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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!
As we continue to weather this time of volatility and uncertainty, I find myself quoting one of Warren Buffets oldies but a goodie by saying (as I have said for years now) "be greedy when other people are fearful and be fearful when other people are greedy". I know this might not make sleeping at night any easier, but I truly believe (my personal opinion), that with fear and volatility at all time highs, US & foreign governments working around the clock to turn things around and strengthen not only the markets but the global economy as a whole, we are pointing towards a more stable and encouraging period in our financial lives. Let's try to remember that the market is a leading NOT lagging indicator. Meaning the market will typically be well in to the recovery phase BEFORE the economy follows suit. Often the fearful (or in this case those paralyzed by fear) will move their portfolios to cash and wait out the storm. This can be very hazardous to your wealth as often the real gains to be made in a recovering market are in the early stages of the recovery. These stages are often not identifiable until several months AFTER the fact. My advice, try your best NOT to make decisions based on emotion (remember, fear is an emotion). Easier said than done right? Well, maybe not. This is exactly why you have me on your team. Part of my job is to be available to discuss these decisions with you and help you make choices based on logic not emotion.
Following the course laid out in your financial plan is more relevant now than ever.
So please, if you want to call me and discuss your personal situation and any fears you may be battling, I want you to feel free to reach out to me at any time.
Warm regards,
John |
| Market Commentary
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Investors discovered it wasn't safe to "go back into the water" last week as fears of a worldwide recession drove stock prices lower. The S&P 500 closed the week at 877, its lowest finish in 5 ½ years and down 39.3% YTD (total return). The stock index has lost a staggering 24.8% during the month of October alone, a performance that is worse than any calendar year result since 1974 (source: BTN Research).
Congress began a series of hearings last week intended to point fingers of blame at those individuals responsible for our nation's financial crisis. Former Fed Chairman Alan Greenspan testified on Thursday, accepting only partial responsibility for the financial collapse, but instead pointed his own finger of blame at overeager investors who had failed to evaluate the risks inherent in their real estate purchases. OPEC oil ministers, reacting to a 39% fall in the price of oil in just the last month, announced plans on Friday to reduce its daily oil supply by 1.5 million barrels. The nationwide price of gasoline has fallen for 39 consecutive days and is now $2.70 a gallon, 35 cents lower than where it began the year (source: AP, AAA, Wall Street Journal).
Ben Bernanke and the Fed will gather this week, its 7th of 8 scheduled 2008 meetings. The bond market is priced to reflect a 100% chance of a ¼ of 1% rate reduction by the Fed, a drop that would be its 6th rate cut of the year (source: Federal Reserve, Barron's). |
| Notable Numbers for the Week:
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1. SAVING LOTS OF MONEY - The national average price of gasoline peaked on 7/16/08 at $4.11 a gallon. By Sunday (10/26/08), the national average price of gasoline had fallen to $2.70, a drop of $1.41 a gallon. Since every 1 cent reduction in the price of gasoline saves Americans $3.4 million a day, a drop of $1.41 a gallon equates to $475 million of daily savings for US consumers (source: AAA, WSJ, Fortune).
2. ONLY THE BIGGEST ESTATES - Only 1 out of every 106 deaths results in the payment of federal estate taxes (source: CDC National Center for Health Statistics, WSJ).
3. GIVING IT AWAY - The annual gift exclusion rises to $13,000 in calendar year 2009, an increase of $1,000 from this year. All US citizens can make gifts of cash or other property worth up to $13,000 in 2009 to an unlimited number of people without gift tax consequences (source: IRS).
4. A WEEK FROM TOMORROW - There are 14 individuals on the official presidential ballot other than Republican John McCain and Democrat Barack Obama (source: Official Ballot for General Election). |
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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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