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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 start a new quarter of the year, I would like to spend a little time with you reviewing your investments. Please call the office so we can set up a time for a quarterly review of how your investments are reacting to the markets/ Economy. We can also discuss whether we should be considering making any changes or adjustments to your portfolio. I look forward to speaking with you soon.
Fondly,
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| Market Commentary
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For a time last Monday it appeared that the financial center of America may have shifted from Wall Street to Washington as the White House flexed its muscles in taking unprecedented control over the struggling US auto business. The message from the government was clear: if the auto industry wants additional federal aid from taxpayers, greater concessions will be required (source: AP).
President Obama took his star-power on the road, traveling to Europe for a meeting with the leaders of 19 countries across the globe. The summit highlighted the philosophical difference between the US and Europe regarding their preferred methodology to solve our global crisis. America's plan focuses on stimulating growth and creating jobs. Europe's center of attention is on the structure and regulation of the institutions at the heart of the economic crisis (source: BTN Research).
Since closing at a bear market low just 4 weeks ago today, the S&P 500 has rallied to gain +24.5%. The question on Wall Street during the upcoming shortened trading week is whether the stock index can advance for a 5th consecutive week, a run that last took place in October 2007. The S&P 500 stock index has a long ways to go before approaching the 12 consecutive up-weeks that occurred in 1985, its best streak of the last 50 years (source: BTN Research). |
| Notable Numbers for the Week:
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1. BOND DATA - The historical default rate for all municipal bonds (i.e., bonds of all rating categories) is 0.1%. The historical default rate for all corporate bonds (i.e., bonds of all rating categories) is 9.7%. However the default rate drops to 2.1% for investment-grade corporate bonds (source: Moody's, Municipal Market Advisors).
2. IT WAS HIGH - The nation's unemployment rate averaged at least 7% during 6 of the 8 years that Ronald Reagan was president. Reagan was in the White House from 1981-88 (source: Department of Labor).
3. BACK TO WORK - The many programs implemented under President Franklin D. Roosevelt's "New Deal" in the 1930s created 8 million jobs nationwide, including 2.5 million in the Civilian Conservation Corps (source: Time).
4. A TAXING MATTER - Analysis of tax returns indicates that the average American pays only 84% of the total tax bill that he/she actually owes. IRS audits and the subsequent enforcement activity by the government increase the compliance rate to only 86%. The resulting 14% "tax gap" is equal to $290 billion a year of taxes not paid. Former Fed Chairman Paul Volcker is now leading a taskforce on tax reform and they will report their findings to President Obama by 12/04/09 (source: Internal Revenue Service). |
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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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