Gary Hokin of Hokin Investment Advisors/Nikoh Securities Corporation Presents:

Weekly Economic Update for the Week of June 16y 5, 2008

Quote of the week. “To wear your heart on your sleeve isn’t a very good plan; you should wear it inside, where it functions best.” – Margaret Thatcher

Best retail sales in 6 months. It seems the stimulus checks had an effect: the Commerce Department reported a 1% rise in retail sales for May, a rise much greater than economists had predicted. Department stores and general merchandise stores had their best month in a year. Business inventories also increased by 0.4% in April.¹

CPI up, consumer sentiment down. The Bureau of Labor Statistics revealed that the Consumer Price Index rose 0.6% in May, triple what it had in April thanks to rises in energy prices. The May numbers brought the annual CPI rate to 4.2%. Meanwhile, the University of Michigan’s June consumer sentiment survey fell to 56.7, well below the 59 median forecast of polled economists.²

“Unjustified” oil prices fall. After Saudi Arabian Oil Minister Ali al-Naimi said staggering oil prices are “unjustified” and that Saudi Arabia would move to increase oil production, crude futures fell further on the New York Mercantile Exchange. With the dollar strengthening, prices fell 2.7% for the week to end at $134.86.³

Foreclosures up 48% from 5/07. So says RealtyTrac, which also noted Friday that 1 in every 483 U.S. homes received a foreclosure filing in May. Nine of the top 10 metro areas for foreclosure filings are in California and Florida (#1, Stockton, CA; #2, Cape Coral-Fort Myers, FL).⁴

Mixed week. The Dow rose 0.8% last week, the NASDAQ fell 0.8%, and the S&P 500 lost .05%.⁵

% Change	Y-T-D	1-Year	5-Yr Avg
DJIA	-7.22	-9.55	+7.00
NASDAQ	-7.46	-5.21	+10.18
S&P 500	-7.38	-11.44	+7.51

(Source: USAToday.com, CNNMoney.com, 6/13/08) ^{6, 7}

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. A triangle has sides of 13, 18 and 31 inches. What is its area?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: An algae growth in a pond doubles in size each day. In 28 days, it will cover the entire pond. In how many days will the pond be half-covered?

Answer: 27 days.

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These views are those of Peter Montoya Inc., and not Gary Hokin and/or Nikoh Securities Corporation, 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. Please consult Gary Hokin at (847) 559-1002 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 cbsnews.com/stories/2008/06/12/business/main4176033.shtml           [6/13/08]

² money.cnn.com/2008/06/13/markets/markets_newyork/index.htm?postversion=2008061316                            [6/13/08]

³ bloomberg.com/apps/news?pid=20601012&sid=aOoYOT0Y6WsE&refer=commodities              [6/13/08]

⁴ usatoday.com/money/economy/housing/2008-06-13-foreclosures-rise_N.htm                       [6/13/08]

⁵ cnbc.com/id/25147036                      [6/13/08]

⁶ usatoday.com/money/default.htm  [6/13/08]

⁷ money.cnn.com/quote/historical/historical.html?pg=hi&close_date=6%2F13%2F07&mode=add&symb=DJIA      [6/13/08]

⁷ money.cnn.com/quote/historical/historical.html?pg=hi&close_date=6%2F13%2F03&mode=add&symb=DJIA      [6/13/08]

⁷ money.cnn.com/quote/historical/historical.html?pg=hi&close_date=6%2F13%9F07&mode=add&symb=NASDAQ                                [6/13/08]

⁷ money.cnn.com/quote/historical/historical.html?pg=hi&close_date=6%2F13%2F03&mode=add&symb=NASDAQ                                [6/13/08]

⁷ money.cnn.com/quote/historical/historical.html?pg=hi&close_date=6%2F13%2F07&mode=add&symb=SPX        [6/13/08]

⁷ money.cnn.com/quote/historical/historical.html?pg=hi&close_date=6%2F13%2F03&mode=add&symb=SPX        [6/13/08]