10/08/2007

Jobs Report is not an Odd Report

The September Payroll Report was anything but odd. It was impressive!

As background, there is a concern that if hiring falters, then mortgage payments will stall thus exacerbating the already weakened real estate market. However, on Friday, payroll increases came in at 110K -- approximately 10% above expectations! That situation, along with a potential interest rate cut at the end of this month and at the end of next month, and along with other factors, may allow the Federal Open Market Committee to engineer a relatively soft landing.

In general, we are advising our fixed income portfolio managers to talk to us regarding locking in some interest rates sooner rather than later. Naturally, we review each organization's case individually before making a final recommendation.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager