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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
500 Summit Lake Dr. Suite 120 Valhalla, NY 10595 |
Weekly Market Review
for the week of - 5/02/2011 |
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| Greetings! |
Here's your weekly tip - What do you do with all that loose change? I got this great tip from a client that asked to remain anonymous. "In our house we have a big water jug in the corner of our coat closet. The entire family has made a habit of taking all of the loose change out of our pockets each night when we get home and putting it in the jar. At the end of the year, usually early December, we take the change to the bank and exchange it for, as our children call it, real money. We usually end up with a few hundred dollars. We take 50% and donate it. The other 50% is for us to go out for a fun night in NYC. We go see "the tree", look at the window displays and have a fun dinner in the city. It's fun to see how our pocket change adds up every year." |
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Market Commentary |
 Make it now 8 consecutive months of gains for the S&P 500. The stock index finished April with a flourish, advancing +3.0% (total return) for the month and is up +9.1% YTD through last Friday (4/29/11). It's all about the bottom line for stock investors, evidenced by earnings per share for the S&P 500 companies that are projected to be up +25% in the 2nd quarter 2011 over the same quarter from a year earlier. At today's opening value of 1364, the stock index has more than doubled (up +111% including the impact of reinvested dividends) from its 3/09/09 bear market low, a remarkable run over less than 26 months (source: BTN Research). The Fed met for the 3rd time in 2011 last week. As they have done in each of the previous 18 meetings dating back to January 2009, no change was made to short term interest rates. The first-ever press conference held by a sitting Fed chairman, shown live on both TV and the internet last Wednesday (4/27/11) did not provide any economic fireworks. Chairman Ben Bernanke skillfully answered questions from the media, reiterating the impending conclusion of their 7 ½ month long, $600 billion bond buying program, but not providing too much data that could upset either the US stock or bond markets (source: Federal Reserve). The rising price of gasoline continues its steady march back to $4 a gallon. The national average price, pegged at $3.94 a gallon yesterday (5/01/11), has now jumped 87 cents a gallon YTD in 17 weeks this year (i.e., a nickel a week). Gasoline was last at $4 a gallon in the USA on 7/25/08 (source: AAA). |
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Notable Numbers | |
1. GOOD YEAR - The trailing 12-month total return for the S&P 500 as of the end of April 2011 (i.e., the period from 5/01/10 to 4/30/11) is a gain of +17.2%, the 20th best trailing 1-year return for the stock index at the end of any month in the last 10 years, i.e., 20th best out of 120 separate 1-year "look backs." 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. DEFINE THE TERMS - The USA's current $14.3 trillion "total debt" is made up of 2 separate components. First, $9.7 trillion of outstanding Treasury securities, known as the "public debt," i.e., the money we owe to our nation's creditors. Second, an additional $4.6 trillion of funds from Social Security and Medicare that have been invested in Treasury securities, known as "intergovernmental debt" (source: Treasury Department).
3. REDUCING TAXES - The top 2 tax breaks utilized by individuals are # 1, the income tax exclusion of employer contributions for health insurance paid on behalf of employees, worth $132 billion per year in federal income taxes avoided, and # 2, the deduction of mortgage interest expense on owner-occupied residences, worth $97 billion per year in federal income taxes avoided (source: The Joint Committee on Taxation).
4. TAXES PAID- In 2008, the top 0.1% of US taxpayers paid 18.5% of all federal income taxes paid in the country. The bottom 75% of taxpayers paid 13.7% of all federal income taxes (source: IRS). |
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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 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.
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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.
NFP Securities, Inc. does not provide legal or tax advice.
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. |
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