Investment advisory services offered through Sharma Associates, Inc.
Securities offered through Resource Horizon Group, L.L.C., Member FINRA,  SIPC
1350 Church Street Extension 3rd. Floor, Marietta, GA Phone: 770-319-1970
Sharma Associates, Inc. and Resource Horizons Group, L.L.C. are not affiliated.

Year 2010 is in the books. It was indeed an impressive year for the stock market like 2009. After hitting a rough patch during the early summer months, the S&P 500 index finished the year with a gain of 12.81%. The Dow Jones industrial average was not far behind, returning 11.06%. The technology-heavy NASDAQ Composite index had the best performance with a gain of 16.92%. Staying the course did have its benefits.

In spite of two good years in the stock market, the S&P 500 is still around 20% below its all time high in October 2007. The Dow Jones industrial average is also around 18% below its all time high in October 2007. The technology-heavy NASDAQ Composite index is still around 44% below its all time high in March 2000 (remember the tech bubble)

In the emerging markets (BRIC):
BRIC Index (Brazil-Russia-India-China) is still 18% below all time high of Nov.2007. The Indian Mkt. (Bombay SE Sensex Index) market is around 2% below its all time high established in January of 2008. The Chinese Mkt. (Shanghai SE Composite index) is also 50% below all time high of October 2007. The Brazil market is also 20% below it all time high of May 2008.

A vicious decline in S&P 500 to 676.53 on March 2009, has forced many investors to bail out at or near the bottom, proclaiming that stocks are no longer be a path to wealth creation. Since that March low, stocks have nearly doubled. And this rally is not over. I would not be surprised to see stocks challenge their all time high over the next one to two years.

Earning are projected to reach all time high and interest rates, despite their recent run up, are still near historic lows. These are the ingredients of a bull market. Robust profits and corporate cash could power a third year of gains and history also indicates that a third year of gains are more likely than not. Eleven times the S&P 500 rose for third year in a row and five times it declined. So if history repeats itself, 2011 has a good chance to be an up year.

Bull markets have been known to climb a wall of worry, and there is no shortage of worries. There are risks in any market. Any thing can happen at the present time also these risks are significant.

1. Budget and trade deficit
2. High Unemployment
3. Inflation risk because of quantitative easing (QE)
4. European debt crisis.
5. Emerging markets are already trading at very high multiples and are increasing interest rated to fight inflation.
6. The Great Deleveraging-As debt contracts, this should bring weak economic growth.

The US economy is recovering as expected. Stock market is creeping to successive post recovery highs. Jobless claims continue to edge downward. Overall the global economic picture is increasingly more positive as recovery continues at a steady pace. Further more history favors a return to the mean, world is getting smaller and prosperous. Innovation will surprise us again. Quality companies are not short sighted. Equities can help us to protect the purchasing power in the rising inflation environment.

As you know, past performance is no guarantee of future results, At any point in time your investments may be worth more or even less than your original investments due to the market fluctuation.

Retirement Income Planning:

It is important to keep in mind that as life expectancy increases, more and more of us will live into our late 80s and beyond  (particularly retirees). I specialize in retirement income planning, building and preserving wealth without any conflict of interest. Future market performance is uncertain. Poor market performance can dramatically increase longevity risk associated with increasing life expectancy. Certainty of income is important for the peace of mind especially during retirement.

A roller coaster of a stock market has made a layperson wary. Variable Annuities offer a lifetime benefit with a protection from down markets and potential to benefit from up markets. Guaranteed death benefit and guaranteed income benefit for life provides a peace of mind especially during retirement. I suggest to invest at least 25% to 30% of your retirement funds into such protects. Once this life plan is in place, you are free from worrying about the income you cannot outlive.

Wealth Appreciation Strategy:
It is important to invest a small amount of money every month to take advantage of dollar cost averaging concept. Wealth appreciation strategy is one of a good investment vehicle. Should you need more information, please let me know.

I understand that my clients place much more than their money with me; they trust their financial future to my care. I take my responsibility very seriously, and trust and personal integrity is very important to me. My financial advice will always be in the best interest of my clients without any conflict of interest.

As you know in today's busy life-style, one should look for ways to simplify life and consolidate all your investments with one advisor. The main advantage of having one advisor is, that he or she will be able to analyze your financial situation and provide much better recommendation and you will have to deal with just one advisor for all your financial information needs. However, it is equally important that you feel comfortable with and trust your advisor.

If you have questions or need additional information, please feel free to call or email me. In the evening, I am usually at my desk from 8:30 PM to 10:30 PM doing the paperwork or catching up on my reading. Feel free to call me during this time as well. During the day you can always get hold of me in my office or mobile phone.

All the best, with regards