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 J. PINK ASSOCIATES, INC.,
FINANCIAL ADVISORS
555 Taxter Rd. Suite 190 Ph... 914-524-7770
Elmsford, NY 10523 Fax. 914-524-7771
Weekly Market Review |
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| Greetings!
I hope you had a relaxing weekend. I got to spend time outside in my garden; I always find time spent in the garden to be so peaceful and relaxing. It's one of those activities where I can shut down my brain and not "think" for a few hours.
I think spring is my favorite season, it always feels like a new beginning. In February and March it felt like the winter would never release its grip. I suspect many people felt the same way. I also suspect many people feel that way after such a long and difficult time in the market too, like the bad news will never end and their portfolios will just keep losing value.
When planning to work in the garden, we have to try to remember to do most of our planting soon after the ground thaws and the last frost is behind us, not in the peak heat of the summer.
Same with investing, we want to look for investment opportunities as we start to see the signs of recovery, not after everything is back to being overpriced.
That being said, as we near the end of the winter and we are enjoying springtime, that's a great time to set out a plan for the upcoming planting season. The same rings true for our investment and insurance portfolios it's a great time to take stock of what you have and plan ahead for any adjustments or additions that should be made.
As always, feel free to call the office and share your thoughts and concerns. We're here to listen and offer guidance whenever we can.
Fondly,
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| Market Commentary
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The S&P 500 was up last week, its 7th gain in the last 8 weeks. The stock index is down 2.0% YTD (total return) and at 878 the S&P 500 finds itself at its highest closing level since President Obama took office in late January. Since hitting a bear market low of 677 just 8 weeks ago today (on 3/09/09), the S&P 500 has gained +30.1% (total return), equal to an increase in market capitalization of $1.7 trillion (source: BTN Research).
The stock market gains continued last week in spite of troubling economic results, indicative of the optimism and forward-thinking of investors. The size of the US economy declined during the first quarter 2009 (to $14.1 trillion), the 3rd consecutive quarter that the economy has fallen. The last time the country suffered such a negative streak was 1975 or 34 years ago (source: Commerce Department).
The key stories for the upcoming week will come on Thursday (the release of the Treasury Department's "stress tests") and Friday (the nation's monthly jobs report). Would the news that any US bank "failed" their "stress test" cause a knee-jerk reaction from its depositors? If the number of Americans that lost their jobs in April exceeds 500,000, making it 6 consecutive months of job losses of that level or higher, will investors maintain the confidence they have shown in the last 2 months? |
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1. TEST RESULTS - The findings of the Treasury Department's "stress tests" completed on 19 large US banks will be released on Thursday (5/07/09) this week. The tests were originally announced by Secretary Tim Geithner on 2/10/09. The banks were put through financial simulations to determine if they could survive a 2-year economic slump that included national unemployment rates above 10% and an additional drop in home prices of 25% from today (source: Treasury Department).
2. CLINTON AND BUSH - Over the 8 years 1993-2000 (i.e., President Bill Clinton's 8-years in the White House), household debt grew +83% from $4.14 trillion to $7.56 trillion. Over the 8 years 2001-08 (i.e., President George W. Bush's 8-years in the White House), household debt grew +88% from $7.56 trillion to $14.24 trillion (source: Federal Reserve).
3. HEALTH CARE - The average premium last year for an employer-sponsored health plan covering a family of 4 was $1,057 per month. On average, an employee pays 26% of the total premium (i.e., $280 per month) and the employer pays the remaining 74% (i.e., $777 per month) (source: Kaiser Foundation).
4. VOTING - The 2010 mid-term elections are less than 18 months away. All 435 members of the House of Representatives and 34 of the 100 US senators will be up for re-election on 11/02/10 (source: Senate). |
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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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