Will This Gift Keep On Giving?

Written by Charles Payne


Continued from page 1

The best gift that investors could receive now a day isrepparttar gift of confidence. They need confidence thatrepparttar 112751 system is working for, not against them. A flash inrepparttar 112752 pan isn't going to make that confidence a reality. It's great to see thatrepparttar 112753 market still hasrepparttar 112754 ability to post a solid week, but it isn't enough.

Obviouslyrepparttar 112755 Bush administration realizes this as members parachuted overrepparttar 112756 airwaves this weekend working like Santa's elves onrepparttar 112757 eve of Christmas. It is unlikely that their talkfest did much to soothe nerves, but it does plant seeds. So perhapsrepparttar 112758 real gift ofrepparttar 112759 week in general is something akin torepparttar 112760 works of John Chapman - also known as Johnny Appleseed.

The gift of last week could wind up being a seedling, a small piece of life that could germinate and grow, if watered and protected properly. It wasn't an ark, but instead could grow into a lifeboat for investors. I brought uprepparttar 112761 question of whether last week was just a natural occurrence. If so its continuation isn't preordained or certain. Most seeds in nature don't grow to be giant trees. They have many natural enemies and impediments. The least of which is a bear sharpening its claws or searching for fulfillment.

I enjoyed last week's action and saw it as a gift because it helped to establish parameters that will allow us to analyze and plotrepparttar 112762 week ahead. Ironically,repparttar 112763 best gift investors could receive inrepparttar 112764 days ahead is forrepparttar 112765 market to test last week's lows and rebound. As it stands now I'd say thatrepparttar 112766 majority of investors shunned last week's gift.

Return to sender wasrepparttar 112767 rubberstamp most employed asrepparttar 112768 market was rallying. But everyone likes to be wooed, so ifrepparttar 112769 gifts keep coming then sentiment could improve. The risky part forrepparttar 112770 market is that sentiment improves too fast. That is because with improving sentiment comes higher expectations. It is too early for investors to expect anything exceptrepparttar 112771 worst. When they look at that Shetland pony, they have to see a Trojan horse.

This doesn't have to go on and on forever, but just a little while longer. The majority of talking heads on television these days are telling investors "we are at or close torepparttar 112772 bottom". I've felt that way for a few months, but feel stupid saying it. "Close" torepparttar 112773 bottom could be days or months from here (I'm still calling for a substantial fourth quarter rally) and I wish I could be more precise. I don't want to be onrepparttar 112774 tube a year from now bragging likerepparttar 112775 bears that got it wrong for a decade, and are now acting like superior market players.

Folks,repparttar 112776 best gift you can give yourself now is to viewrepparttar 112777 market with open eyes, know that it will shift, and stay upbeat about future possibilities and is hedged for current risk.

FINAL THOUGHTS AND OBSERVATIONS I thinkrepparttar 112778 time to really considerrepparttar 112779 market as a long-term investment may come after a few more public arrests occur andrepparttar 112780 Dow doesn't rally for 500 points.

We're close folks.

The two biggest dates onrepparttar 112781 calendar will be August 14th whenrepparttar 112782 largest of public companies will beganrepparttar 112783 new procedure of CEO's personally signing off on financials. Andrepparttar 112784 biggest day ofrepparttar 112785 year in terms of anticipation may be September 11th,repparttar 112786 one- year anniversary.

I feel a little like Laocoon, warningrepparttar 112787 citizens of Troy not to bring that horse into city. Telling them not to lower their guards and not to rip downrepparttar 112788 walls that have protected them.

The market has to be tested beforerepparttar 112789 worst is over, and that test wasn't last week.

MORE ABOUT WALL STREET STRATEGIES

Since 1991, Charles Paynes' Wall Street Strategies has successfully provided timely and effective equity advice to institutional money managers, retail brokers and individual investors of all types, and has thousands of subscribers from hundreds of brokerage firms. http://www.wstreet.com.

For more information, please email research@wstreet.com


Tax Treatment for Coverdale IRAs

Written by Tony Novak


Continued from page 1

This tax issue aspect is separate and distinct fromrepparttar issue of tax credits for higher education – known asrepparttar 112750 lifetime learning credit andrepparttar 112751 Hope Scholarship credit. The tax credits have their own rules. Also, Section 529 tuition plans offer additional tax deferral alternatives.

One common theme in all of these plans is that upper income taxpayers cannot effectively use these tools to reduce their current tax bill. These built-in income limitations plusrepparttar 112752 effect of alternative minimum tax rules make these tools ineffective for current-year planning, but can still have a significant tax effect over a longer period of time. Upper income taxpayers should considerrepparttar 112753 use of various types of trust accounts for more effective income tax planning strategies.

For more information on this topic,repparttar 112754 IRS has a well-written Publication 970 titled “Tax Benefits for Higher Education. This is available by calling 1-800-TAX-FORM or onrepparttar 112755 Web at www.irs.gov/pub/irs-pdf/p970.pdf.

About the Author: Tony Novak, MBA, MT, is a financial adviser based in Narberth, Pennsylvania. He is editor/publisher of “Tax and Benefit News” and moderator of the tax forum for financial planners at “Financial Planning Interactive”. He is available by telephone at 1-877-529-7435 to address public inquiries on tax and benefit planning issues free of charge through OnlineAdviser service sponsored by www.MedSave.com and www.FreedomBenefits.com.


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