04/16/2007

No More Drive-Thru

Hello:

The government reported a flurry of information late last week. Luckily, it appears today that market likes what it sees.

The Department of Labor reported that the economy added 180,000 jobs in March and that the unemployment rate retested its five year low of 4.4%. However, the Bureau of Labor Statistics announced that the February Producer Price Index (PPI) increased by 1.3%. Over 15% inflation annualized? That is not sustainable in our humble opinion, but it sure is an eye opener!

Luckily, if one chooses not to eat, not to drive, and not to regulate the temperature of their living room, then we can subtract out food and energy and see that the core PPI is only 0.4%, which, conceivably, could drop the annualized inflation rate to below 5%.

Therefore, it seems that the somewhat humorous answer to inflation is to swear off Drive-Thru meals for now, thereby saving on both food and energy at the same time. Who knows? Maybe that would reduce the amount of carbon emissions we are generating as well!

Are you less than satisfied with your 403(b) plan at work? It could be that your employer allows a partial transfer of your retirement plan to another trustee. Please call us regarding more information on 90-24 transfers.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager