1. BY THE NUMBER$ Week of May 1, 2017
Brought to you by:
Andrew Kinney -- RMA®
GreaterSt. Louis Area
618-407-0592
andy.kinney@jwcemail.com
akinney.incomeforlifemodel.com
1. YTD PERFORM ANCE - The total return of the S&P 500 for the first 4 months of 2017 (i.e., through 4/28/17) is +7.2%,
north of its +3.5% average return for the first 4-months over the last 25 years (1992-2016). The S&P 500 consists of 500
stocks chosen for market size, liquidity and industry group representation. It is a market value w eighted index w ith each
stock's w eight in the index proportionate to its market value (source: BTN Research).
2. THEIR FAVORITE OPTION - 34% of 1,019 Americans surveyed in early April 2017 picked real estate as the best long-
term investment today. 26% selected stocks as their top long-term choice (source: Gallup).
3. SELL IN M AY? – In analyzing the S&P 500 since 1990, the 6-month periods ending on April 30th have beaten the 6-
month periods ending on October 31st in 18 of 27 years, i.e., the 6-month periods that began on May 1st and November
1st from 1990 through and including 2016. The 6-month periods ending April 30th are up +638% (total return) vs. a +73%
gain for the 6-month periods ending October 31st (source: BTN Research).
4. INFLATION RETURNS - Inflation (using the Consumer Price Index) has exceeded +2% on a year-over-year basis for 4
consecutive months through March 2017, the first time inflation has had such a streak since April 2012. The Fed’s
annual inflation target is +2% (source: Department of Labor).
5. ABOVE THE M AX - Earnings up to $127,200 in 2017 are subject to payroll taxes. 90% of all earnings w ere subject to
payroll taxes in 1983. Just 82% of all earnings are expected to be subject to payroll taxes in 2017. An estimated 79% of all
earnings are projected to be subject to payroll taxes in 2027 (source: CBO).
6. LAST TWO DECADES - The US bond market (including treasury, municipal, corporate, mortgage and asset-backed
debt) has increased +239% in size in the last 20 years to $39.4 trillion as of 12/31/16, equal to grow th of +6.3% per year
(source: Securities Industry and Financial Markets Association).
7. AFTER TAX REFORM - Follow ing the 10/22/86 signing of the “Tax Reform Act of 1986,” the US economy grew by an
average of +3.8% per year for the subsequent 3-years, i.e., 1987-88-89 (source: Department of Commerce).
8. GAM ES THEY PLAY - The Congressional procedure of “reconciliation” (i.e., passage of a bill w ith a “simple majority”
instead of a “three-fifths” majority) can be used only if the legislation has been “scored” to show that the bill will not
increase the country’s deficit beyond 10 years. For this reason, past tax reform legislation has included tax changes that
“expire” within a 10-year period of time (source: Congress).
9. AGING POPULATION - By 2030 (i.e., 13 years from now ), the US could face a shortage of as many as 104,900 medical
doctors, including 43,100 primary care physicians (source: Association of American Medical Colleges).
2. 10. WHAT THEY WANT - Although 3 out of 4 American businesses (75.9%) w ould be interested in hiring a 2017 college
graduate w ith an engineering degree, just 1 out of 20 college seniors (5.2%) are majoring in some form of engineering
(source: National Association of Colleges and Employers).
11. FRANCE - The French economy is the 5th largest in the w orld. French voters w ill choose next Sunday 5/07/17 betw een
Emmanuel Macron and Marine Le Pen. The w inner’s 5-year term in office begins on Monday 5/15/17. Parliamentary
voting (France’s Congress) takes place on 6/11/17 and 6/18/17 (source: BTN Research).
12. THE M AGIC OF COM POUND INTEREST - $1 grow ing at 8% on a tax-deferred basis w ill accumulate to $10.06 over 30
years. $1 grow ing at 4% on a tax-deferred basis w ill accumulate to $3.24 over 30 years. Thus, achieving a return 2 times as
great w ill produce a balance more than 3 times as large over 30 years. This mathematical calculation ignores the ultimate
impact of taxes on the account w hich are due upon w ithdraw al, is for illustrative purposes only and is not intended to reflec t
any specific investment or performance. Actual results w ill fluctuate w ith market conditions and w ill vary (source: BTN
Research).
13. NICE NEIGHBORHOOD - The zip code w ith the highest median home value ($6.2 million) in the United States is
94027 in Atherton, CA, home to many Silicon Valley executives (source: Money).
14. COM M ON FOLK - Just 1 in every 8 adult workers (13%) has both a defined contribution 401(k) plan and a defined
benefit pension plan. All 535 members of the House and the Senate (100%) have both a defined contribution 401(k) plan
and a defined benefit pension plan (source: Center for Retirement Research).
15. FROM WAY DOWNTOWN – Stephen Curry has a career shooting average of 44% on just his 3-point attempts. Pete
Maravich, NBA star w ho played just one season w ith the 3-point shot (1979-80), had a career shooting average of 44% on
14,025 shots from the field over his 10-year career (source: NBA).
The information contained in this presentation does notpurportto be a complete description and is intended for
informational purposes only.Any opinions are those ofthe content creator and not necessarilythose of Andrew
Kinney, JWC or JWCA. This information is notintended as a solicitation or an offer to buy or sell any security or
investmentproduct. Information is solelyintended for recipients in jurisdictions where Andrew Kinneyis licensed to
engage the investing public. Investments and strategies mentioned maynot be suitable for all investors.Andrew
Kinney and JWC/JWCA do not provide tax or legal advice. Always discuss anytax or legal matters with an
appropriate professional. The S&P 500 and other such indices are unmanaged,do notincur fees or expense,cannot
be invested into directly and individual investor’s results will vary. Pastperformance is no guarantee of future results.
As with all investments,income generating programs,etc.various risks mayexist and JWC/JWCA recommends you
consultwith your financial advisor prior to making any financial decisions.
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