By The Numbers - May 2018Submitted by S. F. Ehrlich Associates, Inc. on May 14th, 2018
Source: Direxion Funds
May 15, 2018
- Major US retailers closed 6,955 stores nationwide during calendar year 2017, a total greater than the number of closures that occurred in any single year during the global financial crisis that began 10 years ago.
- Student loan debt, equal to $1.38 trillion as of 12/31/17, has doubled in just over 8 years. Student loan debt was $690 billion as of 9/30/09.
- The US homeownership percentage (i.e. “owner” households as a percentage of total households) was 63.4% in 2016, the lowest percentage nationwide since 1965 or 51 years earlier when the rate was just 63.0%. The homeownership percentage rose to 63.9% in 2017.
- Healthcare spending makes up 18% of the $20 trillion US economy, equal to $11,000 per year for each of our nation’s 327 million citizens.
- The average profit earned by builders of new single-family homes constructed in the USA in 2017 was 10.7% of the home’s total sales price. The average single-family home built last year had a total cost of $428,000, resulting in an average profit of $46,000.
- As of today (Monday 4/23/18), 0 banks in the United States have failed YTD and required a bailout from the Federal Deposit Insurance Corporation. As of 4/23/10, 57 banks had failed YTD. Just eight banks failed during all of calendar year 2017.
- The trucking industry has a shortage today of approximately 30,000 drivers, a critical factor behind the rising cost of moving freight in the United States. Trucks move 71% of all US freight nationwide.
- As of the end of 2017, there were 120.2 million households in the USA, split 64/36 between homeowners (77.2 million) and renters (43.0 million). Since the end of 2011 (i.e., six years earlier), the number of homeowners (75.3 million as of 12/31/11) has increased by +1.9 million while the number of renters (38.8 million as of 12/31/11) has increased by +4.2 million.
- The total return for the S&P 500 over the last 10 years (2008-2017) was a gain of +8.5% per year (total return). If you missed the ten best percentage gain days over the 10 years (10 trading days in total, not 10 days per year), the +8.5% annual gain drops to an annual gain of +1.3%.
- Of the top 50 “percentage gain days” for the S&P 500 over the last 10 years (2008-2017), only one has occurred in the last six years (2012-2017), i.e., a +3.9% gain (total return) on 8/26/15.
- When the yield on the 10-year Treasury note bottomed on 7/08/16 at 1.36%, the average interest rate nationwide on a 30-year fixed rate mortgage was 3.41%. The average interest rate on a 30-year fixed rate mortgage is 4.58% today.
- The best five trading days for the S&P 500 over the last 10 years (2008-2017) gained +50.6% (total return), more than the +50.1% gained by the other 2,513 trading days in the decade.
- By 2030, i.e., just 12 years from now, 23% of the “on-the-job” hours of Americans workers could be automated and completed by artificial intelligence and robotics.
- 64% of the 120 million households in the USA are homeowners, a total of 77 million households. 34% of the 77 million homeowners (26 million households) are mortgage debt-free.
- US utilities generated 4 trillion kilowatt hours (kWh) of electricity in 2017, split between 63% from fossil fuels (split almost equally between natural gas and coal), 20% from nuclear plants and the remaining 17% from renewable sources, e.g., hydropower and wind.
- A 30-year old employee who is investing $500 at the beginning of every month in a tax-deferred account will accumulate $588,032 by age 60 if the funds grow at 7% per year. If that individual were forced to suspend his/her monthly deferral for just five years from ages 35-39, he/she would have to earn 8.8% per year from ages 40-60 to accumulate $588,032 by age 60.
- Social Security benefits are taxed by just 13 states (i.e. 37 states do not count monthly Social Security benefits as taxable income at the state level.
- 71% of American workers have access to an employee-funded defined contribution plan (e.g. 401k plan) through their employer.