The numbers through June 18th, show year-to-date declines in the Dow and NASDAQ, with numbers down -.4% and -.8% respectively. Growth was seen in the S&P 500 and Russell 2000, with those numbers coming in at 2.1% and 2.4% respectively. Most clients have limited exposure to the NASDAQ, which contributed to an above average total return for the period. Remember you don't want to jump in and out of investments, but you do want to consistently rebalance your portfolio to capitalize of market activity.

Where do we go from here? The nations' economy is growing, corporate earnings have been steadily climbing, bond markets have braced for a rate hike, and we are in an election year. The broad markets remain optimistic through the year's end. We will always have international risks to concern ourselves with and there is the looming concern about the stabilization of oil prices. The automakers are reducing prices on SUV's, in anticipation of an inventory glut due to rising fuel prices. We have seen a pull back in the oil prices, but it's not clear if this is a temporary measure.

As for our portfolios, we will continue to use Ginnie Maes and TIPS as anchors to all large investment accounts. Less exposure will be give to the REIT mutual funds and we will be phasing out of financial mutual funds, but still have a core emphasis on individual financial stocks such as Citigroup, JP Morgan, and Bear Stearns. The IPO market as well as merger & acquisition (M&A) activity should continue to have a positive effect on the back half of the year, and individual financial firms serve to benefit from this activity.

In a recently released report analyzing the top 25 performing mutual funds for 2003, without consideration of sector funds, the following results were reported - 21 out of the top 25 mutual funds were no loads. That represents 84% of the top performers. The odds of a commissioned broker selling you a no load mutual fund are poor. In order to receive the best, undiluted information it pays to hire an objective fee-only advisor.

Also reported in the survey was stellar performance in the mid-cap group. One of our favorite funds in the area is Leuthold Core. Small caps also dominated the list, with double the returns of their large cap counterparts. In this broad category, the firm utilizes Royce Premier.

Don Phillips, Managing Director of Morningstar will be speaking at a luncheon event this fall.

Friday, September 17th - 12:00 p.m. The Financial Planning Association of Rhode Island will be hosting this luncheon at Quidnesset Country Club.
Topic: Mutual Fund Industry Updates, followed by a Q & A session. Tickets are $50, with limited availability. Please contact me for more information at 401-727- 8151 or...

Angela Thomson was recently quoted in the May 25th and the June 1st editions of the Providence Journal. The first article discussed municipal bonds and determining their fit within your portfolio, as well as other investment alternatives. The second interview covered the RI Estate Tax Laws and planning methods to reduce estate taxable liability.

At Coastal Financial Planning, Inc. we are proud of the recognition we receive from various media outlets. Our objective, sound advice continues to attract writers seeking reputable planners as a source of information. If you know of anyone seeking a new advisor, please offer our name as a referral. Thank you.