|
|
| J. PINK ASSOCIATES, INC.,
FINANCIAL ADVISORS
555 Taxter Rd. Suite 190
Elmsford, NY 10523
Ph 914-909-1576
Fax 914-524-7771
Weekly Market Review |
|
Greetings!
With the bail out vote in our rear view mirror, I find myself quite curious to see just where and how (and most importantly, when) the dust will settle. The one thing I am confident of is that, over time, we will put this behind us and start building back our portfolios.
In these volatile times, I don't want you to feel that you are facing this alone. I am invested in the same markets using the same instruments you are, in fact my personal investment portfolio is extremely aggressive. I'm also taking a real hit right now too. I truly share in your discomfort. I, however, have no long-term concerns because I believe that this is just one of an endless line of economic "speed bumps" we will face together over the decades to come. Please feel free to call and discuss anything that is on your mind. I am always happy to hear from you.
|
| Market Commentary
|
|
In spite of Congressional and White House approval of contentious rescue legislation late last week, the US equity market fell on Friday, completing a week that saw stock losses on 4 of 5 trading days. The S&P 500 index begins trading today 30% lower than its all-time closing high of 1565, a lofty level that was achieved 1-year ago this upcoming Thursday (source: BTN Research).
The House rejected the original version of this historic bill a week ago today, setting off a chain of events that disappointed many, frightened others, but ultimately appeased just enough legislators to allow its passage. It did however take $107 billion in additional tax breaks and incentives (bringing the total price tag to more than $800 billion) to get the bill successfully through Congress. History will critically judge whether the added debt burden undertaken by the US government was justified (source: USA Today).
Investors are glad to have September in their rear-view mirrors, a period that produced the worst monthly loss for the S&P 500 in 6 years and $1 trillion of bailouts, rescues and intervention by Uncle Sam. The good news is that October has been the best performing month since 1990, up better than +2% (total return) on average (source: BTN Research). |
| Notable Numbers for the Week:
|
|
1. RTC HISTORY - The eventual cost to taxpayers of the Resolution Trust Corporation (aka RTC, which ran from 1989-95) was $120-140 billion, more than 70% less than the original $500 billion cost estimate. The RTC was created to sell real estate assets from failed savings and loans (source: NY Times, Denver Post).
2. DUBIOUS RECORD - The government will release its budget deficit results from September this upcoming week, bringing a close to fiscal year 2008. It is anticipated that the final deficit number for the year will reflect a $389 billion deficit, the 2nd largest annual total ever, trailing only the country's $413 billion deficit from fiscal year 2004. Merrill Lynch economists are projecting a $900 billion deficit for fiscal year 2009 and an $825 billion deficit for fiscal year 2010. Fiscal year 2009 began last Wednesday (source: Financial Times).
3. TWO GENERATIONS - 51% of Americans ages 44 to 62 believe the retirement lifestyle enjoyed by their parents' generation will be better than the one that they will experience (source: USA Today, Charles Schwab).
4. DEPRESSING - The average American male works 44 years before retiring (source: Wall Street Journal).
|
|
|
|
|
| Quick Links
Use this link to check our website for information updates. |
|
|
|
, We need your help!!!
Your suggestions are very important. |
| Please help us improve our communications to you. If you have any thoughts or suggestions on how we can improve our weekly emails, or anything else for that matter, please let us know. Communication is critical and any ideas you may have are really appreciated. Is there something we should add, change or remove altogether?
The more guidance you give us the better we can serve your needs.
Thanks. |
| Forward this email
Can you think of someone? |
| Who can you think of that might benefit by reading this email?
Please forward this to anyone or better yet everyone you can think of that might benefit by reading it.
Family members, Co-Workers, Friends, Neighbors, perhaps your Accountant or Lawyer? Heck, even your in-laws might like to read this.
So please, click on the "Forward email" link below and share this edition of "John Pinks' Weekly Market Review" | |
|
|
This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed by NFP Securities, Inc. as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. The indices mentioned are unmanaged and cannot be directly invested into. Past performance does not guarantee future results. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market.
Securities and Investment Advisory Services offered through NFP Securities, Inc. a Broker/ Dealer, Member FINRA/ SIPC and a Federally Registered Investment Advisor.
NFP Securities, Inc. Is not affiliated with J. Pink Associates, Inc., Financial Advisors | |
|
