10/02/2006 As featured in the Barron's Market Watch section October 2, 2006 issue.

The ISM Schism

Hello:

The Institute for Supply Management (ISM) report came in below expectations today. The ISM report is one of the strongest leading indicators of the future course of the economy. This schism between expectations and results indicates that the economy might be cooling off more than "the experts" anticipated. This cooling may also help explain why the Dow Jones Industrial Average is have such a difficult time reaching a new closing high at this time.

The Pension Protection Act of 2006 (PPA) toughens the tax laws for charitable donations. Under the new law, taxpayers must, in the event of an IRA audit, be able to produce supporting documentation of their donations, in the form of a receipt from the charity, a canceled check, a credit card statement, etc.

Terri G. Millson, CIMA, CIMC President