06/12/2006

What's Up with That?

Hello:

Last week, after the news that al Qaeda henchman, Abu Musab al-Zarqawi was killed as a result of a U.S. airstrike, the equity markets plummeted, with the Dow Jones Industrial leading the way at nearly 200 points down. Shouldn't the market rally on that news?

We believe there is a high probability that the institutional investors (pensions portfolios, hedge funds, etc.) are beginning to take profits in investments related to war-time, (commodities, international investments, defense manufacturers) and reposition their portfolios in expectation of reduced military involvement overseas perhaps as soon as six months to a year from now. We would love a bigger piece of the peace pie.

Improvements in medicine means that people are living longer. Longevity, combined with inflation, means that middle-class donors are likely to require retirement nest eggs of $1 million or more (or the equivalent in lifetime pension benefits) to maintain financial independence in their lifestyle during extended years of retirement.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager