Posts
January 11, 2010
Is it just me or does the stock market seem to be hanging on? Rumors are that earnings, thanks to all our neighbors who were terminated, are going to surprise to the upside. That means a short term quick buck for those who are in the market. If you’re one of the lucky ones, it may be time to up your contribution to your favorite charity.
Fundamentally the market seems to be disregarding the continued increase in unemployed and underemployed ranks. Sooner or later that has to come home to roost. When it does the market could “adjust” about 10% or more is what I’m hearing.
That’s a lot less of a drop than what we had in 2008 and but it could still hurt and hurt badly if you haven’t fully recovered from the last decline that turned 401(k)’s in to 104(k)’s. Especially if you are older. On that note, any youngsters (50 and under) reading this should have that conversation with Mom and/or Dad. How are they doing? Are they OK? Are they worried? If they are worried, (or you are) take them to see a Financial Advisor you trust and have him(her) figure it out for them. Most will do it free. If yours won’t, contact me for a list of those who will.
So where is Congress on the reconciliation of the Health Care Reform bill? It will be interesting to see what happens with two Democratic Senators officially on the lame duck list and Senate Leadership making racially charged comments about the President (albeit before he was elected).
The dollar began to slip again after gaining some ground against the Euro for the past few weeks.
Government policy is going to hit you in the wallet starting this month. The temporary reduction in withholding of income taxes started last year to give you a bit more of your money to spend expired on 12/31/09. The tax rates weren’t changed so don’t be surprised if you have to write a check come April 15. Wait till next year when the check may be even bigger.
Speaking of income taxes, don’t be in too much of a hurry. The IRS graciously gave financial houses until the 16th of February to send out your 1099’s. That means you can’t file until you are sure you have them all or likely March 1st. For the few that might actually get a refund, it gives the government another two weeks to hold onto your money interest free.
By the way, China just became the largest car market in the world, buying more new cars last year than the USA. It is the first time in the history of automobiles that the USA wasn't number one. I wonder if that is a harbinger of things to come.
First quarter is a dark time for me emotionally. It’s cold the day light hours are still short, the grass is brown, no flowers are blooming and preparing my tax return brings me face to face with the reality of how much I contribute to the running of government. The second quarter is better, days are longer weather is warmer and summer is coming. I hope that optimism will carry over into the economy.
