11/06/2006

The Market Hates Uncertainty

Hello:

The US Domestic Equity Markets have been in a sell off for the past week despite positive employment reports. I attribute this to uncertainty about the results of tomorrow's elections. This may be creating a future buying opportunity. In the big picture, it appears that the economy is strong, without being overheated. It is also positive to note that we are heading into the third year of the presidential election cycle, which usually is a bullish year for the stock market.

The Pension Protection Act of 2006 (PPA) creates a new category of deductablility for qualified conservation easements with a deduction of up to 50% of adjusted gross income (formerly 30%) and up to 15 years of carry-forward (formerly 5 years). Be sure to talk with a tax advisor prior to making a decision.

Terri G. Millson, CIMA, CIMC President