News Brief from AXA Equitable: Highlights from recent notable market news reports
December 23, 2011

Economists expect U.S. GDP will grow a modest 2% in 2012, only slightly higher than the 1.7% rate expected for 2011, citing issues related to Europe, housing, jobs, and government spending cuts (“Risks Cloud Outlook for Economy in 2012,” by Conor Dougherty, Dec. 23, 2011, The Wall Street Journal).

The Journal’s survey of economists found that most respondents expect a mild Europe recession to hurt U.S. exports, persistent foreclosures to depress home values, job growth to be too weak, and government spending cuts – and related political wrangling – to further drag down growth.

“We know the global economy is going to slow,” Nariman Behravesh of IHS Global Insight told The Journal. “The question is by how much.”

Mohamed El-Erian of Pimco paints an even gloomier picture (“Pimco’s El-Erian Sees Risk Europe May Spark Lehman-Like Crisis,” by Rich Miller, Dec. 20, 2011, Bloomberg).

El-Erian, head of the world’s biggest bond fund, told Bloomberg the euro zone has a 1 in 3 chance of breaking apart and sparking a 2008-style financial meltdown. “It would be the equivalent of a sudden stop” in which financial markets seized up, El-Erian said, adding that the more likely scenario is that the euro currency union slims down.

El-Erian said he thinks nine of the current 17 countries would remain in the union – Austria, Belgium, Finland, France, Germany, Italy, Luxembourg, the Netherlands and Spain.

IMPORTANT — AXA Equitable, AXA Advisors, LLC (member SIPC) and their affiliates do not provide tax/legal advice, or investment or market research. The quotes provided in this News Brief have been excerpted from media reports for general informational purposes only and do not represent the opinions of AXA Equitable, AXA Advisors or their affiliates, associates or employees. AXA Equitable and its affiliates make no representation as to the accuracy or completeness of any statements, statistics, data, opinions, forecasts, or predictions provided herein, nor will this information necessarily be updated or supplemented at any time. Any reference to market or index performance is for informational purposes only. It is not possible to invest directly in an index. This material is not intended, and should not be relied upon, as investment or financial advice and does not constitute an offer or solicitation of any kind.

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News Brief from AXA Equitable: Highlights from recent notable market news reports
December 16, 2011

Uncertainty over how the eurozone financial crisis will play out is dominating investment decisions and overshadowing fundamentals driving earnings (“BlueCrest’s Platt Says Europe Banks Insolvent as Bass Sees Run,” by Jesse Westbrook and Saijel Kishan, Dec. 15, 2011, Bloomberg).

Michael Platt of BlueCrest Capital Management told Bloomberg his hedge fund has avoided buying assets from European banks trying to deleverage, citing concerns about liquidity risks like those that quickly surfaced in the 2008 financial crisis. “I would not touch them with a barge pole,” he said, “The major opportunities will come post-blowout.”

Platt told Bloomberg he believes that most European lenders would be deemed insolvent if, like hedge funds, they had to mark their books to market every day. Platt said his firm is buying U.S. Treasurys and short-term German debt.

Concerns about the eurozone – and related rating agency responses – have caused a sustained period of market volatility that many investors say they have never encountered before and are struggling as a result (“Wall Street Traders Confounded as Volatility Extends Record Run,” by Saijel Kishan and Jeff Kearns, Dec. 15, 2011, Bloomberg).

“Markets seem to be driven more by the latest news out of Europe than by a company’s earnings prospects,” Duke Buchan III wrote in a recent investor letter, according to Bloomberg. “We have not weathered the ensuing volatility well,” he wrote in connection with his decision to close his firm, Hunter Global Investors LP. “It has not been our kind of market: macro-driven and highly correlated, with little regard to individual company fundamentals.”

