CFO Commentary — Monthly Economic Update for March, 2009

Edited by J. Michael Stolp.  These views should not be construed as investment advice.

Quote of the month. “You can tell whether a man is clever by his answers. You can tell whether a man is wise by his questions.”– Mahfouz Naguib

The month in brief. Months ago, Warren Buffett compared the U.S. economy to a great athlete who had suffered a heart attack. February was the month in which a team of financial and political surgeons in Washington worked furiously to try and restore its health, while investors paced restlessly in the waiting room. Worries over banks dragged on stocks. The government let Wall Street and Main Street know that help was on the way, but while Main Street applauded, Wall Street was a tougher sell.

CFO Focus — Why Stocks Still Matter

WHY STOCKS STILL MATTER

The market has been hurt, but equities are still important.

If you are retired or nearing retirement, you may have recently directed more of your invested assets into cash, or into bonds, CDs, fixed annuities or other investments outside the stock market. That’s understandable. However, whether you are 65, 45 or 25, there is still a need to grow your money over time. Stock market investment gives you the potential for remarkable growth in a way few investment choices do. Here’s why stocks still matter.

Allianz Financial Results for 2008

Allianz Group achieved operating profit of 7.4 billion euros

Net income from continued business of 4 billion euros / Sale of Dresdner Bank completed / Net loss of 2.4 billion euros for the Group taking into account discontinued business / Board of Management proposes dividend of 3.50 euros per share for 2008

CFO Commentary — A Busy Week

Edited by J. Michael Stolp

Weekly Economic Update for the Week of March 2, 2009

Quote of the week. “Success is the sum of details.”– Harvey S. Firestone

A busy week. President Obama unveiled a federal budget plan to cut the $1+ trillion deficit to $533 billion by 2013. It would include a $634 billion health care reserve fund, return the highest tax brackets to 36.0% and 39.6% in 2011, return the capital gains tax rate to 20.0% in 2011, and make the Making Work Pay and American Opportunity tax credits permanent.¹ The stress test began for America’s 19 biggest banks; any shaky thrifts would be offered 6 months to raise private capital before getting more federal bailout money.² Finally, the Treasury struck a deal with Citigroup to convert up to $25 billion in preferred Citi shares to common shares.³