Tuesday, May 26, 2009

Memorial Day 2009 Financial Information

Happy Memorial Day to you and your family. It is very important to remember that one of the purposes of this day is to help us keep our priorities in order. We need to remember the people who served our country and the people who are no longer with us that helped shape us into the people God intended for us to become.

The important financial news events last week included the index of leading economic indicators and the 10 year treasury rate. Thest 2 data points suggested that the economy contiues to improve and we are entering into a growth phase in the business cycle.

Numerous economic data gets published on a monthly basis. Some of this data tells us where we have been, lagging indicators, where we are, current indicators, and where we are going, leading indicators. The data is then compiled into the index of lagging indicators, current indicators, and leading indicators. For an investor keeping track of the index of leading indicators has value. For April, the index of leading indicators showed a 1% improvement over March with 7 of 10 components being positive. A 1% improvement is significant number.

The 10 year treasury rate continues to rise and last week the rate had another significant increase. Having this rate continue to increase is a good sign of economic improvement. This economic situation will pass, all we have to do is get through it.

This holiday, remember the important things of life.

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