Against this backdrop, Treasurys have been generating returns north of 8% as investors seek a safe haven, causing Michael Shaoul of brokerage firm Oscar Gruss to worry what would happen to these bond holders if Europe suddenly became less worrisome (“U.S. Treasury Buyers Flip the Script,” by Matt Phillips, Dec. 14, 2011, The Wall Street Journal). “You can lose a surprising amount of money” if interest rates rose just one or two percentage points, he told The Journal.

Kenneth Volpert of Vanguard Group, however, told The Journal, “We don’t think there’s a lot of risk to rates rising here, and we think that the uncertainty around Europe could potentially cause them to go a little bit lower.”

IMPORTANT — AXA Equitable, AXA Advisors, LLC (member SIPC) and their affiliates do not provide tax/legal advice, or investment or market research. The quotes provided in this News Brief have been excerpted from media reports for general informational purposes only and do not represent the opinions of AXA Equitable, AXA Advisors or their affiliates, associates or employees. AXA Equitable and its affiliates make no representation as to the accuracy or completeness of any statements, statistics, data, opinions, forecasts, or predictions provided herein, nor will this information necessarily be updated or supplemented at any time. Any reference to market or index performance is for informational purposes only. It is not possible to invest directly in an index. This material is not intended, and should not be relied upon, as investment or financial advice and does not constitute an offer or solicitation of any kind.

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News Brief from AXA Equitable: Highlights from recent notable market news reports
December 9, 2011

Movements up and down in U.S. stocks have been more in sync with moves in the euro during 2011 than at any other time over the previous 11 years, according to Bloomberg data (“DJIA 14,000 Depends on U.S. Saying We’re All in This With Europe,” by Whitney Kisling, Nikolaj Gammeltoft and Inyoung Hwang, Dec. 7, 2011, Bloomberg).

So far this year, the Dow Jones Industrial Average and the euro have moved in the same direction 72 percent of the time, compared with 49 percent for the 11 previous years, according to Bloomberg.

“It’s incredibly frustrating because in the U.S., we have a bunch of highly profitable businesses, an OK economy, companies sitting on a bunch of cash and earning as much as they ever have,” Kevin Rendino of BlackRock Inc. told Bloomberg. “And everyone is sitting on their hands because they’re waiting to see what happens in Europe.”

An unrelated Bloomberg survey of 1,097 investors, analysts and traders seems to confirm Rendino’s optimistic view of the U.S. (“American Economy Rebounding as Investor Favorite in Global Poll,” by Rich Miller, Dec. 7, 2011, Bloomberg). The poll found that among international investors, the U.S. received its highest rating in over two years.

The poll found 41 percent of those surveyed agreeing that the U.S. will be among the best performing markets in 2012, almost twice the number for either Brazil or China, according to the quarterly Bloomberg Global Poll conducted Dec. 5-6.

Even Barton Biggs of hedge fund Traxis said he had raised his long position on equities back to about 60 percent after saying in November he had cut it back to less than 40 percent (“Biggs Lifts Stock Bets, Saying ‘It’s Hard to Get Really Bearish,’” by Nick Baker and Tom Keene, Dec. 2, 2011, Bloomberg).

“Except for Europe, the rest of the world economy is doing pretty well,” Biggs told Bloomberg. “There’s too much bearishness, and equities – particularly U.S. equities and emerging-market equities – are very cheap relative to fixed income, Treasury bonds, high yield, other financial assets.”

IMPORTANT — AXA Equitable, AXA Advisors, LLC (member SIPC) and their affiliates do not provide tax/legal advice, or investment or market research. The quotes provided in this News Brief have been excerpted from media reports for general informational purposes only and do not represent the opinions of AXA Equitable, AXA Advisors or their affiliates, associates or employees. AXA Equitable and its affiliates make no representation as to the accuracy or completeness of any statements, statistics, data, opinions, forecasts, or predictions provided herein, nor will this information necessarily be updated or supplemented at any time. Any reference to market or index performance is for informational purposes only. It is not possible to invest directly in an index. This material is not intended, and should not be relied upon, as investment or financial advice and does not constitute an offer or solicitation of any kind.

