Money in the bank

With few exceptions, everything I read says that investors should stay away from long term bonds.

Any rise in interest rates (they can’t go lower) will cause bond prices/values to fall.

Time Magazine says the states with the highest job growth over the next 2 years (4.7%) will be Texas and Utah.

Lowest will be WY, SD, IA, OH.

Back to our earlier 2010 discussion...

The insurance industry lost 2.5% of its jobs, but salaries in all categories were up.

Household savings continued to climb, but more slowly (now about 5%), up from their low of 1%.

GDP passed its 2008 peak, but the jobless rate remained stuck in the 9.6% range.

Harvey Dorland

Pacific Recruiting

936-597-6500 - direct

hdorland@ez2.net

Money in the bank

Reflecting a bit on 2010...

Commercial lines P&C prices continued their softening trend.

· Wonder how, with carrier combines typically running quite a bit over 100, and investment income (bonds) paying so poorly, that the cause of the softness is too much available capital?? (From whence did it come)?

Home prices on average across the country have gone down 30.5% below 4/06 peak.

If you’re not protesting your property taxes (business ones, also), please do so.

Even in my state (Texas), which has seen little price depreciation, there can almost always be found a foreclosure sale or short sale down the street that you can use as a comparable.

Bloomberg Business Week, by the way, says it will take 10+ years for home prices to return to their peak.

So... protest next year, also!

More on 2010 later.

Harvey Dorland

Pacific Recruiting

936-597-6500 - direct

hdorland@ez2.net

Money in the bank

Happy Holidays to all!

Getting an MBA at a top-rated school will cost you about $100k, but your pre-MBA compensation will, on average, increase about $35k/year once you get it.

A good article in Fortune Magazine 12/27 edition about the pitfalls of buying long-term bonds which are currently paying very low yields.

The price will drop 40% on a 30 year treasury note (now yielding 3.8%), if new yields down the road go to 7.22.

Since bottoming out in 2008, gross domestic product (GDP) has recovered 95% of the lost production but only 15% of the lost jobs.

More jobs won’t be created until consumers begin spending again, and we’re saving instead of spending.

Harvey Dorland

Pacific Recruiting

936-597-6500 - direct

hdorland@ez2.net