Just in case you’re out of town and the news hasn’t hit- we got snow in the Midwest!
- Monday last markets ended mixed after The Ben Bernanke speech and political television appearance on 60 Minutes. Randall Forsyth at Barrons.com got his nose out of joint watching The Ben Bernanke Show & Tell and wanted to know, ‘If the Fed’s policy is to lower rates through quantitative easing why are Treasuries up to nearly 3% from 2.5%?’ And why did German Finance Minister Wolfgang Schaeuble label The Ben Bernanke policy as, ‘Clueless.’? Also, ‘many officials aboard accused the Fed of deliberately debasing the dollar as the primary means to stimulate the economy.’ (Of course, dear reader, with all our debt the Fed’s marching orders are to get a cheap dollar to compete with shhhhh China!')
- Tuesday the markets responded with vigor to the Republican’s convincing the Dems to go-along with an extension of the Bush tax cuts. The rally fizzled right about tea- time and ended with markets mixed.
- Investors are holding the biggest positions on record in the commodities markets as prices surge, according to Wednesday, December 8th WSJ. There is a January 2011 deadline which requires regulators to set limits on how many commodity futures contracts in energy and metals as a speculator it can own.
- Wednesday saw a broad but itsy-bitsy rally across all indices except metals. Improvement in gaming Argus Research stated they see significant growth potential in casinos. Banks carried the day for the Dow on Wednesday, with Citi, Bank of America and J.P. Morgan Chase all up.
Worst states for retirees? According to TopRetirements.com are: Illinois, California, New York, Rhode Island, New Jersey, Ohio, Wisconsin Massachusetts, Connecticut and Nevada. Reasons? Fiscal health, climate and taxation.
- Thursday saw mixed markets along with stock-market soothsayers starting to polish their crystal ball fortune telling globes in readiness for 2011 predictions. As always you can count on me to be right there with my insight and far sight.
- What’s wrong with emerging markets and why do folks have mixed views? David Wessel in WSJ 12-8 believes that some emerging market citizens. aka China, will start spending. Opting for the good life, spending much like their American friends. Yes, predictions by David suggest our days as pious over-savers will continue as other emerging market citizens take up our slack at the retail counters of world merchants. When that happens, 2011, he suggests we’ll see higher interest rates also more increases if emerging markets start to step up infrastructure and other investments.
- There is an old joke of a stuntman who created an act which called for him to crawl into a cardboard box and blow it, and himself, up with dynamite. The first night he did it he knocked himself into a six month coma and immediately upon awakening announced, ‘Ta-dah!’. And so –Ta-dah! Stocks ended Friday at 2-year high. All indices were up led by GE which raised its quarterly dividend by 17%. (Never forget, dear reader, the value of dividends!).
- In 2001 the Estate Tax’s top rate was 55% with an exemption of $675,000. The estate tax in 2010 was zero. The estate tax going forward in 2011 in based on $5 million and a 35% tax. Gift tax exclusion remains the same at $13,000 per person tax free with no limits.
- There was a threat that legislation would have forced the old 2001 estate tax rate and exemption on all Americans beginning in 2011.
- Finally, for the week all markets were slightly up along with consumer confidence as we move closer to the holidays.
Questions call Paul @ 877 783 7080 or write him at pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.
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