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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 - 5/09/2011 |
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| Greetings! |
Here is your weekly tip - As summer is approaching, now might be the time to start making vacation plans. What does this have to do with financial planning and investing? No, I'm not about to suggest a pilgrimage to Wall Street and the NYSE, although I would get a kick out of that, I recognize you probably would not. I'm simply saying if you plan ahead, you are more likely to get a better deal. My suggestion would be to start by determining just how much you wish to spend on your vacation and plan from there. Perhaps you will find more options available by planning early. Locking in costs before they start to rise is usually a very comforting feeling.
Wishing you a great week. |
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Market Commentary |
 The news of Osama bin Laden's death, announced to the nation by President Obama a week ago yesterday (5/01/11), was welcomed news to American citizens, but surprisingly did not produce the positive bounce in stock values that many prognosticators had anticipated. Trading instead was concentrated on the bond market, driving prices up and interest rates down. The yield on the 10-year Treasury note fell to its lowest level of 2011, finishing at 3.19% by Friday's close (5/06/11). Stock investors may have focused on the multi-year highs achieved by numerous stock indices during the last week of April, electing to take some equity profits out of the market (source: BTN Research). Just when it seemed that $4 per gallon gasoline was inevitable, gas prices reversed course and turned downward. From late March (3/23/11) to Thursday of last week (5/05/11), gas prices had advanced for 45 consecutive days, peaking at $3.99 a gallon. American consumers are hoping the reversal of gas prices since then continues throughout the summer months. The wildcard going forward would be a disruptive hurricane that can interrupt refining operations in the Gulf of Mexico (source: AAA). Private sector employers added +268,000 new hires in April while 24,000 government workers (federal, state and local) lost jobs, continuing a 6-month trend. In the last half year, a total of +1.15 million new jobs have been created in the private sector, in stark contrast to 136,000 government jobs that have been eliminated (source: DOL). |
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Notable Numbers | |
1. BULL MARKET - The ongoing bull market for the S&P 500 is 26 months old today. The stock index fell to a closing bottom of 677 on 3/09/09. From that bear market low close, the S&P 500 has gained +107% (total return) through last Friday 5/06/11. 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. SMALL CAP RECORD - The all-time record closing high of the Russell 2000 was 856 set on 7/13/07. That record close from 2007 was finally exceeded just 2 weeks ago (i.e., during the last week of April 2011), culminating with a peak close of 865 on Friday 4/29/11. The Russell 2000 index is an unmanaged index of small-cap securities which generally involve greater risks (source: BTN Research).
3. WEAK DOLLAR - The US dollar hit a 1 ½ year closing low vs. the euro last week. The dollar closed at 0.6734 euros on 5/04/11, its lowest close since the dollar fell to 0.6626 euros on 12/03/09. As the US dollar weakens, the cost of foreign imports rises, increasing inflationary concerns in our country (source: BTN Research).
4. RED INK GALORE- The total debt of the US government has increased by $6 trillion in the last 5 years and by $8.5 trillion in the last decade. The total debt of the government was $14.27 trillion as of 3/31/11, up from $8.28 trillion as of 3/31/06 and $5.77 trillion as of 3/31/01. Our nation's total debt is the sum of the money we owe our creditors plus surplus funds from Social Security and Medicare that have been invested in Treasury securities, i.e., intergovernmental debt (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 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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