Heald Financial Advisors Presents
Weekly Economic Update for the Week of December 15, 2008

Quote of the week. “The possible’s slow fuse is lit by the imagination.” – Emily Dickinson
TARP funds for GM, Chrysler? Maybe. As Vanguard Group founder John Bogle put it Friday, “Congress has really punted the ball over to the White House.” A bill to loan $14 billion to both automakers stalled in the Senate, but funds may come from the Treasury. “Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes,” Treasury spokesperson Brookly McLaughlin said Friday. The Bush administration had previously frowned on the use of TARP money to assist domestic automotive firms.1
PPI, retail sales down. According to the Labor Department’s Producer Price Index, wholesale prices fell 2.2% for November; the Commerce Department said retail sales were down 1.8% last month. Why? Some clues: in November, retail gasoline sales fell by 14.7%, gas prices dipped by 25.7% (a month-over-month record), and overall energy prices fell by 11.2%.2
Pending home sales fall 0.7%. November’s dip was much less than private analysts had forecast; the expectation was for a 3.5% decline in the National Association of Realtors index. NAR’s new projection has residential resales at 4.96 million for 2008 and 5.19 million for 2009.3
A mostly positive week. The NASDAQ ascended 2.08% last week while the S&P 500 gained 0.42%. The DJIA was nearly flat for the week, losing just 0.07%.4
% Change Y-T-D 1-Year 5-Yr Avg
DJIA -34.94 -35.95 -2.81
NASDAQ -41.91 -42.32 -4.19
S&P 500 -40.09 -40.82 -3.62

(Source: CNNMoney.com, 12/12/08)5

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
Riddle of the week. What question can you never answer “yes” to?
Contact my office or see next week’s Update for the answer.

Last week’s riddle: An elderly man walks. Two young men in excellent physical condition are just a few feet behind him, and they are sprinting. No matter how fast they run, they can’t catch up with him. Why can’t they – and where are these people?

Answer: All three are on treadmills in a gym.
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These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the 'NYSE') and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Professional for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.



Citations. 1 bloomberg.com/apps/news?pid=20601087&sid=aJ2Wj18nV2_Q&refer=home [12/12/08]
2 usatoday.com/money/economy/2008-12-12-retail-sales-wholesale-prices_N.htm [12/12/08]
3 online.wsj.com/article/SB122883352344691335.html?mod=googlenews_wsj [12/10/08]
4 cnbc.com/id/28198094 [12/12/08]
5 money.cnn.com/data/markets/dow/? [12/12/08]
5 money.cnn.com/data/markets/nasdaq/? [12/12/08]
5 money.cnn.com/data/markets/sandp/? [12/12/08]
5 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F12%2F07&mode=add&symb=DJIA [12/12/08]
5 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F12%2F03&mode=add&symb=DJIA [12/12/08]
5 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F12%2F07&mode=add&symb=COMP [12/12/08]
5 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F12%2F03&mode=add&symb=COMP [12/12/08]
5 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F12%2F07&mode=add&symb=SPX [12/12/08]
5 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F12