» FUNdamental Facts http://assetstrategie.com/blog Tue, 31 Jan 2012 22:21:30 +0000 en hourly 1 http://wordpress.org/?v= 4Q11 FUNdamental Facts http://assetstrategie.com/blog/2012/01/31/4q11-fundamental-facts/ http://assetstrategie.com/blog/2012/01/31/4q11-fundamental-facts/#comments Tue, 31 Jan 2012 22:21:30 +0000 Asset Strategies http://assetstrategie.com/blog/?p=649  

  • The yield on the 10-Year U.S. Treasury bond ended the year at 1.89%. This is the first time on record (60+ years) that the yield ended a calendar year below 2%.

 

  • The Dow Jones Industrial Average crossed 12,000 on a day-to-day basis, twenty-five times in 2011. – Wall Street Journal

 

  • There were 69 days, or about 1/3 of trading days during 2011, in which about 450 of the S&P 500 stocks, moved in the same direction.  This is more days than the combined total from two other volatile years, 2008 and 2009. – Lasair Capital

 

  • Since the NYSE began using decimals in 1996, there has never been a day that all 500 S&P stocks were up on the same day.  Prior to decimalization it never happened because as many as 20% of stocks would be unchanged as the minimum move was 1/16 or 6 cents. – Segall, Bryant & Hamill

 

  • “Risk on” and “Risk off”.  On August 11, 2011 there were 498 stocks that advanced for the day (S&P 500 up 4.63%).  On November 9, 2011 there were 499 stocks down for the day (S&P 500 down 3.67%). – Segall, Bryant & Hamill

Asset Strategies Portfolio Services, Inc.  is an independent institutional investment consultant located in Auburn Hills, Michigan.

For information please call (248) 373-9900.

]]> http://assetstrategie.com/blog/2012/01/31/4q11-fundamental-facts/feed/ 0 As year end draws near . . . http://assetstrategie.com/blog/2011/12/05/as-year-end-draws-near/ http://assetstrategie.com/blog/2011/12/05/as-year-end-draws-near/#comments Mon, 05 Dec 2011 17:31:08 +0000 Asset Strategies http://assetstrategie.com/blog/?p=609 During this 2011 holiday season, we will be reminded of ‘wise men’ and in turn, reflect often on those wise individuals who influenced us the most us. Let’s be reminded of these wise words:  

You cannot help the poor

by destroying the rich. 

You cannot strengthen the weak

by weakening the strong.

You cannot bring about prosperity

by discouraging thrift.

You cannot lift the wage earner up

by pulling the wage payer down.

You cannot further the brotherhood of man

by inciting class hatred. 

You cannot build character and courage

by taking away men’s initiative  and independence.

You cannot help men permanently

by doing for them what they could, and  should, do for themselves. 

Abraham Lincoln

 

 Let us hope our great nation will soon, yield a leader(s), with the wisdom, courage and strength of this great president.

Asset Strategies Portfolio Services, Inc., is an institutional, investment consultant located in Auburn Hills, Michigan.  For information please call 248-373-9900.

]]> http://assetstrategie.com/blog/2011/12/05/as-year-end-draws-near/feed/ 0 FUNdamental Facts; 3Q11 http://assetstrategie.com/blog/2011/11/14/fundamental-facts-3q11/ http://assetstrategie.com/blog/2011/11/14/fundamental-facts-3q11/#comments Mon, 14 Nov 2011 21:51:31 +0000 Asset Strategies http://assetstrategie.com/blog/?p=594
  • The third quarter stock market loss was the worst in 37 years. According to Barron’s there have been fifteen quarters since 1964 in which the S&P lost 10%plus.  Twelve of the following quarters saw rallies, with average gains of 10%.
    • As of August, Apple was the largest company in the world by market capitalization with enough cash on its balance sheet to buy Bank of America/Merrill Lynch and still have $7 billion left over.
    • The U.S. Government budget deficit for the 2011 fiscal year (ended 9/30) was $1.3 trillion, or 8.5% of of our countries annual output (GDP).
    •  This is the third-largest budget deficit in U.S. history. It was exceeded only by the budget deficits of 2009 and 2010.
    • Also from Barron’s: For every one dollar taxpayers sent to Washington, the U.S. government borrowed another 56 cents.

