
December 23, 2008 Issue 005 Volume 002


WHAT’S GOING ON?
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Interest rates for 30 year fixed rate mortgage rates fell for the seventh consecutive week.
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Now the benchmark 30 year fixed-rate home mortgage in the U.S. fell to a national average of 5.17% last week, which is the lowest since Freddie Mac began its weekly rate survey in 1971.
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Fed designate CIT Group as bank holding company.
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The Federal Reserve on Monday said it has approved CIT Group Inc. as a bank holding company, clearing a key hurdle for the firm to bolster its resources with loans and support from the government’s financial rescue fund.
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533,00 jobs were lost in November, the worst since 1974.
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The unemployment rate rose 0.2% from October to 6.7% as deteriorating economic news continued to
dominate the headline. In fact, this month we had the following announcements:
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a) Chip equipment maker Novellus Systems Inc. said that it will shrink its workforce by 10 percent and cut its chief executive’s pay in half as sales dry up.
b) Insurance, banking retirement and asset manager Principal Financial Group Inc. said it is cutting 550 jobs, about 3.5 percent of its work force.
c) Sony announced that it is cutting 8,000 electronics jobs and closing 5 to 6 plants.By the way, job cut were most drastic in the United States.
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Toyota slashed its earnings forecast for a second time.
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Toyota warned the public that it expect to report an operating loss for the fiscal year through March.
Did you know that this will be the first time this Japanese auto maker first loss since it began reporting results in 1941?

Gold has risen $105.00 in the last 10 trading sessions. It’s rising in response to a new and extremely dangerous tactic being employed by the Federal Reserve.
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Oil fell below $34 on Friday to its lowest level in almost five years as the global economic slowdown overshadowed OPEC’s record supply cuts.
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A source stated that Bernie Madoff’s bigest sales operation, Fairfield Greenwich Group, made more than $500 million over the past five years channeling investors to Madoff. I believe that the firm’s days are numbered.

Achieving Your Financial Goal
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In my interaction with the people who I come across and further discussions with them I have noticed that they lack a clear picture of the purpose of their investments. Everyone just wants to invest and become rich. I wish if that were so easy.
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Do not invest just for the sake of investing. As Ralph Seger rightly said, “An investor without an investment objective is like a traveler without destination.” Although this quote has been used n number of times I would still like to use it here as planning without a definite goal is akin to a traveler without destination.
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First and foremost you must remember the most important aspect of financial planning, and that is, what you want to achieve? Try doing this: jot down 5 important financial goals that you want to achieve in the next 10-15 years. I am sure not many will be able to do this.
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But there is a simple way that may help you to develop a fundamentally sound financial plan and achieve goals for which you are working so hard. The first and foremost step is to note down your goals as this is the starting point of your planning.
Stock Recommendations
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Dr. Stock Pic Prior Recommendations
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…………………………………………………………..Buy ……………………...…Sell
November 17, 08 - Recommend (NYSE:GS): $ 67.79 . Nov. 28, 2008 at $ 78.99
December 01, 08 - Recommend (ISRG):.... ...119.23- .. ..No sell yet (stock at 121.28)
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.Dr. Stock Pick New Recommendation
Red Hat Inc. (RHT)…13.20…..The Blackstone Group (BX)…5.97…..
Alcoa, Inc. (AA)…9.56
NYSE Euronext, Inc. (NYX)…24.57…..Cavitation Technologies, Inc. (CVAT.OB)…1.25
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Next year our stock experts will increase. Giving you more options to improve your finances.

French manager, possible Madoff victim, dead in NY
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A French executive (Thierry Magon de la Villehuchet,) 65, was pronounced dead at 8 a.m. at a Madison Avenue building in midtown Manhattan, New York City Medical Examiner spokeswoman Ellen Borakove said. He was co-founder of money manager Access International.

We’re ticking off the final days of 2008. Good Riddance!

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