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Fourth Quarter 2019: 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 2019 is 52. 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 workers, a new all time record. NJ has added jobs in recent years at 1.15% per year – that’s the fastest pace since 2002 and has helped to bring the state unemployment rate down to 3.2%, below the national average. To keep this trend strong the Garden State will need to attract businesses to put down roots in our state.

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. New Jersey’s largest company by market cap is Johnson and Johnson, which has faced a tough twelve months as a result of groups of lawsuits from consumers and local governments on two fronts – one in response to baby powder which may have contained asbestos and the other tied to J&J’s role in the nation’s opioid crisis. In spite of the troubles at J&J, NJ stocks overall are hitting new highs along with the broader stock market, but volatility at J&J has kept those gains smaller than the nation as a whole.

 

 

 

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

Christopher J. Cordaro

CFP®, CFA, MBA
Partner, Chief Investment Officer and Wealth Advisor
Andy Kapyrin

Andy Kapyrin

CFA
Partner and Co-Head of Investments
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