Excluding the energy and financial sectors, earnings for the S&P 500 have returned to pre-crisis levels. We forecasted 2010 as a return to stability and it appears that this is happening.
Carmel, CA (PRWEB) April 2, 2010
Doolittle & Ganos Investment Counsel, LLC maintains its positive economic and market outlook for 2010.
Economic data recently released by the Federal Government and various market institutions is tending to validate the 2010 forecast of Doolittle & Ganos Investment Counsel, LLC. In January, the firm released its economic and market forecast for the year. It projected that the U.S. economy would likely grow by over 4 percent after an adjustment for inflation. This week’s “Red Book” report from the Federal Reserve Bank indicates retail sales are up roughly 4.4 percent over the year-ago period. Moreover, the Institute for Supply Management’s Manufacturing Index indicates substantial business growth and has hit a six-year high.
The news on market fundamentals is just as good. "Excluding the energy and financial sectors, earnings for the S&P 500 have returned to pre-crisis levels. We forecasted 2010 as a return to stability and it appears that this is happening," said Jerry Matecun, Portfolio Manager at Doolittle & Ganos Investment Counsel, LLC.
Balancing this optimism, the firm believes things might become “too good”. The emerging economies continue to grow at a robust pace. This growth is manifesting itself in infrastructure build-out and is translating to higher prices in basic materials. Inflation in wholesale prices and import prices has risen to worrisome levels. As the employment situation in the U.S. improves, the firm is concerned that consumer-level inflation might rise to an unacceptable level. However, Mr. Matecun believes that where challenge exists so does opportunity. To hedge these risks, the firm is emphasizing international equities, natural resources, and inflation-protected securities.
About Doolittle & Ganos Investment Counsel, LLC
Doolittle & Ganos is a wealth manager registered with the U.S. Securities & Exchange Commission as an investment advisor. The firm has offices in Carmel and Walnut Creek and serves clients from the North Bay Area to the Central Coast to the Central Valley. Founded in 1975, the firm assists business owners, professionals, and executives who are retired or within five years of retirement translate a lifetime of success into consistent retirement income. The firm also assists non-profit organizations with the goal of stewarding and transferring wealth to successive generations. It provides sophisticated investment and financial planning solutions for its clients' complex needs. Its services include wealth management, investment management, and trust administration services.
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