02/21/2006 As featured in the Barron's Market Watch section February 27, 2006 issue.

Alternative Fuel

Hello:

So far this year, the markets have been surprised by higher than expected retail sales and by higher than expected housing starts. Also, the markets have been surprised by dropping oil prices and dropping gold prices. Benjamin Bernanke, the new chairman of the FOMC, assures Congress that he is still comfortable with the Goldilocks GDP growth rate of 3.5%. So the economy appears steady.

Interestingly, Oil prices have been dropping ever since the time President Bush has begun stumping for the use of alternative fuels, including switchgrass and woodchips. Brazil has already proven that ethanol production can reduce crude oil consumption. These and other factors appear to have taken some wind out of OPEC's sails, with the president of OPEC saying, "We do believe that energy issues cannot be handled in a unilateral way; we all have to work together towards global energy security." Now that weaker than anticipated demand in the U.S. is causing prices to slump, OPEC wants to be a team player?

With increased longevity, the typical American family may start spanning multiple generations and include great and great-great grandchildren in the future.

Do you have a family business? It is more difficult for a closely held business to survive without a succession plan. Consider talking to your estate planning attorney about whether a Family Limited Partnership (FLP) would help your family business thrive in the future.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager