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Mike's Weekly Economic Updates

| June 10, 2019
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Click HERE for the Weekly Economic Update

  1. THIS YEAR - The S&P 500 stock index is up +15.7% YTD (total return) through last Friday 6/07/19, in spite of suffering a 6.6% tumble (total return) between 4/30/19 and last Monday 6/03/19.

 

  1. SIX-TO-ONE RETURN - The average American worker who retires next year (in 2020) will have paid $36,000 in Medicare taxes during his/her working lifetime, far less than the $229,000 in Medicare benefits that he/she is projected to receive.  The projected lifetime benefit total is net of Medicare premiums paid by the retiree (source: Urban Institute). 

 

  1. YOU BEGIN WORK ON MONDAY - On 9/30/10, 4 million Americans had full-time jobs.  From that low point, US employers have produced an uninterrupted hiring streak of 104 consecutive months of job gains, i.e., October 2010 through and including May 2019.  That run has resulted in 20.7 million new jobs (to 151.1 million full-time workers), an average gain of +199,000 new jobs per month (source: Department of Labor).    

 

  1. SUBJECT TO A TARIFF? - 35% of the auto parts used by domestic auto makers are manufactured outside the United States, then imported into America (source: Deutsche Bank). 

 

  1. LESS WEIGHT, MORE MILEAGE - Every 10% reduction in the weight of an auto improves its fuel efficiency by 6-8% (source: Department of Energy). 

 

  1. BIGGEST CUSTOMER - 80% of Mexico’s exports are shipped to the United States (source: Financial Times).

 

  1. AMERICAN FARMER - Net farm income in the United States (i.e., total gross income in excess of total expenses) is projected to be $69.4 billion in 2019, down 44% from its peak level of $123.4 billion in 2013 (source: Department of Agriculture). 

 

  1. BAD BANK - The Enloe State Bank of Cooper, TX failed and required a bailout from the Federal Deposit Insurance Corporation (FDIC) on 5/31/19, the first bank failure in the United States in 17 ½ months.  That’s the longest stretch between bank failures since 2/02/07 or more than a dozen years ago (source: FDIC). 

 

  1. BIG BRAIN - James Holzhauer’s run on the game show Jeopardy! ended last Monday 6/03/19 after 32 straight wins.  He provided the wrong answer to just 36 questions in 33 days (source: ESPN). 

 

Have a great week!

Michael J. Levine, CLU, ChFC

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