Living in retirement
Retirement Living may soon be challenged by Rising Inflation
Friday, July 16, 2010, saw the release of the consumer price index and as noted by Goldman Sachs analysts, while the index was actually down .14 percent in June and up only 1.1 percent for the past 12 months, "core inflation" was a bit stronger than the analysts had expected. Of particular note was a rental index that rose .1 percent in the past month with "lodging away from home" up 1.3 percent. This confirms what I have heard anecdotally that people are vacationing and travelling again and obviously willing to pay up for this privilege for the first time in a couple of years. A small piece of additional evidence entered my world this past weekend. When I called to cancel a reservation at the Cedar Lodge just outside Yosemite, they told me they were going to charge a $7.50 cancellation fee! This is a first for a hotel (rather a 2-3 star motel) in my experience, given they had a week's notice. The travel industry rivals bankers in their assertion of garbage fees, and apparently they now feel confident in getting away this nonsense-witness the bag charges imposed recently by most major airlines!
LeBron James’ Savvy Tax Move
More Signs of Economic Recovery
MORE EVIDENCE THAT THE ECONOMY IS COMING BACK
In an email to clients on May 25, I included a link to some graphs provided by the Value Line Statistical Service, which show that many widely followed financial indicators have been trending upward for months. Now comes evidence from so-called “below-the-radar” indicators that confirm that a recovery is underway. Bloomberg Business Week on June 15 reports that a number of oddball indicators show that the economy’s heartbeat is strengthening:
Don’t Just Do Something, Stand There!
Here is an interview that does a good job of expressing my thoughts regarding the current state of investment opportunities. In a nutshell it reminds us to take the daily financial headline, both bearish and bullish in stride.
Of Goldman, Greece and Grease
Who to blame for the mess we appear to be in? Greedy Wall Street bankers? Fatuous Europeans who expect to retire at age 55 after a lifetime of loafing? Inept oil drillers fouling America’s southern coastline? When times are tough you can count on politicians to score points by blaming everyone in sight, rarely noticing that many of our problems today are the results of legislation enacted by previous Congresses. No one seems to want to accept individual responsibility-it's always the Other Guy's fault. I'm convinced that this nation's greatest enemy are those who insist on seeing the glass as half empty, whatever their political persuasion.
THE MARKET’S DOWN 1000 POINTS- DID SOMEONE GREECE THE SKIDS??
I love my clients! Shortly after the market closed, on one of the wackiest days in memory, I shot out a reassuring e mail to my clients (reprinted below). Here is a sample of the responses that came back from some of them:
“Wow! From my perspective you wrote the following and responded in less than a minute from the time I sent my email to you! “
“Stay with it! You’re the man!!!”
“I know you are on the job, and I trust your judgment. I rode out 1987 with you.”
“Thanks for the info you have been sending today Gary. We have been trying to keep up with everything, but it is great to hear your explanations. You certainly express yourself extremely well.”
Aren’t I somethin’ !?
But really, it feels good for me to know I’m needed and respected for the work I do.
Now, for your interest, is my perspective on what is going on in the markets from the above referenced e mail sent to clients earlier today: