Price of Gas

When filling up your car, have you ever wondered what portion of the price of gas is comprised of crude oil?

According to the U.S. Department of Energy, about 67% of the price of a gallon of gas is comprised of crude only.  The rest of the cost comes from refining, taxes, distribution and marketing. 

From the Low

Yesterday, March 9, 2011, was the two year anniversary of the current bull market for the S&P 500 stock index.  From its bear market low on March 9, 2009, the S&P 500 has gained + 95.3% through the close of trading last Friday, March 4.  This return calculation is based upon the price change of the raw index and does not include any reinvestment of dividends.   

The + 95.3% return for the S&P 500 is its best two year gain following a bear market low for all bull markets since 1949.  No other two year result has produced a gain that exceeded + 68%.

Source: BTN Research.  The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market. 

Binge Spending

Typically a “binge” of any sort is considered unhealthy for the individual in question and those around them.  The Boston Globe published today a commentary written by Senator Scott Brown of Massachusetts that refers to Washington’s “binge spending habits” (to see the full article, visit http://tinyurl.com/4ggc9n4). 

Not only has federal, state and local spending been (for some time and continues to be) at a level that can easily qualify as “binge spending,” but it has also become a habit.  One could argue this is no more than a “bad habit” that we can take some time to “try to work on” or that it is a self-destructive addiction that requires immediate intervention.  It seems the majority of individuals seeking an honest evaluation of our fiscal health recognize that the latter of these two interpretations is, in fact the truth.