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This week, Mike Posey continues his Retirement Focus series on how to invest during retirement. In this installment, Mike discusses the asset allocation option, and its many variations found in the investment industry today. Asset allocation programs based on "Modern Portfolio Theory" (MPT) are among the most common investment strategies used today, primarily because MPT lends itself to computerization. However, the strategy is not without its critics, and individual allocations to the various asset classes can differ significantly among the various financial services industry players. You definitely need to read Mike's analysis so you can be fully informed when evaluating post-retirement asset allocation strategies....

The Fed left interest rates unchanged at 2% at the FOMC meeting last week, despite warnings in the media that rates would be increased. To the contrary, I have argued that the Fed will leave rates unchanged all year, and the FOMC policy statement last week supports that view. There are indications that inflation will moderate later this year, which will take pressure off the Fed to raise rates. Next, we turn our eyes to the stock market and ponder whether we are looking at a continued sideways market for several more years. If so, this will be bad news for millions of Baby Boomers that have not saved enough. Maybe it's time they consider something different, such as the investment programs I recommend....

This week we begin by taking the pulse of the US economy, which is holding up better than most analysts have expected. 1Q growth was better than forecast, and it now looks like the 2Q will be better than expected as well. The bad news is that inflation is on the rise, and there are fears that the Fed will begin to hike interest rates soon - but then maybe not - I'll give you my take on it. Finally, we focus on the presidential race which seems to be tightening according to the national polls. I will highlight Obama's background and his positions that bother me, and why I think he is the most arrogant candidate in a long time. Finally, we will take a detailed look at the 11 "battleground" states where the race could go either way. Feel free to share this analysis as you see fit....

This week, Mike Posey continues his Retirement Focus series on how to invest during retirement. In this installment, Mike covers the variable annuity option, which is gaining in popularity among retirees. I think this is a very important topic for any investor, especially in light of some of the questionable marketing tactics used to promote these contracts. You definitely need to read Mike's analysis before attending one of the "free lunch" seminars touting variable annuity investments. Mike also includes one of his "Retirement Tidbits," which discusses a retirement resource that I think you may find especially helpful....

The US economy has held up better than most analysts expected for the first part of this year. But it does look like economic growth will go negative for at least the next 2-3 quarters, meaning a mild recession is likely in the months ahead. Meanwhile, inflation is definitely on the rise, what with energy and food prices exploding. The obvious question is, what will the Fed do? This week, we investigate the economic outlook in detail for the next year or so, the trends in inflation and how the Fed may react. More importantly, the investment outlook for the next several years is one of modest returns at best, and the risks to the downside continue to increase. At the end, I have some ideas for how to invest successfully in this high risk environment....

This week, we explore the ethanol myth, and why not, since corn prices have recently exploded to over $6 per bushel, an all-time record high. As a result, farmers are planting corn everywhere they can and selling much of it to ethanol producers. But upon closer examination, we find that corn ethanol is not a very efficient fuel to produce or consume, especially if we strip away the massive government subsidy of $1.90 per gallon....

Now that Obama appears to have a lock on being the Democratic candidate for president, we now shift our focus to John McCain. We all know that McCain is no conservative - not by a long shot. However, the real question is how the Republican "base" will vote, if they vote at all. For years, this base has been made up of white, married Christians, but there are indications that the Republican base may be changing. If so, the 2008 election may offer us a glimpse into the future of Republican politics. This week, I will reprint a very interesting article by Dr. Alan Abramowitz that discusses the shrinking Republican base. After that, I'll offer my own analysis of the situation....