Julie with a B

Thursday, April 21, 2005
 
It's still the economy. . .
I think . . . therefore . . . I'll probably lose money on this. Many assume that because I am an accountant that I know something about investing. No. Uh, really, and I'm pretty bad at it. I bought a house in California and 8 years later had to sell it for what I had paid for it, and lucky to get that. Really it's all in the timing. My 401k? Worth $20,0000, then $30,000 and now about $15,000. hmm.

However, since the market is dropping like a stone and inflation is rising, I'm going to shift a bit of money into the money market side of my investments.

From the NY Times:
"Fears of rising inflation sent stocks to new lows for the year yesterday after the government reported a sharp increase in consumer prices that all but guaranteed that the Federal Reserve would continue to push interest rates higher even as the economy may be slowing.
Last week investors were worried about the effect of slower economic growth on corporate earnings. The addition of inflation fears to the mix could put nerves on Wall Street even more on edge."
. . . . "Stocks fell further in the afternoon after the Federal Reserve reported its summary of economic activity around the country. The major theme of the report was that cost pressures have been rising and that businesses had been able to pass them on in higher prices."

I will also point out that wages have not been part of the rise in costs. We are paying higher prices but our wages have not increased, yup, that's a net loss to most of us.

From the Washington Post:
"Inflation and interest rates are rising, stock values have plunged, a tank of gas induces sticker shock, and for nearly a year, wages have failed to keep up with the cost of living.
Yet in Washington, the political class has been consumed with the death of a brain-damaged woman in Florida, the ethics of the House majority leader, and the fate of the Senate filibuster. "

For much of the nation, the outlook is not rosy. The issue is that Washington doesn't seem to be noticing. Now this is a bi-partisan "not noticing" so don't get on my case here about a Left/Right complaint. It isn't. I think there is going to be some general shaking of the political tree in the next election and that it may be hard to predict what will fall out.

- posted by JulieB @ 12:56 PM
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