9/27/2004

Rates Up. Bonds Up. What's Up?

Hello:

The Fed hiked rates 1/4% to a Fed Funds rate of 1 3/4%, thus edging toward a "neutral" stance vs. an "accommodative" stance. Why then, did bonds post a slight rally last week? One theory is that investors benefiting from the record high oil prices are using their profits to buy US Treasury bonds. Next week, we will be hearing the third quarter earnings reports.

Many donors start their year-end tax planning in October. Now is a good time to gently remind donors of the possible tax benefits of charitable donations.

Terri G. Millson, CIMC President

Ray Dicius, GEPC LPL Branch Manager