Stephen H. Cypen, Esq., Editor

1. GROWTH VS. VALUE REDUX:

The age-old question, which really has no answer, is which style performs better, growth or value? Well, as measured by the Russell Indices, since calendar year 1979, value has outperformed growth 15 of the 27 years. (The Russell 1000 Growth Index started in 1979.) On a cumulative basis, over the same 27 year period, the Russell 1000 Value Index outperformed the Russell 1000 Growth Index 14.42% to 11.77%. For the three quarters ended September 30, 2006, the Russell 1000 Value Index is clobbering the Russell 1000 Growth Index, 13.9% to 2.97%. Incidentally, over the same periods, the S&P 500 Index came in at an annualized return of 13.34% -- which leads us to conclude that the S&P is not quite as “growthy” as it used to be.

2. CENSUS BUREAU DATA UNDERSCORE VALUE OF COLLEGE DEGREE:

In Release CB06-159 (October 26, 2006), the U.S. Census Bureau says that adults age 18 and older with a bachelor’s degree earned an average of $51,554 in 2004, while those with a high school diploma earned $28,645. Those without a high school diploma earned an average of $19,169. The Census Bureau also found that advanced-degree holders made an average of $78,093. The following are some other highlights:

• In 2005, 85% of all adults 25 years or older reported that they had completed at least high school. More than one-quarter of adults age 25 and older had attained at least a bachelor’s degree.
• High school graduation rates for women continued to exceed those of men, 85.4% to 84.9%. On the other hand, men had a greater proportion of the population with a bachelor’s degree or higher (28.9% to 26.5%).
• Non-Hispanic whites had the highest proportion of adults with a high school diploma or higher (90%), followed by Asians (88%), Blacks (81%) and Hispanics (59%).
• Utah, Minnesota, Montana, New Hampshire and Alaska continued to have the highest proportions of people 25 years and older with a high school diploma or higher (92%).
• The District of Columbia had the highest proportion of people 25 years and older with a bachelor’s degree or higher (47%), followed closely by Connecticut, Massachusetts, Maryland and New Jersey.

All data are from the 2005 Current Population Survey’s Annual Social and Economic Supplement.

3. HIGHLIGHTS OF WOMEN’S EARNINGS IN 2005:

In 2005, women who were full-time wage and salary workers had median weekly earnings of $585, or 81% of the $722 median for their male counterparts, according to a report from the U.S. Department of Labor, U.S. Bureau of Labor Statistics. This ratio has grown since 1979, the first year comparable earnings data were available; that year, women earned about 63% as much as men did. Here are some other findings:

• Median weekly earnings were highest for women and men age 45 to 64.
• The difference between women’s and men’s earnings was much larger among middle-age and older workers than among younger workers.
• Between 1979 and 2005, the earnings gap between women and men narrowed for most major age groups.
• Asian workers of both sexes earn more than their White, Black and Hispanic counterparts did in 2005.
• Earnings differences between women and men in 2005 were widest for Whites and for Asians.
• Growth in earnings for White women has outpaced that of their Black and Hispanic counterparts.
• At all levels of education, women have fared better than men with respect to earnings growth.
• Women working full time in management, business and financial operations occupations earned $847 per week in 2005.
• The ratio of female-to-male earnings vary by place of residence, from a high of 90.1% in California to a low of 63.1% in Wyoming.
• Just 6% of women earn $1,500 or more per week, compared with 14% of men.

Readers should note that the comparisons of earnings are on a broad level and do not control for many factors that can be significant in explaining earnings differences.

4. “WEDGIE” GETS PRINCIPAL SIX-DAY SUSPENSION:

Our friends at the Associated Press report that a high school principal received a six-day suspension and a letter of reprimand for giving one of his students a wedgie. The principal pulled a high school senior’s soccer jersey over his head and then yanked upward on the waistband of the boy’s underwear at a soccer game. Other school officials said he was joking around with the student and did it playfully. However, he was suspended for two days without pay and four days with pay before the school board decided to let him return. The principal will be required to talk with students and staff members about the incident to restore respect and authority. He said his first reaction was to resign, but he decided to “tackle this mess” head on. Talk about driving a wedge between students and teachers!

5. QUOTE OF THE WEEK:

“In times like these, it helps to recall that there have always been times like these.” Paul Harvey Good day.