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The “800lb gorilla in the room,” AXA Equitable’s longtime spokes-animal, has been talking about the importance of retirement planning for years. Well, he’s followed his own guidance and is now ready to retire. The company recently announced the retirement of the 800lb Gorilla, star of its advertising campaign to promote retirement preparedness.

But rather than just have him fade away, AXA Equitable is celebrating his retirement with a social media campaign that invites consumers to help the primate choose his retirement destination.

The program is featured on the AXA Equitable Facebook page ( www.facebook.com/AXAEquitable ) and on Twitter (@AXA_Equitable and @AXA_Gorilla). Followers are invited to choose which of four places he should retire to and enter a sweepstakes for a chance to win a trip to the destination that receives the most votes. Sweepstakes entrants are also be eligible for a chance to win a Kindle Fire.

Stacy Braun, senior vice president of Marketing at AXA Equitable, notes that “the 800lb gorilla in the room worked very hard and deserves to retire in style. Fortunately the gorilla took his own guidance and is well prepared for his retirement—now he just needs help choosing the right destination!”

You can help. To vote on where you think the gorilla should retire and enter the sweepstakes, go to www.destinationretirement.promojam.com.

The 800lb gorilla’s retirement bucks a trend among older workers (55 and above) to stay in the work force. Since 1993, the overall 55+ labor-force participation rate has steadily grown, reaching 40.2 percent in 2010(1).

When it comes to evaluating their progress in planning for retirement, the Employee Benefits Resource Institute (EBRI) also found that most workers feel that they are behind schedule. Seventy percent of workers surveyed for EBRI’s 2011 Retirement Confidence Survey said they are not where they need to be (2).

How about you? Are you where you need to be? Learn more about retirement preparedness at http://www.axa-equitable.com/retirement/overview.html

*AXA Equitable’s Destination Retirement Sweepstakes:
NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN THIS SWEEPSTAKES. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. To enter and be eligible to win, you must, be a legal resident of the continental forty-eight (48) United States (including the District of Columbia) twenty-one (21) years or older at the time of entry. Void in Alaska, Hawaii, Guam, Puerto Rico, the U.S. Virgin Islands, and other U.S. territories and possessions and where prohibited by law. Grand Prize: a three (3) day/two (2) night trip to the AXA Gorilla retirement destination determined by entry votes, consisting of round-trip coach air transportation for two from the major U.S. gateway airport nearest to the winner’s residence in the U.S., standard double-occupancy hotel accommodations (one (1) room) (ARV: $4,000.00). Four First Prizes (Kindle Fire (Full Color 7″ Multi-touch Display, Wi-Fi)) (ARV: $200.00) will be awarded following the end of each week of the sweepstakes period. Odds of winning a prize depend on the number of eligible entries received. Entry period begins at 12:00:00 AM Eastern Time (“ET”) on 11/15/11 through 11:59:59 PM ET on 12/15/11. Winner will be notified by email. To enter the Sweepstakes, follow the instructions on the Entry Website to: (1) “Like” AXA Equitable on Facebook, or follow AXA Equitable on Twitter; (2) cast your vote on where the AXA Gorilla should go for retirement; (3) share a post about the Sweepstakes on Facebook or tweet a pre-written message on Twitter; and (4) provide an email address at which you can be contacted if you are selected as a winner. Limit one Grand Prize entry and one First Prize entry per person. AXA Equitable and Promojam employees and affiliates and their families are not eligible. Major restrictions, including travel restrictions, may apply to the use, availability, or receipt of this prize. Travel and hotel arrangements determined by AXA Equitable in its sole discretion and must be made through AXA Equitable’s agent, on a carrier of AXA Equitable’s choice. Trip must be taken on dates and times designated by AXA Equitable or prize will be forfeited in its entirety and may be awarded to an alternate winner. AXA Equitable reserves right to change dates. Winner and guest must travel together on the same itinerary. For complete rules (the “Rules and Disclaimers”), including detailed entry instructions, go to Sweepstakes Rules. Entry constitutes your full and unconditional agreement to the Rules and Disclaimers. Subject to all applicable federal, state, and local laws and regulations. Federal law requires the fair market value of each prize to be reported as income to the IRS using Form 1099-MISC.Void where prohibited by law. Neither Twitter, Facebook, Amazon nor any affiliated entity is a sponsor of The AXA Equitable Destination Retirement Sweepstakes. AXA Equitable is not affiliated with Twitter, Facebook, Amazon or any affiliated entity. Twitter® is a registered trademark of Twitter, Inc. Facebook® is a registered trademark of Facebook, Inc. Kindle® is a registered trademark of Amazon Technologies, Inc.

