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| Shoreline Wealth & Investment Management |
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Newsletter
April 2006 |
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The Stock & Bond Markets -
It was a great 1st quarter for stocks with the S&P 500 up about 5% and the NASDAQ up over 6%. For bonds, however, the rising rates took their toll and 10-year Treasuries are now over 5% for the first time in 4 years. An increasing interest rate market has lots of negative consequences including, but not limited to, higher borrowing costs reducing earnings of companies and the ability of consumers to spend (see below). Add to this the cost of fuel, expected to be over $3/gallon this summer, rising commodity prices (gold for example) and an increasingly nuclear world with political instability and there are the components to reverse a stock market rally quickly. Our advice is to maintain a balanced and diversified portfolio with a variety of asset classes.
CELEBRATING 26 YEARS
Since 1980, I have been providing financial advice to investors and I'm proud to say that our service and performance (see "Bottom Line" section on the right) continue to be superior to the market and our peers. Thanks for your support.
Real Estate Bubble? -
Home borrowers could see rising mortgage rates tied to U.S. Treasuries increasing their rates 3-4% in the next 2 years according to J.P. Morgan Private Bank. The result would be an increase of about $1,000/month in payments on a loan of $400,000. Those who could afford home ownership at today's rates may not be able to do so at higher rates. Should that scenario unfold, many will be forced to sell which, as you learned in basic economics, increases supply while reducing demand and prices. Fixed rates for 30-year mortgages have increase over 12% in the past year from 5.71% to 6.43%. Those who can afford to lock in a rate would be well advised to do so while they can.
| Selecting an Advisor |
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 Warren Buffet, the most successful investor of the 20th century learned his craft from Benjamin Graham, author of several books including the legendary "Intelligent Investor." This has been recently updated by Jason Zweig who includes 16 key questions to ask your advisor and 11 an advisor might ask...
Read on... »
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| Retirement Investing |
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 Investing for retirement is a science of principles. Once understood, these principles can be applied, implemented and monitored regularly to enhance ...
Full Story »
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| Family Limited Partnerships: Disinheriting Uncle Sam |
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 Creating or updating a will and establishing a living trust will likely reduce probate time and costs after death. One way business owners can protect assets while alive is the establishment of a family limited partnership.
Learn More »
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| Looking for a Speaker for Your Event? |
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 Shoreline Wealth & Investment Management has given presentations to Fortune 500 companies as well as many local groups and organizations. If you are looking for a professional presentation on topics ranging from investments to estate taxes to business or tax law, please contact us
Click here for more details »
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| The Bottom Line |
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| This is where we provide the performance of our conservative, moderate and aggressive portfolios and compare these to the S&P 500 and NASDAQ Indexes. While they are an important consideration, performance is only a portion of the evaluation investors should consider when evaluating investment management. Other considerations include the risk taken to generate the returns, the quality of the service, the reasonableness of the fees and, more important now than ever, the integrity of the investment manager.
Find out more.... |
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email: cbloom@cfiemail.com
voice: 805.886.3624
web: http://www.swimllc.com/
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Shoreline Wealth & Investment Management · 3905 State Street Suite 7173 · Santa Barbara · CA · 93105 |
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