06/14/2005

Inflation and the Bond Conundrum

Hello:

Mr. Greenspan recently commented that the recent rally in the bond market [which frequently protends a weakening economy] is a "conundrum" because he is raising short term interest rates order to fend off inflation due to a strengthening economy. Which is it? Strengthening or weakening? Perhaps stable?

Many will be watching the numbers being released this week, including the Producers Price Index (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday for more insight into US Domestic Economic Growth.

For those of you awaiting Ray to return from Europe to discuss Charitable Estate Plans, he will be back in the office on Wednesday.

Terri G. Millson, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager