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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 |
| Greetings!
I need clients that are interested in being written about. If you're interested, please let me know so we can set up a time to speak.
I would like to have a client slated for each month for the rest of the year. So I'm a plan ahead type of guy, no surprise here right?
I've had a few responses but would like more; if you're interested in being featured in our new client spotlight section, please let us know as soon as you can. We will spotlight on a first come first serve basis.
Wishing you a great week. |
The Federal Deposit Insurance Corporation (FDIC) announced that 4 banks failed last week, bringing the total to 20 YTD in calendar year 2010. The 4 bank closures will cost US taxpayers $1.1 billion, part of an estimated $100 billion expense that is expected to be incurred as a result of bank failures between 2009-2013. Since the beginning of 2009, 160 US banks have failed, largely as a result of toxic real estate loans made during the first half of the decade of the 2000s (source: FDIC).
It may be premature to read too much into the data, but China's role as the largest owner of US Treasuries was taken over by Japan last year. Japan now holds $789 billion of our notes and bonds, exceeding the $755 billion owned by China. If this trend would continue over time, interest rates here in the US would likely have to rise to attract other sovereign lenders (source: Treasury Department).
Americans will be able to watch on television Thursday (2/25/10) a live broadcast of a summit on health care reform. 37 lawmakers have been invited by President Obama to try and break the legislative gridlock on the issue. The attendees will spend the half-day meeting attempting to resolve the problems of mandating individual coverage, cost containment, uninsured Americans and malpractice lawsuits (source: White House). |
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Notable Numbers
1. ANOTHER BAILOUT - Fannie Mae and Freddie Mac either own or guarantee $5.3 trillion of home mortgages, 51% of the $10.3 trillion mortgage market in the USA. Mortgages backed by Fannie and Freddie that were securitized (i.e., packaged together and sold as a bond investment) that are now 4 months or more delinquent will be bought back from investors by the 2 government sponsored enterprises (GSEs). As of 12/31/09, there were $197 billion of such loans. The purchases will occur by the end of February 2010 (source: Fannie and Freddie).
2. SKIN IN THE GAME - A home buyer in China is required to have a down payment of at least 30% (source: China's National Development and Reform Commission).
3. PAPER OR PLASTIC? - Over the 25 years from 12/31/83 to 12/31/08, outstanding credit card balances in the USA grew by +10.5% per year, reaching $957 billion. From the end of 2008 to the end of 2009, outstanding credit card balances fell by 9.5% to $866 billion. The government has tracked credit card data since 1968. Last year's drop in the outstanding credit card balances nationwide was the first time ever that the year-over-year change was negative (source: Federal Reserve).
4. WHERE'S THE LOVE? - The average annual net foreign investment in US stocks and bonds (i.e., purchases in excess of sales) during the 5 years 2003-07 was $787 billion per year. The average annual net foreign investment in US stocks and bonds during the last 2 years (2008-09) was $470 billion per year (source: Treasury Department). |
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As always, if there's anything we can help you with, please feel free to call the office anytime.
I hope you have a great week.
Sincerely,
John
John W. Pink, Sr.
J. Pink Associates, Inc., Financial Advisors
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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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