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Third Quarter 2017: 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 Third Quarter of 2017 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 surpassed 4.1 million employed workers earlier this year, an all-time high. NJ has added jobs at a pace of about 1.1% per year, faster than at any time since 2002.

The weakest link in NJ wealth creation is income growth. Adjusted for inflation, incomes for NJ residents have grown at a 1.5% rate for the past five years, a far cry from peaks hit in the late 1990s, when inflation adjusted income grew at rates in excess of 4% per year.

Q3 2017 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

Christopher J. Cordaro

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

Andy Kapyrin

CFA
Partner and Director of Research

Trends to Watch:

  • Employment in NJ has picked up considerably and stands at an all time high. Though unemployment is low at a 4.9% rate, NJ continues to lag on this metric versus the country at large. The unemployment rate for all states is 4.1%.
  • Home prices in NJ have found support and begun to grow. The past twelve months saw home prices rise by 2.8%, still a far cry from the national average of 6.4% for the same period.
  • Stocks of companies headquartered in NJ have delivered. The past five years show annualized returns of 13% for these companies, a boon to employees who receive stock based compensation.
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