Gold 401K

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No accumulation in 2010, but watch for 2011

No accumulation in 2010, but watch for 2011

By: James Solloway, CFA, Senior Portfolio Manager Global Portfolio Strategies

Summary

• The overall repair process continues. The rebound of the United States appears to move at a pace slightly faster than the consensus expected a few months ago, and is more alive than the recoveries seen to date in most developed countries. economy based on trade in the developing world are growing rapidly.

• The U.S. yield curve has increased to near record levels, indicating a very liquid monetary environment. The chances are high that economic activity continue to accelerate as to replenish stocks of companies have worked on very low levels. This should lead to higher levels Employment has risen and consumer spending, setting in motion a virtuous cycle of economic growth.

• Expect sustained economic recovery in 2010, but there are obvious areas of weakness – the household sector, small businesses, state and local and construction.

• Strong economic weakness and low labor costs would keep inflation under U.S. control in 2010 and beyond, while prices for industrial products eligible for the replenishment of stocks and a strong recovery in world trade. Inflation in other developed countries should remain moderate, although the productivity was low compared to the U.S. Meanwhile, signs of inflation rebound in China have already caused money "against the tide" in this country and increase pressure for revaluation of the yuan against the dollar.

• The yield curve of U.S. Treasury is likely to remain exceptionally strong in 2010. Some flattening of the curve may be that Federal Reserve to start raising interest rates in the short term in response to unemployment and low. We suspect that the Fed will continue with great caution. high unemployment, low inflation and moderate underlying our policy until the year may even maintain the federal funds rate in the range from 0% to 0.25% of the year. At the end of the range of maturities, the links can remain in the range close for an extended period.

• Dollar pessimism is widespread, however, the trade position of the United States has improved considerably in Europe and Japan suffer a significant loss of competitiveness.

Concerns about debt Sovereign of some eurozone members could lead to a major commercial flight to quality in the dollar next year that has already occurred. The weak dollar may persist long term, but perhaps not as much a one way street, as they see fit.

• Companies U.S. are particularly well positioned for a strong improvement in profits last quarter. This growth is due to higher productivity and strong cost reduction achieved in the fall of January 2010 Economic Outlook 2010. operating leverage should provide good support for markets Fellows, at least the first half of the year.

• We have a positive view in respect of the shares at dawn the new year. In the last part of the year, however, the poor fiscal situation of many countries and the global economy questionable stamina in 2011, you can create some volatility. We hope many of the scholarship in the fall of this year because of sales increases faster than stock prices. quality stocks / markets are expected to continue their recent improvements after becoming ill during much of 2009.

• The economic stakes are being built in 2011 comes to view. Raising taxes and Regulation of stimulus plan could impede the expansion Obama harder than the overall forecast. The increased costs resulting regulation of the industry has increased and financial reform, have the potential to slow economic growth.

• The rising gold price reflects investor concerns to the deterioration of positions developed budget savings fears of inflation, and a general lack of confidence in fiat currencies1, especially the dollar.

• Since gold has little intrinsic value, is the ultimate barometer the confidence of investors and can not be judged against the standard evaluation indicators, such as price / earnings (P / E) or reasons discounted cash flow. Although still well below the record 1980 the real price of gold seems high compared to the historical record the past 750 years. A rebound in the dollar could cause a sharp correction in gold prices.

This material is provided by SEI Investments Management Corp. for educational purposes only and is not intended to be investment advice. The reader should consult your financial advisor more information. This material represents an assessment of the market environment at a specific moment in time and is not intended to be a forecast of future events, or a guarantee of future results. There are investment risks, including possible loss of principal.

Past performance is no guarantee of future performance index returns are for illustrative purposes only and do not represent the performance the actual portfolio. Index returns do not reflect management fees, transaction costs and fees. You can not invest directly in an index.

1 Fiat currencies are those issued by governments and the declared value although not backed by gold, silver or other element value. The U.S. dollar, for example, is backed by the full faith and credit of the U.S. government, not a product that can be exchanged.

This does not mean that the ILO by John Jastremski, Group superannuation or the author of the book. The views expressed are those of the author and may or may not be a notice of retirement Group representative or John Jastremski.

John Jastremski, Jeremy Keating, Erik Larsen J, Frank Esposito, Patrick Ray, Robert Welsch Felipe Miguel Catalan Reese, Brent Wolf, Andy Starostecki, Group Retirement Verizon, AT & T

About the Author

We are a group of financial professionals who focus entirely on retirement planning and the design of retirement portfolios for the corporate transitioning employee.

John Jastremski is a Representative with QA3 Financial and may be reached at The Retirement Group 800-900-5867

Visit us on the web: http://www.theretirementgroup.com

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