     

    Asset Strategies Portfolio Services, Inc. is a registered investment advisor with the SEC.  Serving institutional investors since 1992.

    2635 Lapeer Road, Auburn Hills, Michigan 48326

    248-373-9900

    ]]>     http://assetstrategie.com/blog/2011/11/14/fundamental-facts-3q11/feed/ 0     2Q11 FUNdamental Facts http://assetstrategie.com/blog/2011/08/05/2q11-fundamental-facts/ http://assetstrategie.com/blog/2011/08/05/2q11-fundamental-facts/#comments Fri, 05 Aug 2011 19:39:17 +0000 Asset Strategies http://assetstrategie.com/blog/?p=510
  • The first limit on U.S. debt was set by Congress in 1917, at $11.5 billion.  The current ceiling is set at $14.294 trillion.
  • This ceiling was actually met in June 2011. Where has the money to fund government spending since then come from? Federal retirement funds. America is borrowing from itself!
  • According to the Congressional Research Service, the U.S. debt ceiling rose 74 times since 1962, with 10 of those occurring in the past 10 years.
  • According to Investor’s Business Daily, U.S. government expenditures, from fiscal 2003 to 2011 increased by 28%. In contrast, this was about four times more than inflation and nearly six times the rate of economic growth (GDP).
  • Also from Investor’s Business Daily, U.S. government expenditures, as a proportion of GDP, increased from 20.7% in 2008 to an alarming 25.3% in 2011. In contrast, from 1996 to 2005, spending as a share of GDP never reached 20%.
  • From 2008 to 2011, the U.S. government annual budget deficit expanded each year, and the current fiscal year projection is another, $1.4 – $1.7 trillion deficit.

    • Asset Strategies Portfolio Services, Inc. is an independent institutional investment consultant located in Auburn Hills, Michigan.  For additional information please call (248) 373-9900.

    ]]>     http://assetstrategie.com/blog/2011/08/05/2q11-fundamental-facts/feed/ 0     1Q11 FUNdamental Facts http://assetstrategie.com/blog/2011/05/09/1q11-fundamental-facts/ http://assetstrategie.com/blog/2011/05/09/1q11-fundamental-facts/#comments Mon, 09 May 2011 15:06:12 +0000 Asset Strategies http://assetstrategie.com/blog/?p=405
  • From 1964-2007, the average real return for the S&P 500 in the third year (October 1st to October 1st) of a Presidential Election cycle has been 23.2% according to research by Jeremy Grantham, Chief Market Strategist at GMO, LLC.
  •  Of the 19 periods or ‘third year, calendar year results’ since Franklin D. Roosevelt, there has been one down year, finishing at -2% in 1947; also from Grantham’s research.
  •  Since the March 2009 U.S. stock market bottom, the Russell 2000 is up 143% compared to the S&P 500, up 95%. 
  •  The Russell 2000 is trading at 18x one-year forward earnings, about 1.3x the P/E of the market’s largest 200 companies. According to research by Credit Suisse, this is the highest disparity since at least 1979.
  •  At the end of 2010, U.S. national debt was $14 trillion. The U.S. population was just under 309 million. This equates to a personal debt obligation of $45,345 per person. Unfortunately, less than 50% of the population pay taxes.
  •  The Federal Reserve’s measure of inflation, CPI ex-Food and Energy is up 1.2% year-over-year ending in March.  CPI including Food and Energy was up 2.7%, more than double the Fed’s measure.
  •  In a research paper composed for the International Monetary Fund (IMF), Richard Feinberg estimates 400 gallons of oil are used per year, to provide food for each American. Foreign oil dependency?

