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"The important thing is not to stop questioning." - Albert Einstein
The Markets
It was a very good week for the markets.
All
three major indices closed higher for the third week in a
row, and the Dow Jones Industrial Average closed within
50 points of 13,000—potentially a new milestone for
the index. What pushed markets higher? Investors had muted
expectations for first quarter earnings reports. These proved
ill-founded as early earnings releases reported better than
expected results. Sixteen companies in the Dow Jones Industrials
Index had reported earnings by late last week and 10 had
exceeded analysts' expectations.
While the markets have
been moving higher, the United States dollar has been moving
lower. The U.S. Dollar Index, which
measures the dollar's value against a basket of major
currencies, closed at a two-year low last week. According
to Bloomberg.com, currency traders have priced in an expected
U.S. rate cut for 2007, as well as an anticipated rate
hike for Europe. Some analysts now expect the Euro to hit
all
time highs relative to the dollar in the near future.
A weaker
dollar means that, if you're planning a trip
to Europe this summer, you should be prepared to experience
a bit of sticker shock. According to TripAdvisor.com, the
average price for a three-star hotel in London is in the
$200-$300 range. On the positive side, you may also see a
large number of European tourists visiting the United States
this summer, which could boost our economy.
Article of interest: Inflation
Update:
The
CPI and Three-Card Monte
So if you don't
eat, drive your car, or heat your home I guess you weren't
effected by inflation.
| Returns through 04/20/07 |
1-Week |
Y-T-D |
1-Year |
3-Year |
5-Year |
10-Year |
| Dow Jones Industrials |
2.8 |
4.0 |
14.2 |
7.9 |
5.0 |
6.9 |
| Nasdaq Composite |
1.4 |
4.6 |
7.8 |
8.5 |
7.5 |
7.7 |
| Standard & Poor's 500 |
2.2 |
4.7 |
13.2 |
9.9 |
6.0 |
6.9 |
Source: Yahoo! Finance, Barrons
Past performance is no guarantee of future results. Indices
are unmanaged and cannot be invested into directly. Three-,
5-, and 10-year returns are annualized. Assumes dividends
are not reinvested.
ASK YOUR SPOUSE WHAT LIFE WILL BE LIKE
AFTER RETIREMENT and you may be in for a surprise. A recent
survey asked 500 married couples, who were within ten years
of retirement, what their retirement lifestyles would be
like. According to RegisteredRep.com, a staggering 37% of
the couples disagreed about their basic retirement goals
and their primary sources for retirement income! Almost one-half
of couples interviewed had differing opinions about whether
one or both of them would continue to work during retirement.
In general, the survey found that men had a rosier outlook
than women. Husbands expected to retire earlier, and were
more optimistic about the standard of living they could expect
to enjoy after retirement.
Most couples agreed about the income sources
they would rely on during retirement, which included employer-sponsored
retirement
plans, pensions, and Social Security. Unfortunately, a majority
disagreed about which of these would be their primary source
of income during retirement. Neither husbands nor wives were
knowledgeable about the income their personal investments
and annuities would generate. Only about one-half of husbands
and one-half of wives knew when they could begin taking income
from their annuities, and less than one-fourth knew the dollar
amount that would be generated by their annuities.
Many couples, in which one or both spouses
could expect to receive income from a pension, had not shared
information
adequately. Seventy percent of husbands and wives knew the
age at which they could start taking income from their own
pension; however, just 37% of the women and 60% of the men
knew when they could expect to receive income from a spouse's
pension.
According to the survey, couples who share
household financial responsibilities are more optimistic
about their retirements,
and may be better prepared to meet unexpected problems
that could arise during retirement. If you have any questions
about your retirement or sources of retirement income,
please
call us. We will be happy to provide any information you
need.
Perform the calculation below as fast as
you can, and using only mental arithmetic (so without pen
and paper, or a calculator!).
Take 1000 and add 40.
Add 1000.
Add 30 and then add 1000.
Add 20.
Add 1000 and then add 10.
What is the result of this calculation?
Click here for the answer.
Best Regards,
P.S. Please feel free to forward
this newsletter to family, friends, or colleagues.
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