The market looks out 12 to 24 months. We are beginning to see the early flow of money into equities that will define a bottom and set the stage for the next major market advance. Are investors crazy or is their guarded optimism logical. We believe that a further interest rate cut is to be expected in the near future. We believe that a cut in all marginal tax rates, elimination of the marriage penalty and death tax is a high priority of the new administration.
Inflation is nowhere to be seen.
We believe many onerous government regulations are going to be eliminated. We believe that true tort reform may take place relieving another huge economic burden. We believe that Social Security monies are going to be more intelligently invested. Any change in Social Security investment policy can t help but stimulate the economy. Instead of a two percent return, even an investment in traditional government insured bonds will double or triple the return that will accrue to Social Security beneficiaries.