    • Asset Strategies Portfolio Services, Inc. is an independent institutional investment consultant located in Auburn Hills, Michigan.  For additional information please call (248) 373-9900.

    ]]>     http://assetstrategie.com/blog/2011/05/09/1q11-fundamental-facts/feed/ 0     4Q10 FUNdamental Facts http://assetstrategie.com/blog/2011/02/14/4q10-fundamental-facts-2/ http://assetstrategie.com/blog/2011/02/14/4q10-fundamental-facts-2/#comments Mon, 14 Feb 2011 15:39:39 +0000 Asset Strategies http://assetstrategie.com/blog/?p=380
  • December 2010 was the 17th consecutive month of U.S. economic expansion.  The average post World War II economic recovery lasted 62 months with the shortest being 12 months during the 1980-81 recovery and the longest 120 months during the 1991-2000 recovery.
  • David Rosenberg, Chief Market Strategist at Gluskin Sheff reports the U.S. Government currently spends $1.60 on goods and services for every $1.00 of revenue taken in.  The ratio has been around $1.20 in excess spending during the two previous, severe economic downturns in the early 1980s and early 1990s.
  • Research by Capital IQ shows the average return on the S&P 500 when the Pittsburgh Steelers represent the AFC in the Super Bowl, is 25% and when the Green Bay Packers represent the NFC, is 24%.  Toss of the coin?
  • Also from Capital IQ, the S&P 500 performs better on average after an NFC win, +15%, versus an AFC win, +7%.  Both positive, however!

    • Auburn Hills, Michigan based institutional investment consultant, Asset Strategies Portfolio Services, Inc.

    ]]>     http://assetstrategie.com/blog/2011/02/14/4q10-fundamental-facts-2/feed/ 0     3Q10 FUNdamental Facts http://assetstrategie.com/blog/2010/10/27/3q10-fundamental-facts/ http://assetstrategie.com/blog/2010/10/27/3q10-fundamental-facts/#comments Wed, 27 Oct 2010 23:12:12 +0000 Asset Strategies http://assetstrategie.com/blog/?p=327 ►   The September 2010 return for the S&P 500 Index (+8.9%) was the second best September in the history of the index (the best was 14.4% in 1939).

    ►   From Ned Davis Research – the median return for the S&P 500 in a Presidential mid-term election year (2010), beginning Labor Day through the end of the calendar year, is 15%.

    ►   According to Jeffrey Saut, Chief Investment Strategist from Raymond James, the Federal Reserve’s balance sheet will increase to $3 trillion assuming $700 billion of anticipated quantitative easing.

    ►   He calculates that to spend $3 trillion in one year works out to roughly; $8.2 billion per day, or $341 million per hour, or $570,000 per minute, or $9,600 per second.

    FYI - U.S. Government spending for the fiscal years ending September 30th 2009 and 2010 was $3.52 trillion and $3.45 trillion, respectively. 2009 is the record.

    ]]>     http://assetstrategie.com/blog/2010/10/27/3q10-fundamental-facts/feed/ 0     2Q10 FUNdamental Facts http://assetstrategie.com/blog/2010/08/04/q2-2010-fundamental-facts/ http://assetstrategie.com/blog/2010/08/04/q2-2010-fundamental-facts/#comments Wed, 04 Aug 2010 11:54:02 +0000 Asset Strategies http://assetstrategie.com/blog/?p=297

    1.  The Russell 3000 Index represents 98% of the invest able U.S. equity market.  In 2009 the market capitalization of the index increased 26.4% to $13.4 trillion from $10.6 trillion.

    2.  This year Russell implemented an enhanced rule to determine country assignment for companies in their in dices that relies on three key indicators; incorporation, headquarters and trading.  Companies that are incorporated, headquartered and traded in a single country become a member of that country.

    3.  If a company’s three key indicators do not align, the primary location of assets or revenue is used to determine eligibility.  When location of assets or revenue is not reported, country assignment defaults to headquarter location.

    4.  As a result of the enhanced country assignment rule there were 42 companies removed from the Russell 3000 Index.  70% of the deletions shifted to the Russell China Index.

