Wednesday, October 14, 2009

Market Commentary March 19,2009

MARCH 19, 2009

Unexpected news from the latest meeting of the Federal Reserve drove the stock market higher on Wednesday,
pushing the rebound in the Dow Jones Industrials and the S&P 500 indexes up close to 15% from their 12-year
lows only a week or so before. The volume of trading, heaviest for the year, contributed new hope to some
investors that the rally was a sign that the bottom of this market downturn had been established. They also point to
other economic indicators over the past week that at least things were becoming “less bad”; the needed signals
before hope for recovery can begin. Some data suggest retail sales, home building and manufacturing were
declining more slowly. Because the stock market can be an early indicator of the economy’s direction, those
waiting to see jumped at the chance for some kind of positive news.

The recent Fed announcements were initially seen as further help for those areas that remain the keys to getting
things straightened out --- the credit system and housing. Reaffirming their support for the many independent
Treasury programs, the Fed’s actions to push more money into the system are primarily meant to drive interest rates
lower for all parts of the economy. By buying Treasury bonds from the market, the Fed reduces the attractiveness of
the bonds returns, making investing and lending to other riskier businesses and individuals more attractive for
banks. In essence, it will help to free up the still clogged lending machinery. The housing market should be a
particular beneficiary as mortgage rates are tied most closely to the 10-year Treasury rates. It could be an important
help if first day results are an indication. On the Fed news the Treasury bond yield dropped to approximately 2.5%
from 3.0%, while the 30-year fixed mortgage rates fell to 4.75% from over 5.0%. 1

The Fed’s bold action, although discussed by analysts as a possibility for months, was seen more negatively by
some; as a need for more urgent action to turn the economy. Gold rose and the dollar fell. If the economy remains
weaker than expected, the market’s rebound could be temporary. However, for many investors, while it may take
longer, the action is further encouragement that the Treasury and the Federal Reserve continue to support each
other in solving the basic problems. Market movements will likely continue to be tied to developments in
Washington and could remain quite volatile in the short-term.
1
Wall Street Journal, 3/19/09
Prepared by: Martin J. Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Director of Investment Research, Research Department, ING Advisors
Network, and should not be construed as investment advice. All information is believed to be from reliable
sources; however, we make no representation as to its completeness or accuracy. All economic and performance
information is historical and not indicative of future results. Investors cannot invest directly in indices. Please
consult your financial advisor for more information.
While diversification may help reduce volatility and risk, it does not guarantee future performance.
ING Financial Partners, Inc, its affiliates and subsidiaries and/or their officers and employees may from time to
time acquire, hold or sell a position in the securities mentioned herein.


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www.corbanfs.com

Tuesday, October 6, 2009

Travel Through...

Despite the recent swell of intense summer heat, we are steadily approaching autumn, accompanied by the greatly anticipated holiday season.

Crimson apples enrobed in chewy caramel. Wet stockings set to dry beside a blazing fire. Foggy, grey days and golden leaves crackling underfoot—these are the images that, for me, are evoked by the holidays. For others however, this time of year may also herald emotions of acute anxiety. There are those who luxuriate in staying put to visit family and check off to-do lists—but there are also those who travel a great distance to “go home for the holidays,” or simply ache to “get away from it all,” as far away as possible.

For these folks, the traditional travel spike during Thanksgiving and Christmas may prove to be a mightier roadblock than anticipated, as questions and uncertainties abound.

“Should I book tickets now, or wait for last-minute deals?” “Which airline will be most lenient about flight-change fees? “What’s the best day to fly out for Thanksgiving/Christmas?” And my personal favorite: “50 bucks for an extra carry-on luggage?!”

The best way to combat holiday-induced stress is to, first and foremost, begin EARLY when searching for cheap ticket prices. Remember to compare with different airlines, make quick decisions when regarding sales, and look for alternate travel dates if possible (USAToday). Also, don’t forget to check for lower prices even after you’ve booked your ticket. Oftentimes, the price of a flight may drop after a few days, and it’s possible to get the difference refunded—a commodity offered by Alaska, JetBlue, and Southwest.

The good news? Airfare has decreased considerably from last year. According to MarketWatch, $327 is the national median for a roundtrip ticket during Thanksgiving; this is down 20% from 2008, said Bing Travel.

Personally, I’m finding it enough hassle to make the 2-hour drive down South to San Diego—a trip I’ve been dying to make for the past 2 months.

To be honest, I am quite satisfied with flying out just once—in the middle of December—and staying in sunny Southern California for the remainder of the year. I’ve never had a high tolerance for frigid weather, anyway. Snowboarding on artificial snow in 65 degree weather, here I come!

If you’re not one for staying at home much, however, I leave you with the “Top 5 Off-Peak Destinations for Fall 2009” (USAToday). Enjoy!
By Tiffany Sun

Twenty...

When I think of the number “20,” these are some of the most striking images that come to mind: crisp 20-dollar bills, 20/20 (perfect) vision, Matchbox Twenty—and there’s more, but the list goes on. Recently however, a new “20” has been brought to my attention.

The “G-20,” formally known as the Group of Twenty Finance Ministers and Central Bank Governor is an association of finance ministers and bank governors of 20 countries. Although the title itself is quite a mouthful, their primary objective is simply to better the global economy/financial system.

According to The Economic Times, these officials pledged on Saturday (September 5) to bolster the global economy by sustaining stimulus programs. World markets had feared that countries would withdraw their programs after budding indications of economic recovery, but the G-20 promptly calmed those fears.

Due to their efforts, we watched European and Asian stocks rise an average of 1 percent, said The Economic Times—which signifies optimism on the financial horizon, as we endure “the worst of the most severe financial crisis since the Great Depression of the 1930s” (CNN.com),

CNN Money verifies this bit of heartening news. Stocks have been progressively climbing up for 6 ½ months, they said on Friday, September 18; “Since bottoming at a 12-year low March 9, the S&P 500 has gained 58% and the Dow has gained 50%.”

Now hold on just a minute. The Dow? What is that—some sort of religion? I could see how that might work. It’s not hard to imagine a Dow temple, resting on some distant hill, acquiring a 50% increase of believers.

In reality, the Dow (Dow Jones Industrial Average) is a well-known stock market index that evaluates America’s industrial economy. It, along with the NASDAQ Composite and the S&P 500 Index, is one of the most scrutinized indices tracing stock proceedings.

When I worked as an intern in Washington, D.C., I was placed alongside our Virginia County reporter. He was very helpful, albeit slightly intimidating, and frequently entertained our corner the newsroom with droll remarks—and every morning, without fail, he would comment on how much the Dow had dropped.

But it seems that those days will soon be over. Federal Reserve Chairman Ben Bernanke gave us another snippet of good news on Tuesday. “The worst recession since the 1930s is probably over,” he said. However, he made sure to remind his audience “pain—especially for the nearly 15 million unemployed Americans—will persist” (USA Today).
By Tiffany Sun

Birthday party 529 plan funding

Parents let's get real about life does your child really need more toys. How about encouraging your friends and family to fund your education plan. $10-$20 goes a long way especially when 20 to 30 people fund it. Most of the times kids will want 30 toys but sometimes the smart thing to do might be funding your kids education fund. Providing them with two to three toys might be the answer. We have advised our clients to do this and it has been a pretty successful way to fund the child's education. Give a gift that will last a lifetime!