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Fourth Quarter 2018: New Jersey Wealth Index

The RegentAtlantic New Jersey Wealth Index (RANJWI) is a proprietary index that measures the health of the wealth in New Jersey. RegentAtlantic developed the index which is based on four major components: Employment, Home Values, Personal Income, and Stock Performance. It can range from 0 to 100, with values above 50 indicating that the State has experienced an above average environment for wealth creation.

The RANJWI’s value for the Fourth Quarter of 2018 is 54. That indicates that the environment in the State has been about average for wealth creation. The strongest driver of wealth in New Jersey has been a robust jobs market – NJ is approaching 4.2 million employed worker, a new all time record. NJ has added jobs in recent years at 1.25% per year – that’s the fastest pace since 2002 and has helped to bring the state unemployment rate down to 4.2%. To keep this trend strong the Garden State will need to attract businesses to put down roots in our state. Two developments on that front that may help – Candy Giant Mars Wrigley plans to move its corporate headquarters to Newark, bringing 1500 jobs; and Teva Pharmaceuticals, an Israeli maker of generic drugs, plans to move its U.S. headquarters to Parsippany-Troy Hills.

The weakest link in NJ wealth creation has been the performance of the stocks of NJ companies. One of NJ’s biggest industries is pharmaceuticals and life sciences, and in recent years two companies have seen their stock values depreciate. Allergan, a pharma giant legally based in Ireland but run from its offices in Madison NJ, has trailed the broad stock market after an acquisition attempt by Pfizer was blocked by regulators several years ago. Summit NJ based Celgene has struggled, too. Investors have been disappointed with the company’s reliance on one blockbuster therapy for profits and have taken its stock price down a peg as a result. Although NJ stocks overall are hitting new highs along with the broader stock market, weaker returns in these two have kept those gains more muted.

Q4 2018 New Jersey Wealth Index




Important Disclosure Information

Please remember that different types of investments involve varying degrees of risk, including the loss of money invested. Past performance may not be indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies recommended or undertaken by RegentAtlantic Capital, LLC (“RegentAtlantic”) will be profitable. Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request. This presentation is not a substitute for personalized advice from RegentAtlantic. This information is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.The Index was launched on June 30, 2013 with scores calculated and filled back to March 31, 1995. All Index calculations are based on twenty quarters (five years) of trailing data, so the earliest data in the March 31, 1995 score calculation is from March 31, 1990.

Source for the data for the Employment, Housing, Personal Income and NJ Stock Performance Scores: Bloomberg

RANJWI Authors

Christopher J. Cordaro


Andy Kapyrin

Partner and Co-Chief Investment Officer
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