Fall Could be Beautiful

Our results continue to improve quarter by quarter, but the numbers are modest. Only one quarter left to “make some hay.” Fortunately, the 4th quarter has a good historic track record.

So far, July has been the only “fun” month this year. August and September were non-events. The market indices continue to show red ink for the nine months and may record four down years in the last six as we continue to pay for the excesses of the late 1990’s.

Corporate profits have risen enough to bring prices into line with historical norms. Thus, barring additional disasters, security prices can advance with further earnings improvements. Such gains will be slowed by higher energy costs and interest rates. Our strategy continues to rely on dividends and call premiums to obtain a decent return without the aid of market advances.

On a more down to earth note, we have located and are successfully using a new credit card, which gives an amazing 5% cash back on purchases of groceries, gasoline and pharmacy up to $300 of cash back per year. Other purchases earn a 1% credit so when you reach the $300 maximum cash you should switch to another card offering a reward. You can apply online at www.citicards.com or call 800-931-9587. Free money!!

Tom and I want to remind you that we are available at any time to field questions and discuss any area remotely related to financial affairs. We are both licensed in all lines of insurance and have a working knowledge of taxes, social security, budgeting and real estate. Please call us before you make an important commitment.

Very truly yours,

Michael F. Cantlon