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TrimTabs
- Press Release - Jan 18, 2005 Santa
Rosa, CA - January 18, 2006 - TrimTabs Investment Research reports that
the take-home pay of all Americans paying taxes surged 9.5% in 2005 based
on data from the U.S. Department of the Treasury. "A staggering $486.5
billion was added to the U.S. economy as take-home pay soared from $5.106
trillion in 2004 to $5.593 trillion in 2005," said Madeline Schnapp,
Director of Macroeconomic Research. "Moreover, growth in take-home
pay is accelerating over year-end and the beginning of 2006. Our indicators
are not showing any sign of the economic slowdown for which many on Wall
Street are bracing." While
TrimTabs estimates that $47 million has flowed out of U.S. equity mutual
funds so far in January, the Federal Reserve's latest H.6 release reports
that more than $57 billion poured into savings deposits, small-denomination
certificates of deposit, and retail money market funds from the end of
November 2005 through January 2, 2006. "All of the excess take-home
pay Americans are generating could provide ample fuel to sustain a January
rally when more of it flows into U.S. equities," noted Schnapp. "Historically,
U.S. stock prices have tended to rise when growth in take-home pay is
strong." CAPTION:
Comparing after-tax income, or take-home pay, to the S&P 500, TrimTabs
notes upward momentum. Sources: TrimTabs Investment Research and U.S.
Department of the Treasury. View
PDF File. # # # Madeline Schnapp is director, macroeconomics and the editor of TrimTabs Weekly Personal Income and TrimTabs Monthly Employment Analysis. She is a frequent speaker in the financial industry, most recently presiding at the National Association for Business Economics and the American Association of Individual Investors. TrimTabs
Investment Research is the only independent research service that publishes
detailed daily coverage of U.S. stock market liquidity, including mutual
funds and exchange-traded funds, as well as weekly withheld income and
employment tax collections. Founded by Charles Biderman, TrimTabs has
provided institutional investors - including hedge fund managers, market
strategists, and portfolio managers - with trading strategies since 1990.
TrimTabs liquidity research is unique. It is a macro timing tool to predict
the direction of the stock market. For sample research and subscriptions,
please visit www.TrimTabs.com. CONTACT: |