JP Bio PicJ. PINK ASSOCIATES, Inc.,

FINANCIAL ADVISORS
 
 
555 Taxter Rd. Suite 190                                      Ph- (914)524-7770
Elmsford, NY  10523                                          Fax- (914)524-7771
 
 
500 Summit Lake Dr. Suite 120
Valhalla, NY  10595
Weekly Market Review
In This Issue
Market Commentary
Notable Numbers
Client Spotlight
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Greetings!
JP Bio Pic
In last week's WMR, I shared with you my discovery that I'm not as well rounded as I had originally hoped. It seems this discovery has opened my eyes to the fact that this goes much deeper than I would have ever guessed. Meaning, after looking in the mirror for the past week I have come to realize, I plan everything. Well, almost everything
I have discovered/ noticed/ become aware of, the following;
When I grocery shop, I make a list. This helps me ensure I don't forget anything and helps me not waste money on "stuff" I don't need. No big deal you might say, lots of people do that. Well here's the rub, I organize my list of items in the order of the aisles of the supermarket so I can get what's on the list and get out as quickly as possible.
  •  When I cook (which, according to Jo Ann is not often enough), I create a timeline. Meaning I figure out each step and put it in its proper place on the time line so everything is ready to serve at the same time and so nothing gets forgotten or left out. 
  • When I get to the office each day I start by creating my "to do/ follow up on" list. This usually starts with a review of yesterdays list to see if there is anything that did not get completed, if so (and there's almost always something) that/ those items for the beginning of today's list.
    Well, I guess you get the picture. I'm a planner through and through. I guess my career is simply a natural extension of the rest of my overly organized life. Next week I'll bore you the story of my home theatre project. I hope you have a wonderful week.
  • Market Commentary

     
    JP Bio Pic
    Bond investors were voting with their pocketbooks last week as a $118 billion Treasury auction did not attract the quantity of buyers that had been expected.  As a result of the weak demand, bond prices fell and yields rose, sending market watchers into a "Chicken Little" mindset, suggesting that the USA's history of excessive borrowing may have caught up with our near record low interest rates.  The Treasury bond calendar for all of 2010 has $1.6 trillion of debt to be sold (source: Treasury Department). 
     
    The S&P 500 reached a bull market closing high last Tuesday (3/23/10), up +74% since bottoming in early March 2009.  The close of 1174 was the stock index's best finish to a trading day since 9/26/08 or nearly 1 ½ years ago.  With only 3 days remaining in the first quarter, the S&P 500 is up +5.2% YTD (total return), a performance that has not been exceeded in the first 3 months of any year since 1998 (source: BTN Research).    
     
    Next up for President Obama and the Democrat-controlled Congress is reform of Wall Street.  The House passed its version of financial regulatory overhaul on 12/11/09, only to see the bill buried in political limbo until last Monday (3/22/10), when the bill moved to the full Senate after passage by the Senate Banking committee.  The Senate version of the bill gives the US government the power to break up financial firms considered to be a threat to our economy (source: Senate).

    Notable Numbers

    1.     MINI-TUMBLES - Since beginning a bull market rally on 3/10/09, the S&P 500 stock index has had 4 declines of at least 5% (not counting the impact of reinvested dividends).  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.     AND WHAT IF IT DOESN'T? - The Congressional Budget Office (CBO) has estimated the combination of HR 3590 (the Senate health care bill) and HR 4872 (the reconciliation bill) would produce a net reduction in federal deficits of $143 billion over the 10 years from 2010-2019.  However, in the footnotes of the projections, the CBO admits they "expect that Medicare spending would increase significantly more slowly during the next two decades than it has increased during the past two decades (per beneficiary, after adjusting for inflation)" (source: CBO).    
     
    3.     TOO EXPENSIVE - When Medicare was signed into law by President Johnson in 1965 (former President Harry Truman was the # 1 enrollee into Medicare), the projected annual cost of Medicare in 1990 (i.e., 25 years in the future) was $12 billion.  The actual cost of Medicare was $13 billion just 10 years later (1975) and was $98 billion in 1990, more than 8 times as large as the original 1965 forecast (source: Office of Management and Budget).    
     
    4.     DOUBLE-DIGIT - The average interest rate nationwide on a 30-year fixed rate mortgage was at least 10% for the 12 consecutive years of 1979-1990 (source: Housing and Urban Development).

    Client  Spotlight - Butch Gilbert, Effective Electric

     
    Butch GilbertOur first client in the "Spotlight" is Butch Gilbert.
     
    Butch and his wife, Danielle live in Cortlandt Manor, NY with their two children. Butch owns Effective Electric LLC. Effective Electric is a full service electrical company. 
     
    Q. What type of customers do you serve?
    A. We are able to handle all phases of residential and light commercial electrical work.
     
    Q. Is any job too small, or for that matter, too big?
    A. No, we are full service electrical contractor. We will provide services from replacing a broken light fixture or switch, to installing new electrical wiring for a renovation or addition.
     
    Q. What geographical area do you serve?
    A. All of Westchester and Putnam counties. We also serve the neighboring sections in CT.
     
    Q. Do you have a website?
    A. Yes, www.EffectiveElectric.net 

    Q. How can people contact you if they need you?
    A. They can call me at (914) 737-2651 or they can email me at EffectiveElec@aol.com 

    Q. How do you typically get new Customers?
    A. The majority of our new business comes in as referrals from our existing customers.
     
    Q. What sets you apart from your competition?
    A. We work directly with the customer and keep them informed/ involved from the estimate to
        completion, while always keeping their budget in mind.
     
    Q. Are you licensed?
    A. We are fully licensed and insured in Westchester and Putnam counties as well as in CT.
     
    Q. Do you have a slogan?
    A. "We make sure you're never in the dark."
     
    Q. If a customer needs work that requires a permit; can you help in getting that permit?
    A. Yes, an electrician is required to obtain the proper permits for any job they do where a permit    is necessary. We often have to show that our insurances and licenses are current and in good         standing in order to obtain that permit.
     
    Q. Do you charge for job estimates? If so, what is that fee?
    A. No.
     
    Q. Is there a way to be sure an electrician is licensed and insured??
    A. Yes, you can check them out at (www.westchestergov.com) then go to consumer protection, then to the specific contractor.  You should ALWAYS be sure that the electrician you hire is licensed and insured.
     
    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
     
     
    At J. Pink Associates, we do comprehansive 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.
     
     
    This material represents as assessment of the market and economic environment as a specific point in time and is not intended to be a forecast of future events, or a guarantee of future events, or a guaranteew 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 notpurport 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.  Part performance does not guarantee future results.  The S&P 500 is an unmanaged index of 600 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 Registerd 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.