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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!
I received an interesting call I thought I should share with you. Just after sending out last week's "WMR", one of our clients called to chat about the newsletter we had just sent out. Her first comment was to tell me how "sick and tired" she was of the way the media has been handling themselves through this uncertain time in our financial history. I know many, if not most, of us feel the same way. Her next question/ comment was what I thought was so poignant. She asked "what qualifies the media to tell us about the markets and economy; don't they have to have any licenses"? A very good question, the short answer is "Yes" and "No", I'll explain. Technically, if you engage in the business of offering financial advice or managing money, you are required to have the proper licenses to do so. The 1st amendment, however, allows for an exception to that very critical law. The odd part here is that if you don't hold any licenses and you give advice, the SEC (and other governing bodies) really doesn't have the authority to make you stop. To me this basically allows someone to practice "medicine" without a license. My advice is to consider the background of the person/ people dispensing advice and weigh it accordingly. In my personal, as well as professional opinion, unless someone knows the details of your personal situation, they are not in a position to offer advice. I think this is precisely why call-in formats do more harm than good. They are often hosted by someone that just wants to strike an emotional chord with their audience, regardless of the effect. Generalities are often effective at doing just that, and not much else. One way to be sure the person dispensing advice is qualified to do so, is to check them out at www.nasdr.com . This is the FINRA (formerly the NASD) website to check and see if an advisor/ broker is legit and to see if they have any customer complaints filed against them.
I will go in to more detail about advisor licensing and what some of the licenses mean in next weeks newsletter.
As always, if you want to chat with someone about what is going on in your financial life, feel free to call.
Fondly,
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| Market Commentary
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Warren Buffett, the world's # 2 richest person and oftentimes the calming voice heard in the stock market's darkest hours, admitted during an interview last Monday that "(the economy) has fallen off a cliff" and that "fear and confusion have been driving consumer and investor behavior." The role of market prognosticator then fell to President Barack Obama when he declared on Tuesday that "profit and earnings ratios are starting to get to the point where buying stocks is a potentially good deal, if you've got a long-term perspective on it" (source: CNBC, White House).
Both Washington and the White House have been struggling with explaining what happened in the past to create our current financial mess, much less selling the plans that will shape the future of our economy. But last week the stars aligned correctly as the S&P 500 gained +10.8% for the week (total return), ending a streak of 4 consecutive down weeks. OPEC oil ministers met in Austria yesterday and rejected a 4th production cut in just the last 6 ½ months, instead deciding to fully implement the elimination of 4.2 million barrels targeted from the 3 previous cuts (source: BTN Research, OPEC).
In their last 23 meetings, the Federal Reserve has either lowered interest rates or kept rates unchanged. Ben Bernanke, fresh off his "60 Minutes" interview, leads the nation's central bank into its 2nd meeting of 2009 later this week (source: Fed). |
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1. BIGGER AND BIGGER - The first budget plan presented to Congress by President George Bush (# 43) on 4/09/01 was for fiscal year 2002 and anticipated $1.96 trillion of spending for the 12 months ending 9/30/02. The first budget plan presented to Congress by President Obama on 2/26/09 was for fiscal year 2010 and it anticipates $3.55 trillion of spending for the 12 months ending 9/30/10 (source: White House).
2. JOBS - The 651,000 job losses that the US suffered during February 2009 were the 5th largest monthly total ever reported. The last 3 months (December-January-February) rank as the 3rd, 4th and 5th worst months ever. The worst ever (job losses of 1.97 million) occurred in September 1945 (source: DOL, FT).
3. NET WORTH - The total net worth of Americans was $51.5 trillion as of 12/31/08, down 18% in the last year, reaching its lowest level since 9/30/05 (source: Federal Reserve).
4. BIG APPETITE - The USA consumes as much oil per day as does the next 5 largest oil-consuming countries in the world combined (US Energy Information Administration, Wall Street Journal). |
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At J. Pink Associates, we do comprehensive financial planning and wealth management for families and small businesses by getting to know the unique details of your financial world and thoughtfully crafting a strategy to identify and support your goals.
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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. does not offer tax or legal advice
NFP Securities, Inc. Is not affiliated with J. Pink Associates, Inc., Financial Advisors
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