Facts That Make a Difference
1. RIGHT, BUT EARLY – Last Friday was the 12-year anniversary of the famous “irrational exuberance” speech (given on 12/05/96) by former Fed Chairman Alan Greenspan. The S&P 500 rose +105% after Greenspan’s comments were made about what he believed to be unrealistic stock values, ultimately peaking on 3/24/00 or more than 3 years later (source: Federal Reserve, BTN Research).
2. LESS IN STOCKS - The average American worker that is participating in his/her employer’s pre-tax 401(k) plan has 54% of retirement assets invested in the stock market. One year ago, the average balance in equities was 68% (source: Hewitt Associates).
3. WHOOPS – At the end of August, 9 Wall Street equity strategists predicted where the S&P 500 would finish the year 2008. Their average year-end forecast was 1363. The stock index close last week at 880 (source: Barron’s).
4. GAS - 100 days ago . . . the nationwide average price of a gallon of gasoline was $3.67. The average gas price fell for 86 consecutive days, a streak that ended last Saturday (12/13/08). The cost of a gallon of gasoline dropped to $1.66 on Saturday, down $2.01 from 100 days ago (source: AAA).
2. LESS IN STOCKS - The average American worker that is participating in his/her employer’s pre-tax 401(k) plan has 54% of retirement assets invested in the stock market. One year ago, the average balance in equities was 68% (source: Hewitt Associates).
3. WHOOPS – At the end of August, 9 Wall Street equity strategists predicted where the S&P 500 would finish the year 2008. Their average year-end forecast was 1363. The stock index close last week at 880 (source: Barron’s).
4. GAS - 100 days ago . . . the nationwide average price of a gallon of gasoline was $3.67. The average gas price fell for 86 consecutive days, a streak that ended last Saturday (12/13/08). The cost of a gallon of gasoline dropped to $1.66 on Saturday, down $2.01 from 100 days ago (source: AAA).
Comments