Glassman Wealth Services LLC

In our Monthly Economic report, we take an in-depth look at the changes in our markets and the effects of economic policy nationally and globally. This broader perspective provides greater clarity in understanding the forces that affect investment performance and future expectations. Click Here to Read More.

For many strategists, it is never too early to start predicting the future. In this instance, the annual ritual of S&P price targets is already in full gear for 2011.

Equity strategists are actually doing quite well for 2010, with the markets only a few points away from the year end price target that was estimated at the beginning of this year.  It should come as no surprise that analysts are expecting the markets to climb higher next year, resulting in a gain of slightly less than 10%.

For the first time in nearly two years, fixed income mutual funds experienced a net outflow.  In the two weeks ending November 24^th, bond funds recorded outflows of roughly $6 billion.  Compared to the massive flows into bond funds over the previous two years this may seem rather insignificant, but it may be the start of a shift in sentiment for investors.

Last week, corporate profitability was added to the third revision of third quarter GDP growth and not surprisingly, corporate profits were up more than 28% from the same point one year ago. Up to this point little of that money has benefitted the overall economy; however, that trend may be changing.

Corporate profits reached their highest point on record during the most recent quarter, at an annualized rate of $1.6 trillion. From a historical perspective, corporate profits as a percent of GDP are still slightly above the long-term averages.

Over the last several years, companies hoarded cash, at the expense of hiring and expansion. However, in recent quarters, nonfinancial corporations are showing signs of reducing liquid assets and cash in favor of capital expenditures and hopefully, hiring.

In our Monthly Economic report, we take an in-depth look at the changes in our markets and the effects of economic policy nationally and globally. This broader perspective provides greater clarity in understanding the forces that affect investment performance and future expectations. Click Here to Read More.

For one special evening each year, Barry Glassman puts away his business attire, dons his chef toque and whips up a tasting menu to raise funds to find a cure for brain tumors. This year, the 9th Annual Chef Night was no exception as Glassman hosted 140 clients, friends and colleagues at Teatro Goldoni restaurant in Washington, D.C. and raised over $35,000 to benefit the National Brain Tumor Society.

Chef Night was founded by Glassman to raise awareness and funds to advance a cure for brain tumors. Since losing a high school friend to a brain tumor, Glassman has dedicated over 20 years to championing a cure. Chef Night is completely underwritten with all proceeds going to the National Brain Tumor Society.

“Chef Night allows me to combine my love of sharing great food and wine with friends and family while benefiting a cause that I am passionately committed to,” said Glassman.

In addition to a 6-course tasting menu, guests enjoyed amazing wines many from boutique wineries in California and Washington. The Chef Night Silent Auction featured both rare and unique wines from around the world. Over 100 bottles, many in large formats were auctioned off.

Glassman is also on the board of directors of the National Brain Tumor Society, the largest organization that funds innovative brain tumor research and offers comprehensive services to those affected by brain tumors from coast to coast.

We hope you enjoy these pictures of Chef Night 2010.

Based on all common measures, inflation is entirely nonexistent at this point in time. But if you ask the typical person how they feel, you might wind up with a very different response.

On Friday, we learned that the Consumer Price Index ticked up 0.1% in September for a 1.1% gain in the past 12 months.

Since consumer prices have stagnated, recipients of social security will not receive a cost of living adjustment (COLA) for next year, the second year in a row. Sadly, according to research from the Employee Benefit Research Institute, social security accounts for nearly 40% of the income for individuals 65 years and above.

What is not reflected in the most recent CPI figures, and the problem for those not receiving COLA adjustments is that the world is becoming a more expensive place in certain respects. Corn prices surged after the Department of Agriculture announced that corn production would fall 3.4% in 2010. Wheat is undergoing comparable pressure due to drought in Russia and dry weather conditions in the US Midwest, and cotton prices are now at their highest levels since 1870.

Producers, those who make the goods that we consume are experiencing higher production prices, up 4.0% over last year. Up to this point, producers have more or less been forced to “eat” higher commodity costs since they recognize that consumers are not in a position to pay significantly higher prices. However, relying on producers to continue subsidizing those costs is unrealistic.

Inflation is arguably not an issue for the time being, but with the Fed prepared to unleash trillions in additional liquidity, the outlook for inflation is more uncertain than ever. Investors and consumers alike should tread very, very carefully.

China remained our largest trading partner as the deficit with China rose to a record $28bln in August. Government officials have expressed strong displeasure with China’s unwillingness to appreciate its currency and this news will only serve to fan the flames.

As the largest holder of US treasuries in the world, China holds almost $847bln in US Treasury securities. Chinese officials are quick to express their own dismay with the US fiscal position, and that unease is reflected by continuous declines in treasury holdings during recent periods. In a somewhat frightening fashion, not only is Japan poised to overtake China as the largest US creditor, but our very own Federal Reserve is also on the verge of usurping China.

The Yield Drought – Retirees’ Greatest Challenge 

The US government continues to bail out banks, homeowners and the economy at the expense of retirees and conservative investors. As a result, we are suffering from a serious yield drought. Glassman Wealth Services’ white paper explains the reasons for our current low-yield environment and the strategies we use to bring relief to retirees and those who rely on income producing assets.  Click Here to receive your free white paper.

In our Monthly Economic report, we take an in-depth look at the changes in our markets and the effects of economic policy nationally and globally. This broader perspective provides greater clarity in understanding the forces that affect investment performance and future expectations. Click Here to Read More.