Bill’s By The Number$

Posted by: Vanessa Guadiana | Posted on: November 21st, 2014 | 0 Comments

1. LATE IN THE YEAR – The S&P 500 stock index closed at its calendar year high during the month of December in 16 of the last 30 years, i.e., 1984-2013.  The index’s high close (so far) during 2014 of 2064 was achieved just last Friday 11/21/14.  The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation.  It is a market value weighted index with each stock’s weight in the index proportionate to its market value (source: BTN Research).
2. THREE – Next year (2015) will be the 3rd year of Barack Obama’s 2nd 4-year presidential term.  The S&P 500 has been positive on a total return basis during 19 of the last 20 “presidential 3rd years” (source: BTN Research).
3. NOT BIG EARNERS – 86% of the 51.8 million tax returns filed in 2012 that did not pay any federal income tax reported less than $30,000 of adjusted gross income (source: Internal Revenue Service).
4. MAJORITY PAY NOTHING – 66% of the 67.6 million tax returns filed in 2012 that reported less than $30,000 of adjusted gross income did not pay any federal income tax (source: Internal Revenue Service).
5. FALL OF THE AUTO EMPIRE – Detroit is the 18th largest city in the United States today.  In 1940, Detroit was the 4th largest city in the country (source: Census Bureau).
6. PENSION BACKSTOP – The Pension Benefit Guaranty Corporation (PBGC) was forced to take over an average of 10 failed pension plans per month over the last 10 fiscal years (2005-2014), a total of 1,197 over the entire decade.  The PBGC protects pension plans in the private (non-government) sector (source: Pension Benefit Guaranty Corporation).
7. FINALLY – After reporting growth of +1.7% in the 3rd quarter 2014, Greece is on track to grow its economy in 2014.  That result will end 6 years of recession (2008-13) in Greece (source: Hellenic Statistical Authority).
8. GOING BACKWARDS – Japan’s economy contracted 1.6% in the 3rd quarter 2014, after contracting 7.3% in the 2nd quarter.  With 2 consecutive quarters of decline, Japan is officially in a recession (source: BTN Research).
9. O CANADA! – Only 4.1% of US exports are sold to buyers in Japan.  19.2% of US exports are sold to buyers in Canada (source: Commerce Department).
10. MEGADEAL – Per a divorce settlement announced on 11/10/14, Sue Ann Hamm will retain a California ranch and an Oklahoma home, in addition to receiving a lump sum of $322 million by 12/31/14 and monthly payments of $7 million beginning 1/01/15 and continuing for 93 months (i.e., 7.75 years).  The $7 million a month payments will total $650 million over time, or twice the size of the $325 million baseball contract signed by Giancarlo Stanton on 11/17/14.  Stanton’s contract was the largest ever signed by an American athlete (source: BTN Research).
11. WE TEACH THE WORLD – 50.2% of the 886,052 foreign students studying at US colleges during last year’s school year (2013-14) are natives of China, India or South Korea.  New York University (NYU) has more foreign students than any college in the United States (source: Institute of International Education).
12. AT THE BOTTOM – The 3 lowest rated states in the United States, as measured by their credit rating as ranked by Standard & Poor’s, are Illinois (rated A-), New Jersey (rated A) and California (rated A+).  An “A” rating is defined by S&P as a “strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances” (source: S&P).
13. WELL INTO HIS/HER EIGHTIES – In the year 2000, an average 65-year old American male had a life expectancy of 19.6 years.  Today, an average 65-year old American male has a life expectancy of 21.6 years, an increase of 2.0 years or 24 months.  In the year 2000, an average 65-year old American female had a life expectancy of 21.4 years.  Today, an average 65-year old American female has a life expectancy of 23.8 years, an increase of 2.4 years or 29 months (source: Society of Actuaries).
14. BIG IMPROVEMENT – As of 9/30/14, 1 out of every 12 mortgages is either delinquent or is in the foreclosure process.  As of 12/31/09, 1 out of every 7 mortgages was either delinquent or was in the foreclosure process (source: Mortgage Bankers Association).
15. GO PRO – The largest “metropolitan statistical area” (MSA) in the USA that does not have a professional sports team is the metropolitan area that includes Riverside, CA, home to 4.2 million people.  There are 2 MSAs in the country with populations less than half the size of Riverside’s 4.2 million that are home to a pro sports team.  The 2 cities are Kansas City, MO and Cleveland, OH (source: USA Today).

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