Sponsored by: AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, NY 10104.

Sources:
1: EBRI.org, http://www.ebri.org/pdf/FFE.197.03May11.RCS-OnTrack.pdf
2: EBRI.org, http://www.ebri.org/pdf/FFE.205.19July11.LateRet.pdf

GE-66388 (12/11)

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News Brief from AXA Equitable: Highlights from recent notable market news reports
December 2, 2011

December often brings a “Santa Claus Rally” – a year-end surge in equities that spills into the new year – but fears abound this time will be different because of the European debt crisis (“No Year-End Stock Surge in Sight,” by Brendan Conway and Steven Russolillo, Nov. 26, 2011, The Wall Street Journal).

The question is whether Europe can derail a U.S. recovery. “Seasonally, the market does have a tailwind, but whether it’s going to ride that wind depends on whether Europe continues to deteriorate,” Bruce Bittles of Robert W. Baird & Co. told The Journal.

UBS economist Maury Harris has a somewhat optimistic view based on his upbeat outlook for U.S. housing prices (“UBS’s Harris as No. 1 Forecaster Says Housing Drives Recovery,” by Timothy R. Homan, Dec. 1, 2011, Bloomberg). “We think that house prices have stabilized,” Harris told Bloomberg, which is important considering how housing weakness prolonged the 2008-2009 meltdown and recession.

Still, most economists are loath to let the facts get in the way of a gloomy story (“Economists in Majority Don’t Let Improving Data Undermine Gloom,” by David J. Lynch, Dec. 1, 2011, Bloomberg). Daniel Tarullo of the Federal Reserve Board of Governors sees the economy as “slogging through the mud,” according to Bloomberg, despite jobs growth and third-quarter U.S. economic growth exceeding expectations.

Chris Rupkey of Bank of Tokyo-Mitsubishi UFJ Ltd is not so sure. “It looks like recovery to me,” he told Bloomberg, conceding his is the minority view.

The question is whether the recent lift in stocks amounts to climbing a wall of worry regardless of uncertainties (“Four Hundred Dow Points Not What They Used to Be Amid Swings,” by Whitney Kisling and Inyoung Hwang, Nov. 30, 2011, Bloomberg).

“In terms of natural human behavior, markets become more volatile when there’s a higher level of uncertainty as to the economic outlook worldwide,” Richard Skaggs of Loomis Sayles & Co. told Bloomberg, citing questions about economic growth in China as well as in Europe and the U.S.

IMPORTANT – AXA Equitable, AXA Advisors, LLC (member SIPC) and their affiliates do not provide tax/legal advice, or investment or market research. The quotes provided in this News Brief have been excerpted from media reports for general informational purposes only and do not represent the opinions of AXA Equitable, AXA Advisors or their affiliates, associates or employees. AXA Equitable and its affiliates make no representation as to the accuracy or completeness of any statements, statistics, data, opinions, forecasts, or predictions provided herein, nor will this information necessarily be updated or supplemented at any time. Any reference to market or index performance is for informational purposes only. It is not possible to invest directly in an index. This material is not intended, and should not be relied upon, as investment or financial advice and does not constitute an offer or solicitation of any kind.

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