1st Quarter Negative, 3rd Year Running

Hopefully this year will redeem itself as did 2003 and 2004….Many of the same issues continue to cloud the economic horizon. Oil is sky-high but, our consumption grows. Our personal, federal and international deficits continue to mount, but our overspending is keeping our economy and the world economies afloat. Interest rates continue to rise, but inflation and the weak dollar will probably require more of the same.

Waiting for the good news? OK then. Our domestic economy is healthy and corporate profits are strong. Real estate values continue buoy homeowners’ spirits, while Iraq and terrorism fade into the inside pages.

Tom Guyett is now a full partner in Cantlon Financial Planning. Tom and I visited central France in February and inspected seven interesting properties. Although they seem to be great values, the difficulty of getting to them has caused us to quell our enthusiasm for now.

We have higher levels of cash than normal and are happy for it. Some buying opportunities are beginning to emerge, and that is always the good news when share values drop.

Sincerely,

Michael F. Cantlon