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The article presents a reprint of an article by Mike Clowes which appeared in a previous issue of the journal "Investment News." Clowes says that he knows a 60-year-old woman. He says that she inherited the largest share in a small firm. He says that due to the rejection of the bill raising the minimum wage and the estate tax threshold by the U.S. Senate, if the woman dies after the year 2010, her children would have to pay taxes on her estate.

This article reports that social security reform will be a primary objective of the new administration of George W. Bush, with private accounts for younger workers being a key part of it. Already, a great deal of heat is being generated by a debate that has barely begun. Given that more than 70 years have passed since the New Deal, and that the world has changed dramatically during that period, one might think that it is time to sec if a program designed so long ago might not need some tinkering to adapt to modern realities. Most, even after the 2001-2002 bear market, still have unrealistic long-term stock market return expectations.

The article focuses on issues related to executive compensation. The$ 170 billion California Public Employees' Retirement System and the$ 117 billion California State Teachers' Retirement System have said they are targeting four companies next year, in part because of excessive executive compensation. The two giant Sacramento, California-based funds argue that excessive compensation comes in part out of the hides of shareholders. But such institutions are also driven by the desire to reduce the gap between top executives and the average employee, which has become embarrassing.

This article reports that during the 2004 U.S. Presidential election campaign, the federal budget deficit received a great deal of attention. In fact, both candidates promised to cut it over the next four years. But neither paid much attention to the nation's soaring trade deficit, which may be more dangerous to investors in the long run than the federal budget deficit and may already be hurting older investors. The trade deficit seems likely to approach a record $600 billion this year. The trade deficit with China alone hit $18 billion in August 2004.

Many leading business schools have either instituted or revamped ethics courses for master of business administration candidates in response to the corporate scandals that have come to light in the past five years. Executives cheat their shareholders, customers and the government because during the formative years their ethical compasses were never set to true north. While business officers, mutual fund executives and security analysts have taken the heat, there is no reason to think, based on surveys that, lawyers, doctors, politicians and others aren't cheating as well.

In this article, the author says that a number of stock market analysts have noted, the market is usually weak right after an election and strong the year before an election in the U.S. The research shows that the trend in unemployment in the year leading up to an election was a far more powerful predictor of the election outcome than change in gross domestic product or stock market gain or loss. In years where the market showed modest gains, the incumbent outdistanced the challenger by 6-to-1. In years with the smallest gains, the incumbent beat the challenger by a 9-to-1 ratio. According to GMO research, on average, the S&P 500 should slightly underperform the long-term return for the index. That means the market returns this year should still be above 9%.

Perhaps the most puzzling aspect of the mutual fund scandal in New York is that the gains from the market-timing and after-hours-trading activities were relatively small compared with the potential costs of the damage to reputations and possible criminal sanctions. Richard Strong, the chairman of Strong Capital Management Inc., is No. 318 on the Forbes list of the 400 wealthiest U.S. citizens, with a net worth of $800 million. The author questions the reason for which Strong put his reputation at risk by market-timing in his company's mutual funds for a reported gain of about $600,000. It is difficult to understand the case of Strong and mutual fund portfolio managers who have been accused of market-timing, or others who allegedly allowed hedge funds to trade after hours.

This article reports on the compensation of executives of corporations. Recent disclosures of executive compensation packages given in 2002 in the financial sector reveal that chief executives (CEO) do not understand that their personal greed helps fuel investor skepticism that companies are being managed for the long-term benefit of shareholders. Only two CEOs, both from the same firm, have shown any sensitivity to the perceptions of employees, investors and the public, Charles R. Schwab and David S. Pottruck, who until recently were co-CEOs of Charles Schwab Corp. of San Francisco. They received no bonuses for 2002, and they gave back stock option grants for the past three years. The decision left each with an annual base salary of $883,334 and other compensation valued at $10,250.

Reports on the improved performance of stock markets in New York. Indicators suggesting a short-term opportunity in the markets; Threats to the markets.

The article presents the author's comment on the estate tax law of the United States. The author maintains that the small owners are worst hit by the estate tax law of the country. He explains the scenario by taking an example of a 60-year old woman. According to the author, if she died between now and 2010, her estate would owe no taxes. But if she dies after 2010, her children would be liable to pay about $500,000 in taxes. This difference occurs due to the recent changes in the law.

This article focuses on research conducted by Steve Leuthold, chairman of Leuth-old Group, a research firm in Minneapolis, Minnesota, about stock market inflation and deflation. It is as fine a piece of original research, since Mr. Leuthold compared stock returns with inflation back to 1790. Stocks didn't protect purchasing power, his research showed. Mr. Leuthold has updated his research because of the fear of deflation that many investors and stock market experts are exhibiting. The research indicates that stocks perform best in times of very low inflation, defined as 0.1% to 2.0% inflation. But periods of mild deflation also produce solid stock market returns.

Reports on indications of recovery in the stock market in the U.S. Hints which suggests opportunities in the market in the year 2003; Rise in the market despite a lot of uncertainty; Improvement in bank loans, employment and commodity prices; Increase in corporate earnings; Effect of other economies on the economic recovery of stock market.

Discusses the scope of investment in real estate in the year 2002. Factors that led to investments in real estate; Evidences cited by chief economist at Morgan Stanley & Co. in New York Stephen S. Roach, for an increase in housing prices; Opinion of chief U.S.economist of Morgan Stanley on the price factor of real estates.

Focuses on the management of Alan Greenspan, the chairman of the U.S. Federal Reserve Board. Correction of the distortions in the Asian market; Impact of the failure on the investors; Performance of the stock market.