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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 hope you had a nice long weekend and a very enjoyable holiday. Jo Ann & I got to spend some time with my family (my Mother, Brother, Sister, her husband, my nieces and nephew). It was nice to be together and have some family time. Jo Ann & I made the same observation as we were driving home; we realized that anything that is out of our normal routine is simply exhausting.
Much the way all of the focus on the markets and economy are always very front and center (or as my son & daughter would say, "in your face"), it too can be exhausting. I think that's because it forces us to focus on things that are outside of our daily routines. That's exactly why you have me. My job is to make it a routine to look at your investments and contact you if I think something warrants your attention. Of course, you're always free to call and ask questions.
Please feel free to tell me if there's anything I can try to do to offer you comfort during these uncertain times.
Fondly,
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| Market Commentary
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The S&P 500 was up +1.7% last week (total return), its 5th consecutive up-week, a feat last accomplished 1 ½ years ago. The stock index has gained +26.9% since closing at a bear market low of 677 on 3/09/09. How optimistic stock buyers continue to be may be driven by the abundance of 1st quarter earnings numbers that will be reported in the coming weeks. Even though the collective earnings totals for the index are expected to be 36% lower when compared to the actual results from the 1st quarter of 2008, stock investors may look to the future, focusing on the hope of better days to come (source: BTN Research, USA Today).
President Barack Obama was encouraging Americans last week to take advantage of the near record low mortgage interest rates by refinancing their existing mortgages. Fannie Mae refinanced $77 billion of loans in the month of March, nearly double what they processed in February. The average 15-year fixed rate mortgage is only 4.49% today (source: AP, Mortgage Bankers Association).
Individual taxes for calendar year 2008 are due this Wednesday. The size of the US tax code, tax regulations and various IRS rulings has expanded to more than 70,000 pages, an increase of +54% in just the last 8 years (source: Cato Institute). |
| Notable Numbers for the Week:
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1. DOING THINGS DIFFERENTLY - 4 out of every 5 Americans (79%) is either spending less money or is saving more money than they were a year ago (source: AARP).
2. CHANGES MADE - Of 401(k) participants that have suffered losses in the last year, 17% of this group are investing more aggressively and 14% are investing more conservatively today (source: Plan Advisor).
3. SAVING FOR A RAINY DAY - The personal savings rate in the USA reached 3.2% as of 12/31/08, a 7-year high. The personal savings rate in China is greater than 20% (source: Department of Commerce, Fortune).
4. LONG ONE - If the current US recession that began at the end of December 2007 extends into the next month (i.e., May 2009), its 17-month duration would be the nation's longest recession since the country suffered through a 43-month downturn during the Great Depression of 1929-33 (source: National Bureau of Economic Research).
5. REBALANCE OR NOT? - If you allocated $100,000 in a pretax account on 1/01/84 between stocks (60%) and bonds (40%) and never rebalanced the portfolio, the account would be worth $918,088 on 12/31/08. That equates to a +9.3% annualized total return over the 25-year period. Annual rebalancing back to the original 60/40 allocation would have generated $994,689 or an annualized total return of +9.6%. The S&P 500 was used as the stock proxy. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market. The Lehman Brothers Aggregate bond index, calculated using 6,000 publicly traded government and corporate bonds with an average maturity of 10 years, was used as the bond measurement. This mathematical calculation ignores the ultimate impact of taxes on the account which are due upon withdrawal, is for illustrative purposes only and is not intended to reflect any specific investment or performance. Actual results will fluctuate with market conditions and will vary (source: BTN Research). |
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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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