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THE JALBERT REPORT
October 2009
Dear Friend,
Welcome to "The Jalbert Report", a weekly newsletter designed to provide you tips and updates so that you can "Live Well" during your retirement years.
Please feel free to forward this FREE newsletter to any of your friends and relatives who you believe might find the information within helpful.
And if for some reason, you would no longer like to receive this newsletter, it's really easy to take your name off the list at the bottom.
Enjoy reading!
Russ
Quote of the week:
"We rate ability in men by what they finish, not by what they attempt."
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Opening Thoughts |
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Markets Heading Up Or Down?
Who Knows! |
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It looks like volatility is the likely winner...
When the year started, the markets were heading down and heading down fast. But for the past six months, things have improved and the markets have been heading up as fast as they went down.
Now let’s be clear - markets moving up are what you and I both want. What we don’t want however is markets moving up when the underlying economics do not support that upward move.
Why not? Simple. When the economics don’t support upward movement, then markets have a way of crashing back down in a hurry. And no one wants that!
Of particular concern right now is our banking system, the linchpin of our economy. It seems like everyone is acting as though everything is better now,” when the reality is something else altogether.
First we have an article from one of Wall Street’s top banking analysts saying that the credit crunch is not over yet, and companies are still having a hard time getting credit. When companies cannot get credit, it's really hard for the economy to grow. READ FULL ARTICLE>>
Next, we learn that FDIC is taking extraordinary measures to shore up its hard-hit reserves. READ FULL ARTICLE>>
And just to show that it’s not only our banking system that's still touch and go, we have this article that highlights 10 major companies that are teetering on the verge of bankruptcy. READ FULL ARTICLE>>
Now, I’m hopeful that the markets will continue their upward march. I’m just concerned to many investors are rushing in with “hope” and not enough “justification.” |
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Good News |
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Everywhere you look, you see nothing but doom and gloom in the headlines. So let’s see if we can find any good news out there...
Here’s a few bits that I found reported on Yahoo Finance: |
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- The Coca-Cola Co. topped Business Week's list
as the world's most valuable brand for the 9th
consecutive year.
- Christie's will auction a Rembrandt painting in December and expects to fetch an estimated $41 million.
- Dell will buy computer services maker Perot Systems for $3.9 billion.
- GM will add a third shift to three of its plants, restoring 2,400 jobs.
- Yahoo is launching a $100 million global marketing campaign to promote its revamped web portal and rejuvenate its battered image.
- CarMax reported quarterly profit surged to $103 million compared with $14 million a year earlier.
- General Mills reported that its quarterly profit surged 51% to $420 million.
- EMI Group said that it sold more than 2.25 million copies of The Beatles' remastered albums in the first 5 days after release on September 9.
- Duke Energy and FPL will spend $600 million to replace their combined fleet of 10,000 cars and trucks with electric-powered vehicles.
- The Tribune received bankruptcy court approval to sell the Chicago Cubs to the Ricketts family for $845 million.
- A study by Microsoft finds unused TV airwaves could generate more than $100 billion in economic value by 2025 when used for wireless Internet services.
All the headlines above represent good news in the economy. Don't you ever wonder why the media can't spend more time focusing on the good news that happens? |
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Planning Tips |
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Will Retiring Baby Boomers Push Market Values Down As They Start Taking Money Out?
Economists are citing six reasons why this
is nothing more than a myth... |
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I'm sure you've heard this one when talking to your friends:
"As baby boomers retire, they will begin taking money out of the market in order to fund their retirement income needs. This will create a large supply of "sellers" which will, in turn, push market prices down in order to find enough "buyers." Since baby boomers make up a large percentage of our country's population, this sell-off will push down stock prices for many years to come."
On the surface, this argument makes a lot of sense. However, economists don't necessarily agree with it. Here are six different reasons they cite as to why it's just not true. READ FULL ARTICLE>>
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Cautious retirees: Most retirees have historically been wary about selling assets because they might need that money if they live longer than expected.
Bequests: Not all seniors want to spend every dime they have accumulated.
Uneven wealth distribution: About one-third of U.S. financial assets are held by the wealthiest 1 percent of the population, according to the CBO. The wealthiest Americans won't need to dip into their savings to pay for their golden years.
Working longer: Baby boomers who have seen their retirement savings decline significantly over the past year may decide to delay retirement.
Similar portfolios: Most people do not currently change the asset allocation of their portfolios upon retirement, CBO says.
Foreign demand: Even if older Americans sell off their assets to finance retirement, the CBO expects an increase in foreign demand for U.S. assets primarily from investors in developing nations with emerging economies and relatively young populations.
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If you would like to talk to me about anything discussed above, please feel free to call our office at (877) 807-SAFE(7233).
Russell K. Jalbert CFP®, one of the nation's leading financial professionals, has advised successful individuals in the management and distribution of their wealth for more than 35 years. Russ has discovered many alternatives to conventional investment practices. His priority is to educate people to understand they don’t have to accept risk in order to grow their money.
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©2009 Jalbert Financial Group. All Rights Reserved |
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