    5.  The financial services sector experienced the largest weight increase in the Russell 3000 Index (18.1% compared to 15.3% in 2009).  The most notable addition to the sector was Berkshire Hathaway.  The energy sector decreased by the widest margin (10% compared to 12% in 2009).

    6.  The Russell Global Index market capitalization increased to $40.8 trillion in 2010 compared to $34.9 trillion in 2009. The index has over 10,000 members and covers 61 countries.

    7.  This year excluding the U.S. a total of 956 companies were added to the Russell Global Ind ices, with Canada (110), Hong Kong (90) and India (89) experiencing the most new additions.

    ]]>     http://assetstrategie.com/blog/2010/08/04/q2-2010-fundamental-facts/feed/ 0     1Q10 FUNdamental Facts http://assetstrategie.com/blog/2010/04/16/4q10-fundamental-facts/ http://assetstrategie.com/blog/2010/04/16/4q10-fundamental-facts/#comments Fri, 16 Apr 2010 20:02:27 +0000 Asset Strategies http://assetstrategie.com/blog/?p=253
  • The U.S. economy expanded at a brisk rate of 5.6% in the 4Q09, the second consecutive quarter of growth.  Factoring out government fiscal stimulus programs, artificially low interest rates, holiday spending and seasonal employment, the actual number would be less than one-half this.
  • Expectations are for U.S. economic growth to slow throughout 2010 and 2011 as the impact of the temporary stimulus programs fade.  The International Monetary Fund (IMF) projects growth of 2.7% this year followed by 2.4% in 2011.
  • Emerging Market economies are expected to continue their fast-paced growth this year and in 2011 with IMF estimates of 6% and 6.3% respectively.  They will continue to be the catalyst behind solid estimated global economic growth of 3.9% for this year and 4.3% in 2011.
  • In a positive sign for Venture Capital funds the IPO market appears to be picking up steam with 112 IPOs from the beginning of the current bull market last March through the end of 1Q10.  There were 157 IPOs in the first year of the 2003-2007 bull market.
  • Both Moody’s and S&P credit rating agencies indicated that the U.S. Government’s uncontrolled spending and record debt level (now equal to one year’s economic output) have given them pause to re-think the country’s AAA credit rating.
  • Investors in credit default swaps (CDS), those convenient little insurance policies designed to protect your bond investment against loss in the event the issuer defaults, have increased their insurance against the U.S. Treasury’s default by 60%.
    • ]]>     http://assetstrategie.com/blog/2010/04/16/4q10-fundamental-facts/feed/ 0     4Q09 FUNdamental Facts http://assetstrategie.com/blog/2010/01/26/4q09-fundamental-facts/ http://assetstrategie.com/blog/2010/01/26/4q09-fundamental-facts/#comments Tue, 26 Jan 2010 20:31:16 +0000 Asset Strategies http://assetstrategie.com/blog/?p=219 1. In the last 75 years of index history, the annual return of the S&P 500 exceeded 2009’s return of 26.5%, 20 different times, or 27% of the time.
    2. Even though the average annual return of the S&P 500 was – 1% for the past 10 years, the latter suggests that on average, the S&P 500 return will equal or exceed 26.5% every four years.
    3. In the past 10 years, this happened twice: 2003 and 2009. In spite of a strong year, the S&P 500 still remains 28 percent below its October 2007 peak.
    4. The stock bull market of the 1980’s is largely credited to the historic rise and decline in interest rates, not significant growth in corporate earnings. Falling interest rates translated into surging P/E ratios with only a little increase in earnings.
    5. In the 1980’s, the S&P 500 rose 227% while earnings rose only 54%. Last year, lifetime interest lows were seen across the globe.
    6. True, earnings did improve last year, due mainly to one-time events (employment reductions and not replenishing inventories), but interest rates don’t have room to go substantially lower and corporate managers used up their ‘one-time opportunity’ to prop up ‘earnings’ in the recession.

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