Economic News Sept 28, 09

Don't listen!!

The market has been responding well the last few weeks overall...however, the evidence bears these continuous wide swings. Expect to continue to see them throughout the remainder of the year. We will continue to use caution with a dose of optimism when indicators call for optimism.

"Consistency will always Outperform Occasional Brilliance!"

Economic News

* Existing homes sales dropped 2.7%

* Durable good orders dropped 2.4%

* Expect new GDP report Sept 30

* Stocks Registered new 2009 highs

* Technology Sector continues to lead the S&P 500 for the year 44.3%

October has historically been very volatile, without a recession. We will continue to be very vigilent and optimistically cautious in our efforts managing your assets: recognizing every opportunity to manage risk as well as looking for opportunities for growth.

Recession's Over!

Economic News

* Retail Sales jumped 2.7% in August

* Industrial Production rose 0.8%

* Housing starts rose 1.5%

* Federal Reserve start their 2 day meeting; fully expect to keep historical low rates at their current level to help spur lending and economic recovery

* Federal Chairman Ben Bernanke is scheduled to make rate announcement at 2:15 on Wednesday, September 23rd

* Bernanke also announced recession is "likely over", the market has responded in kind by this statement

September and October have historically been very volatile. We will continue to be be very vigilent and optimistically cautious in our efforts managing your assets: recognizing every opportunity to manage risk as well as looking for opportunities for growth.

Things Come in 3's

Economic News

* Consumer Sentiment rose once again.

* From March 9 to September 9, the S&P 500 grew 53%. The S&P 500 has been "up" 17 weeks and "down" 8.

* Goldman Sachs reports they have tempered their view slightly on labor, now expecting the unemployment rate to reach 10¼% in 2010, down from a previous forecast of 10½%.

* Monetary tightening seems highly unlikely in a world of vast labor and manufacturing slack, contained inflation, and reduced consumption.

* Goldman also states in a recent report; Better News Drives Up Near-term GDP: Improved news for homebuilding, home prices, manufacturing, and employment contribute to an upgrade in our second half 2009 GDP forecast from 1.0% to 3.0% annualized. This change is particularly warranted due to the economic jolt coming from the positive turn in the inventory cycle and fiscal stimulus.

Mis Behavin'

We've all heard the saying "things happen in 3's". This week is NO exception: Senator Joe Wilson starts the week of disrespectful, vulgar, rude and down right stupid behavior:

Senator Joe Wilson: yelling at the President during his speech! Regardless if he is correct, I know your mamma taught you there is "a time and a place".

Serena Williams: girlfriend your mamma/daddy needs to just "wash your mouth out with soap".

Kanye West : Wins first prize for being the rudest, most stupid man on the planet! Your Mamma is going to come back and "bust your ....." well you know!

Thank goodness bad only comes in 3's!

Sources: JP Morgan, Standard and Poors, Goldman Sachs, US Dept of Labor, Victoria's Mamma for teaching her "good manners" and "if you cant say anything nice, don't "say" anything at all".