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| J. PINK ASSOCIATES, INC.,
FINANCIAL ADVISORS
555 Taxter Rd. Suite 190
Elmsford, NY 10523
Ph... 914-524-7770
Fax. 914-524-7771
Weekly Market Review |
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Greetings!
These are certainly crazy times. I wish I could tell you we, at J. Pink Associates, have all the answers, but you know that would not be true. We are, however, here if you need us.
I was speaking to one of my clients yesterday about her brother, who has been trying to get a hold of his broker for over a week and hasn't gotten the courtesy of a call back! I have heard similar stories from other clients over the past weeks. We want you to know that our goal has always been to respond to your calls and emails in a timely manner. In most cases, that means same day response. This is still and will always be our goal.
With so many of the large financial companies in turmoil, companies like Merrill Lynch and Morgan Stanley just to name a couple, we want you to know that we are here and willing to help.
If you, a family member, or a friend have accounts with the large brokerage houses and are having trouble getting answers to questions or just want a financial professional to talk to, please give them our number or email address. I promise no matter what help they need, we will try to provide that help. It doesn't matter if they are not our clients. They are your family and friends which makes them important to us. No question will go unanswered and as always we will try to find the answers to questions we do not have.
Our commitment to you means that we will do whatever we can to help in these uncertain times. We want you to know that our number one goal is to be here for you. We wish we could make the markets do nothing but go up but you know we can't. What we can do is stand here side-by-side with you and that is exactly what we plan to do.
Let us know if you need us and we hope to see you again very soon.
Warm regards,
John
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| Market Commentary
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To put last Monday's +11.6% gain for the S&P 500 into perspective, the 50-year average annual return for the stock index as of the beginning of this year was +11.0% (total return). The double-digit advance a week ago today was its best 1-day performance in 69 years (source: BTN Research).
Famous US investor Warren Buffett played the role of a cheerleader last Friday with his oft-used mantra of "be fearful when others are greedy and greedy when others are fearful." The advice was penned in the op-ed pages of the nation's 3rd largest daily newspaper but has become the rally cry for many stock prognosticators in the country (source: New York Times).
The price of oil began the year at $96 a barrel, rose +53% from there by mid-July and then has fallen 51% in the last 3 months. In response to the rapid price decline, OPEC oil ministers will hold an emergency meeting this upcoming Friday in Vienna to consider lowering its daily production level (source: AP). |
| Notable Numbers for the Week:
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1. BORROW AND BUY - An estimated 40% of stock investors were purchasing equities by using borrowed funds (i.e., margin accounts) in 1929 at the time of the crash. Margin debt on the New York Stock Exchange hit an all-time high of $381 billion in July 2007 but was down to $292 billion by the end of August 2008. Total margin debt was $279 billion when the stock market peaked in March 2000 (source: Wall Street Journal, NYSE).
2. JOBLESS - The unemployment rate in the US during the Great Depression reached 25%. Even as the decade of the 1930s was ending, the nation's unemployment rate was still close to 15%. The unemployment rate in the US is 6.1% today (source: Wall Street Journal, Newsweek, Department of Labor).
3. GONE - 40% of US banks failed during the 5-years from 1929-1933. The Federal Deposit Insurance Corporation, guaranteeing an individual's account up to a maximum threshold of $2,500 initially, was signed into law on 6/16/33 and became effective on 1/01/34, too late for thousands of US citizens (source: Newsweek, FDIC).
4. IRONIC - When Ben Bernanke took over a vacant slot on the Federal Reserve's Board of Governors in August 2002, he was required to set aside the 120 pages he had written for a book that he began 2 years earlier. A New York City publisher had paid Bernanke an advance on a book that was to be titled "Age of Delusion: How politicians and central bankers created the Great Depression" (source: Wall Street Journal, Federal Reserve). |
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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 | |
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