My September blog starts off with what should be a joke but is really the thinking of our many liberal friends. The following article appeared in the San Francisco Chronicle written by one of its readers. “To all you hunters who kill animals for food, shame on you; you ought to go to the store and buy the meat that was made there, where no animals were harmed.” How about that.

      The public is finally aware of the pension problems involved with defined benefit plans. There has even been suggestions by politicians that these plans be converted into 401(K) plans. The main problem that has developed with 401(K) plans is the tendency to fail to diversify rather than place too much money into company stock. Forbes August 30 2010 edition cited 401(K) plans with large positions in company stock: Coca Cola 51%, GE 42%, Johnson and Johnson 28%, McDonalds 45% and Target 42%. Just consider the employees of these companies that had large positions of company stock in 401(K) plans: Bear Stearns, Enron, Lehman Bros Washington Mutual and Worldcom. My personal limits are to hold no more than 25% of one’s 401(K) in company shares. Following Modern Portfolio Theory and its emphasis on diversification would save a lot of grief.

      Another “Obama blooper” On September 17, President Obama spoke to the Congressional Hispanic Caucus. He quoted from the Declaration Of Independence and here is what he said: "We hold these truths to be self evident, that all men are created equal, endowed with certain unalienable rights, life and liberty, and the pursuit of happiness." What was left out? Read on: after are created equal, that they are endowed by their CREATOR with certain unalienable rights…. You read it correctly, Obama left out Creator. Here is the President changing the verbiage of the Declaration of Independence.

      The Muslim community is now “sugar coating” its demands to build a mosque next to the former World Trade Center which, incidentally, I stayed in years before 9/11 to attend a business conference and spend several nights in the hotel. If one reads history of Muslim conquests they can learn that mosques are built on battle sites won by Islam to celebrate a victory over an opponent and to tell the world of their battle successes. Does the liberal media and the Muslim apologists have any idea as to the threat of Islam?

      The markets have been reacting favorably to the forthcoming election. My opinion after 40 plus years as a financial advisor and student of past elections indicates that the financial markets are pointing to the possibility of a Republican victory in the House and Senate. The Democrats insistence on higher taxes, more regulation, unpatriotic rhetoric favoring nations that chastise America and federal spending policies that could “break” our economy. Obama’s desire for higher tariffs is another looser and read the policies of FDR about how his Keynesian economics held down the recovery in the mid-1930’s that raised taxes, increased tariffs that virtually stopped international trade and created regulations that stifled business. The problem then as now is the lack of policies increasing incentives by lowering taxes and providing support for the private economy.

Gary E. Marsella

Return to Home Page