Investing After A Recession Begins
The S&P 500 has gained an average of +13.1% per year (total return) for the 10-year period that started on January 1st of the calendar year following the official beginning date of each of the last 5 recessions.
Spending Less
The personal savings rate in the USA at the end of April 2009 was 5.7%. Just over a year earlier the nation’s personal savings rate was 0.2%!
Some BIG Ones
5 of the 8 largest corporate bankruptcies in US history (as measured by assets at the time of filing) have occurred in the last 9 months.
Down A Lot From A Year Ago
The actual profits of the companies in the S&P 500 stock index on a trailing 1-year basis are 88% less today than they were 1-year ago.
Gimme A Break
A first time home buyer has until 12/01/09 to purchase a home that qualifies for a tax credit that is worth 10% of the cost of the home, up to $8,000. This tax credit is claimed on IRS Form 5405.
Too Much Debt
The average American homeowner had $1.41 of mortgage debt for every $1 of home equity as of 3/31/09.
A Few Years
53% of adults surveyed believe it will take them at least 5 years from now to grow their net worth back to the level it had reached in late 2007.
Beach Bums
9 of the 10 largest lenders of the nearly of the $1 Trillion of sub-prime mortgages originated during 2005-2006 are based in California.
No Stopping
Baby boomers are the 78 million Americans born between the years 1946-1964. 25% of this group expects to work until they die, up from 15% in December of 2007.
Keep Trying
More that 4 out of every 5 college graduates (80.3%), from the class of 2009, who have applied for jobs have been unable to find work.
Weekly News:
Mortgage Rate indicators show that rates look to be heading downward this week.Sales of new single-family homes jumped 11% in June
The 2nd QTR GDP report will be released on Friday.
