Facts That Make A Difference
1. CHINESE CURRENCY - It was nearly 4-years ago (7/21/05) that China announced its fixed exchange rate (i.e., one Chinese Yuan was set equal to 12.08 US cents) that had existed since 1994 had ended and the Yuan would now be allowed to rise in value. The US began pressing China in May 2005 to revalue the Yuan (aka the renminbi) by at least 10% or face protectionist action such as a 27.5% tariff on all imports from China. As of the close of trading last Friday, the Yuan had risen +21% to 14.64 US cents but has been flat at that level over the last 12 months (source: Associated Press).
2. RENT VERSUS OWN - 35 million households rent an apartment. 76 million households own a home. Of the 76 million homeowners, 25 million own their home free-and-clear of debt and the remaining 51 million have a mortgage (source: American Housing Study, Census Bureau).
3. VACANCY - The national vacancy rate for apartments is 7.5%, its highest level since 1987 (source: Bloomberg).
4. INVESTING - 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. Our current recession began in December 2007 (source: Standard & Poor’s).
5. SPENDING LESS - The personal savings rate in the USA at the end of April 2009 was 5.7%. Just over a year earlier (i.e., 3/31/08), the nation’s personal savings rate was 0.2% (source: Commerce Department).
2. RENT VERSUS OWN - 35 million households rent an apartment. 76 million households own a home. Of the 76 million homeowners, 25 million own their home free-and-clear of debt and the remaining 51 million have a mortgage (source: American Housing Study, Census Bureau).
3. VACANCY - The national vacancy rate for apartments is 7.5%, its highest level since 1987 (source: Bloomberg).
4. INVESTING - 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. Our current recession began in December 2007 (source: Standard & Poor’s).
5. SPENDING LESS - The personal savings rate in the USA at the end of April 2009 was 5.7%. Just over a year earlier (i.e., 3/31/08), the nation’s personal savings rate was 0.2% (source: Commerce Department).
Comments