Bill’s By The Number$

Posted by: Vanessa Guadiana | Posted on: September 14th, 2015 | 0 Comments

1. MARKET CAP NUMBERS – The average market capitalization of individual stocks within the S&P 500 index was $37 billion as of 8/31/15.  The largest capitalized stock was worth $650 billion and the smallest capitalized stock was worth just $2.4 billion.  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. ONE MEASUREMENT – The price-earnings (PE) ratio of the S&P 500 as of the close of trading on Friday 9/11/15 is 19.8.  The historical PE ratio for the index is 15.6.  This PE ratio calculation is based upon trailing 12-month “as reported” earnings per share for the S&P 500 companies (source: S&P).  
3. A SINGLE PERCENT – Total foreign aid spending by the US government in fiscal year 2015 (i.e., the 12 months ending 9/30/15) is projected to be $39.3 billion or 1.0% of our government’s projected spending of $3.759 trillion that is forecasted for the fiscal year that ends in 2 weeks (source: Office of Management and Budget). 
4. LUMP-SUM NEEDED – A present value (PV) amount of $179,000 is required to fund a $1,000 per month payment for 20 years with a 3% annual increase for maintenance of purchasing power assuming a +6% annual rate of return is maintained into the future.  The PV amount is $237,000 if the required payment period is 30 years.  The calculations ignore the impact of taxes and are for illustrative purposes only and are not intended to reflect any specific investment alternative (source: BTN Research).  
5. HIGH AND LOW – 46.0% of tax returns filed in 2013 reported adjusted gross income (AGI) less than $30,000.  3.8% of tax returns reported AGI of at least $200,000 (source: Internal Revenue Service).   
6. TAXES – Americans filed 147.4 million tax returns in 2013.  64% of the returns (94.6 million) paid federal income tax while 36% of the returns (52.8 million) did not pay any federal income tax (source: Internal Revenue Service). 
7. WHAT’S IN YOUR WALLET? – An adjusted gross income level of at least $428,713 was needed to rank in the top 1% of taxpayers for tax year 2013.  An adjusted gross income level of at least $127,695 was needed to rank in the top 10% of taxpayers for tax year 2013 (source: Internal Revenue Service).    
8. HEALTH COVERAGE – An estimated 11.7 million Americans enrolled through either their state marketplace (i.e., health insurance exchange) or through the federal marketplace during the 2015 enrollment period.  As of 6/30/15, 9.9 million (of the 11.7 million) are current with their monthly premium payments.  Of the 9.9 million with insurance, 8.3 million are receiving a tax credit that averages $270 per month (source: Health and Human Services).      
9. NEARLY FIVE YEARS LATER – When the Bowles-Simpson commission recommended $4 trillion in tax increases and lower government spending on 12/01/10, the national debt was $13.835 trillion.  The national debt is $18.152 trillion today (source: Treasury Department).     
10. GLOBAL CRISIS – By current law, the United States can admit up to 70,000 refugees into our country during fiscal year 2015 based upon humanitarian concerns (source: Immigration and Nationality Act, Section 207).  
11. ADDING TO ITS LABOR FORCE – Germany’s government announced last Tuesday (9/08/15) that it is able to accept as many as 500,000 refugees a year for the next “several years.”  The humanitarian offer may also have an employment benefit to the country as the refugees restock Germany’s aging workforce (source: USA Today).  
12. HELP WANTED – Job openings in the USA as of 7/31/15 were 5.8 million, up from just 2.1 million as of 7/31/09.  The latter number was the low point recorded during the 2008-09 recession (source: Department of Labor).    
13. ANYONE WITH A BIRTHDAY TODAY? – With just 23 people in a room, there is a 51% chance that 2 people in the group have the same birthday (source: BTN Research).  
14. KEEPING PACE – The average hourly wage of a worker in the private sector (i.e., non-government job) as of 7/31/15 was $25.01.  The average hourly wage of a worker in the private sector as of 7/31/07 was $21.00, i.e., before the 2008 recession began.  The $4.01 pay increase over 8 years equates to a +2.2% annual increase in wages.  Inflation in the United States (using the “consumer price index” or CPI) increased +1.7% per year over the same 8-year period (source: Department of Labor).    
15. GOOD ATHLETE – Sam Byrd played in the World Series in 1932 for the New York Yankees as a late inning defensive replacement for Babe Ruth.  Byrd later played on the PGA tour, winning 6 times.  Byrd is the only person ever to play in a World Series game and in the Masters, a golf tourney he played 5 times (source: BTN Research).

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