are off on another trip this time to Australia for family ties and New Zealand for skiing.

Unfortunately the trip down was not that good on Qantas. I found it almost impossible to sleep in the very narrow uncomfortable chairs which on an overnight trip was not. Normally I would purchase extra legroom but for only a 5 1/2 hour flight I did not think it was necessary.

Evening Qantas flight attendant confirmed this is one of the worst planes they had in their fleet.

Although the check-in was quick and very professional we found when after we arrived in Sydney that my tennis bag which originally had planned to carry on but was convinced by family to check in, had not arrived.

It was then that I realized that very uncharacteristically I had at the last moment put my Nikon camera several expensive  lenses into the bag along with a lot of the electronics I needed for my computers, cell phones etc.

When we finally realized that the bag was not coming I went to the Qantas counter and found a very lazy, gentlemen who didn't seem to care the least.

They gave me a tracking number. I tried to contact the number the next morning and after 45 minutes gave up with no answer.

After I did a list of what was in the bag I realized that I had about $3,300 of valuables at their including two tennis rackets etc.I was even more hurt by the fact that this tennis bag was an original Wimbledon tennis back from Wimbledon when I visited there many years back. 

So it had lots of sentimental value which of course Quantas didn't  care

I was not looking forward to trying to retrieve that money from Qantas and my travel insurance.

So the next morning there was no sign of it and then I decided to drive directly to the airport fully intending to give Qantas a piece of my mind. The bag had finally showed up two days later. 


At any rate the fear of loss and hassle trying to purchase new cameras tennis equipment etc. was then alleviated and we had on one of the vacation in full spirit.

As usual I organized home exchanges to save thousands and thousands of dollars. 

To start our trip we ended up in a swank area of downtown Sydney in a very classy private residence with full-size indoor swimming pool, health club etc..

It's kinda nice to come home at night and have a concierge open the door for you privately

The great thing is it is in close proximity to the harbor and we've had several walks already down to the harbor where we had a great steak and yesterday morning crossed a bridge.

Yesterday we also enjoyed a day out at the Featherdale wildlife Park, approximately 30 minutes from downtown Sydney.

The park features all the normal rare Australian animals Wallabies,  Kangaroos, Emus, Crocodiles and wild dingoes.

Most interesting is the Tasmanian Devil who eat their young. Reminds me a few real estate agents I know.

All in all Sydney at this time of the year is beautiful with daytime temperatures from 12 to 18 centigrade and nighttime falling to 10 to 15.


Bring lots of money because it's super expensive here.