That situation will most likely reverse itself with interest rates poised to fall in 2001 due to Federal Reserve actions to lower rates. We think international stocks will do well in 2001 as long as a severe recession does not occur in the U.S. this year. On the political front we have some positive news too. With George W. Bush in the White House, there is a good chance we will be receiving a tax cut sometime this year or next. Let s hope that we also receive some relief on estate taxes too.
Inflation is likely to remain low as long as energy prices don t go wild.
Potential negatives in the political arena remain the same. A Middle East crisis or some other unanticipated political event could throw the market into turmoil. While that s easy to say, we do understand that emotions do come into play during a trying year like 2000. We therefore encourage you to call us with any concerns you may have about your goals or your portfolio. Inc. All rights reserved.