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| Shoreline Wealth & Investment Management |
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Newsletter
September 2004 |
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Despite more than 20 percent year-over-year earnings growth and confident words from Federal Reserve Chairman Alan Greenspan that the economy is on solid footing and that the "expansion is self-sustaining," investors fear that the economic recovery is vulnerable and hostage to a litany of headwinds including uncertainty over oil prices, Iraq, the election outcome and terrorism. Bonds have been a surprisingly strong asset class given the recent weakness in consumer confidence, jobs, the dollar and the overall economy which remains sluggish. One more thought on stocks - with dividends historically representing 40% of the gain on stocks, this is worthy of consideration - year to date, dividend paying stocks are up over 4% while non- dividend paying ones are down over 8%. For those concerned about a resurgence in inflation, a great bond consideration would be Treasury Inflation Protected Securities (TIPS) which have the inflation rate (3-5%) added to the value annually.
Real Estate Bubble Burst - Part 2? Although I've been wrong for awhile on this, there are others joining the chorus of voices who consider real estate values getting far ahead of themselves. Last week, Orange County (the number 2 real estate market in the U.S.) slumped 17% year to year with sales falling in San Diego (number 4) and Los Angeles (number 5) as well. The banking system is heavily exposed to the housing market with 60% of their assets tied up in real estate of one form or another, the highest since World War 2 - and as goes the nation's banking system, so goes the economy. Just a thought.
| 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... » |
| Private Investments vs. Publicly-Traded Investments |
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 Alternative investment vehicles such as hedge funds and private equity are often offered exclusively to high- net-worth individuals. In fact, it is the high-net-worth investor for whom this type of investment is best suited. Most alternative investments are structured as private limited partnerships open to no more than 100 accredited investors but the financial services industry has attempted to further democratize this type of investing ...
Full Story » |
| Business Transfer: Disinheriting Uncle Sam - Part 8 |
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 Federal and state estate and gift taxes (55% maximum), together with the generation-skipping transfer tax (GSTT) on transfers to persons two or more generations younger at a flat rate of 55%, combined with income taxes imposed over the years, can reduce the value of the business that a family can retain through the generations to an amount as low as 12 percent of the initial value. However, strategies to avoid this include ...
Learn More » |
| 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 » | |
| 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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