We have just completed halftime in America, to borrow a sports analogy, as the residents of this fair land took a much needed respite, to reflect on their revered and fragile independence. Judging from the traffic here at the Jersey Shore, at least a few souls didn’t seem to mind parting with the $3.49 per gallon it took to reach the sizzling sand and take a dip in the unseasonably warm 4th of July ocean. Then, it was back to work, for the 9 out of 10 who officially had a job, as the second half of the year began, hopefully without some of the shocks we experienced in the first half, but realizing it could very well be more of the same.
Actually, the first half ended very much like the first quarter as the news generally was focused on the same regions of the world. The US economy seemed to be on the verge of a boom, only to get mired down in international events which captured the media’s attention as the market rebounded from a 7% decline, just days before the quarter’s close, to make a fantastic comeback and post quite respectable results. The Middle East and North African uprisings raged on but were stalemated, European debt problems seemed to flare up and cool off every other week, with constant threats of a Greek default. Japan has put on its game face and set out to rebuild a tsunami battered economy, while so many seem just so enamored with “everything China”. It reminds me of the 70’s mindset towards the Soviet model. For those of you who weren’t around then or don’t remember the history, suffice it to say, there is no Soviet Union now!
One major bright spot during the second quarter was the Navy Seals’ killing of bin Laden. Unfortunately, the initial euphoria was met with the stark realization his al Qaeda buddies might want revenge. While things have been quiet, the destabilizing unease due to the threat of terrorism dampens our collective consciousness. Still, it does bring us one step closer to closing a chapter which has been consuming a large part of our treasure and dividing us as a people.
The major indices were all up for the year at the halfway point, thanks to the surge during the last four trading days in June. The Dow Jones Industrial Average* closed at 12,414.34 which is a 7.2% return for the year, so far. The S&P 500*, a measure of the broader market, closed at 1,320.64 which was 5 points lower than its close for the first quarter, but still a 5% return thus far for 2011. Finally, the NASDAQ*, the bell weather of technology, finished the first half at 2,781.07, 8 points lower than the first quarter, but still a 4.5% return for the year. Considering the headwinds the market faced during the first half of the year, and after two nearly 7% corrections, a positive return was a lot like a small lead at halftime; it felt good, but you don’t want to get complacent, because the game could take many twists and turns before time expires.
Speaking of twists and turns, all of the fuss about the debt limit needs a bit of clarification, as the August deadline looms. Look for a last minute compromise that raises some taxes and makes some budget cuts, possibly even to Medicare and Social Security. To play chicken with the debt ceiling, which in effect is gambling with the credibility of the government to make its interest payments, would be as devastating to the markets as when Congress failed to initially approve the TARP legislation. It would be nice for politicians to stop all of the rhetoric and talk plainly about the need to live within a budget like you & I must do.
HAPPY 4TH OF JULY From the Jersey Shore!
PRIVACY POLICY & NEW ADDITION TO OUR WEBSITE
PRIVACY POLICY
At Jersey Benefits Advisors and Jersey Benefits Group, Inc. protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use information from you on applications and other forms as well as information about financial transactions with us and from non-affiliated third parties. This “nonpublic personal information” is obtained in connection with providing a financial product or service to you.
We do not disclose any nonpublic personal information about you without your express consent, except as permitted by law. We may disclose the nonpublic personal information we collect to persons or companies that perform services on our behalf.
We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you.
We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information at all times.
ONLINE LIFE INSURANCE
We have partnered with ORG, Inc. to develop and market an online life insurance quotation system that allows individuals to enter their information and receive competitive quotes from major insurance carriers online. In most cases the application can also be completed online. There is also a direct toll free line to speak to a customer service representative, as well as an email link to ask questions or receive assistance with the quotation or application process. The quotes can be obtained from our website.
This system eliminates speaking to numerous agents who call with quotes, which is the model used by many websites that market insurance quotes. For people who wish to complete the process totally on their own, and like to evaluate numerous quotes independently before applying for insurance, this site should satisfy their needs. Quotes are free and no money is exchanged until the individual is approved for the policy quoted.
Of course, anyone who is interested in talking to an insurance advisor, who will meet with the client in the traditional face to face manner, simply needs to contact the company either by telephone or email to set up an appointment. Through the ORG network, we can assist individuals outside the state of NJ to locate insurance professionals who can meet with them face to face. The toll free number to call, outside NJ, is (855) 802-4123. Within the state of NJ, clients can contact me directly.
INVESTOR PSYCHOLOGY: BUY LOW, METHODICALLY & DISCIPLINED
Investor psychology has been a topic receiving much attention recently, as many of the tried and true philosophies of investing have been questioned. With all of the talk of a lost decade of returns, the focus has been on how to beat the market consistently, utilizing everything from alternative investments to holding physical commodities. As we’ve discussed time and time again, market timing and excessive trading can be very detrimental to a portfolio. As James Stewart stated in the July issue of Smart Money, “If market peaks tend to be unremarkable, market lows tend to arrive when times seem apocalyptic”. That’s why I continue to believe buying quality funds in as many sectors of the economy as you can, and dollar cost averaging into them constantly, is still the best overall strategy.
* THE S&P 500, THE DJIA AND THE NASDAQ ARE UNMANAGED INDEXES THAT ARE WIDELY USED AS INDICATORS OF MARKET TRENDS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE OF THESE INDEXES DOES NOT REFLECT FEES AND CHARGES ASSOCIATED WITH INVESTING. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
Dollar Cost Averaging through a systematic savings plan is an excellent way to build an account without a sizeable initial investment. Saving a portion of our pay each month is very important. Company sponsored pension plans are one method to save and should be used for retirement. Other systematic investment accounts, SUCH AS ROTH IRA’S, TRADITIONAL IRA’S, COVERDELL ACCOUNTS, 529 PLANS, BROKERAGE ACCOUNTS AND ANNUITIES can also be opened, and debited directly from your checking or savings account. For more information, just call to set up an appointment.
REFERRALS ARE ALWAYS WELCOME
COMPANY INFORMATION:
Investment Advisory Services offered through:
Jersey Benefits Advisors
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257
Email: kaighn@jerseybenefits.com
Http://www.jerseybenefits.com
Securities offered through:
Transamerica Financial Advisors, Inc.
A registered Broker/Dealer
570 Carillon Parkway
St. Petersburg, FL 33758-9053
800-245-8250
Member FINRA & SIPC
Transamerica Financial Advisors, Inc. is
not affiliated with Jersey Benefits Advi-
sors.
Third Party Administration and Insurance
Services offered through:
Jersey Benefits Group, Inc.
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257
Email: kaighn@jerseybenefits.com
Http://www.jerseybenefits.com/
All opinions expressed in this newsletter are
solely those of John Kaighn & Jersey Benefits
Advisors.
LD 41031-07/11
