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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!
First I want to wish all mothers a belated "Happy Mother's Day". I hope you had a wonderful and relaxing day.
I need some input from you, please. I want to make our weekly market review easier to read and more visually pleasing. Over the next few weeks as we adjust with the format and layout, please share your thoughts with us. I would welcome any suggestions you can offer that will help us make our newsletter a better communication.
Thanks, in advance, for your help. I look forward to hearing from you.
Fondly,
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| Market Commentary
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The government revealed last Thursday that 10 of the 19 banks subject to the scrutiny of the Treasury Department's "stress tests" had failed and have been ordered to raise nearly $75 billion of capital within the next 6 months. These 10 banks will either sell additional common stock (thus diluting the value of existing shares) or sell assets they currently hold (e.g., non-core businesses). If the banks are unable to raise sufficient capital from private investors, the government may be asked to convert its preferred stock holdings for these banks into common stock, giving Uncle Sam more control of the companies (source: Treasury Department).
The S&P 500 shrugged off the banking news, along with other lackluster economic data, and rose again last week, putting the index up +3.9% YTD (total return) and up +37.9% in the last 9 weeks. The total of jobs lost in April was 539,000, making it 4.2 million jobs the US economy has lost in the last 6 months. The price of oil reached $58.63 a barrel, up +15% in just 2 weeks. The price of gasoline has climbed +16 cents a gallon over the same period, up +60 cents a gallon YTD (source: Department of Labor, New York Mercantile Exchange).
College graduations continue across the nation this week, as the Class of 2009 drops an estimated 1.5 million graduates into the work force. Employers are expected to hire 22% fewer graduating seniors in 2009 than they did just 1-year ago (source: National Association of Colleges and Employers). |
| Notable Numbers for the Week:
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1. LOW POINT, THEN UP - After the 2000-02 bear market bottomed on 10/09/02, the S&P 500 gained +18.4% (total return) over the next 8 weeks. After hitting a bear market low on 3/09/09, the S&P 500 gained +34.5% (total return) over the next 8 weeks (through last Monday). The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: BTN Research).
2. IN THE STOCK MARKET - The defined benefit pension plan of the Federal Reserve had 66% of its assets allocated to stocks as of 1/01/09 (source: Wall Street Journal).
3. NEXT YEAR - A majority of economists surveyed (69%) in late April believe the nation's unemployment rate will peak at 9.8% at a date after 1/01/10 (source: USA Today).
4. SAVING MONEY EACH MONTH - US homeowners that refinanced their mortgages in the first quarter 2009 will save an aggregate $2.5 billion over their first 12 months of payments (source: Freddie Mac).
5. A MILLION LESS - As of 3/31/09, there were 3.7 million existing homes for sale in the USA. Just 8 months earlier (7/31/08), the number of homes on the market was 4.7 million (source: National Association of Realtors). |
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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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