02/05/2007

Next Vacation, We May Stay in a Hotel

Hello:

Two interesting statistics were released recently. The first, according to Barron's Magazine, indicated that 2005 and 2006 were back to back years of negative savings, the first time since the Great Depression years of 1932 and 1933. The second, according to the Wall Street Journal, the amount of vacant homes for sale are the highest in four decades.

We interpret these statistics to indicate a high probability that people are in the process of selling their vacant vacation properties in order to move, possibly, money back from the seemingly plateaued real estate market into their college savings and retirement savings account. This may help explain the surprising strength we have experienced these past few months in the stock market.

So, next vacation, we may see more travelers staying in hotels.

Is it time for the annual review of your organization's endowment? Please feel free to contract us to write a third party report.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager