Facts That Make a Difference
1. THE CHINA MARKET- The number one market for the Mercedes high end flagship, the S class, is CHINA. Mercedes sales are off the charts this year – up 50% compared with the same period in 2008 (source: Wall Street Journal).
2. GREAT RUN - As of the close of business on 8/31/09, the S&P 500’s streak of consecutive “up-months” reached 6 (i.e., March through August), gaining +40.5% on a total return basis (source: Standard & Poor’s).
3. MORTGAGE INTEREST RATES - The yield on the 10-year Treasury note rose from 2.22% on 12/31/08 to 3.40% on 8/31/09. The +1.18% increase was the largest over the January-August period since 1999. The 10-year Treasury note is one of the largest influences on home mortgage rates (source: Federal Reserve).
4. BUNDLE OF JOY - A family with before-tax income of at least $100,000 that had a newborn in 2008 will spend $367,000 (in 2008 dollars) to raise that child through age 17 (i.e., not including the cost of college). After factoring in the impact of inflation, the 17-year cost rises to $484,000 (source: Department of Agriculture).
5. JUST A LITTLE OFF ON THE FORECAST – Treasury Secretary Hank Paulson announced a plan on 9/07/08 (i.e., a year ago today) where the government would take control of mortgage giants Fannie Mae and Freddie Mac. The Treasury Department acquired $1 billion of preferred stock in each company, warrants for 80% of their common stock and pledged up to $200 billion of financial support in anticipation of future mortgage defaults. The initial $200 billion pledge by the government has since been doubled to $400 billion (source: Wall Street Journal).
6. LOOKING UP - Nearly half of Americans surveyed (46%) believe the US economy is going to improve in the upcoming 12 months, double the percentage (22%) that believe the economy will get worse (source: Harris Poll)
7. STILL OWE MONEY - 27% of retirees have at least $50,000 of debt. Only 33% of retirees have no debt (source: Society of Actuaries).
2. GREAT RUN - As of the close of business on 8/31/09, the S&P 500’s streak of consecutive “up-months” reached 6 (i.e., March through August), gaining +40.5% on a total return basis (source: Standard & Poor’s).
3. MORTGAGE INTEREST RATES - The yield on the 10-year Treasury note rose from 2.22% on 12/31/08 to 3.40% on 8/31/09. The +1.18% increase was the largest over the January-August period since 1999. The 10-year Treasury note is one of the largest influences on home mortgage rates (source: Federal Reserve).
4. BUNDLE OF JOY - A family with before-tax income of at least $100,000 that had a newborn in 2008 will spend $367,000 (in 2008 dollars) to raise that child through age 17 (i.e., not including the cost of college). After factoring in the impact of inflation, the 17-year cost rises to $484,000 (source: Department of Agriculture).
5. JUST A LITTLE OFF ON THE FORECAST – Treasury Secretary Hank Paulson announced a plan on 9/07/08 (i.e., a year ago today) where the government would take control of mortgage giants Fannie Mae and Freddie Mac. The Treasury Department acquired $1 billion of preferred stock in each company, warrants for 80% of their common stock and pledged up to $200 billion of financial support in anticipation of future mortgage defaults. The initial $200 billion pledge by the government has since been doubled to $400 billion (source: Wall Street Journal).
6. LOOKING UP - Nearly half of Americans surveyed (46%) believe the US economy is going to improve in the upcoming 12 months, double the percentage (22%) that believe the economy will get worse (source: Harris Poll)
7. STILL OWE MONEY - 27% of retirees have at least $50,000 of debt. Only 33% of retirees have no debt (source: Society of Actuaries).
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