State Employees’ Retirement Fund Market Value Altimeter

May 2004

Valuation
Date
Market Value
(in billions)
3/21/2004 $9.496
2/29/2004 $9.520
1/31/2004 $9.420
12/31/2003 $9.369
11/30/2003 $9.107
10/31/2003 $9.073
9/30/2003 $8.857
6/30/2003 $8.707
3/31/2003 $8.181
12/31/2002 $8.537
12/31/2001 $9.914
12/31/2000 $10.890
12/31/1999 $11.055
12/31/1995 $6.595
12/31/1990 $3.935

The above forecast to date in the main appears to be right on the money. Two of the most notable happenings are the recent increase in gasoline at the pumps and the war in Iraq. The immediate future in both instances does not look good.

Observations, Facts and Assumptions

State retirees who complain and grumble regarding their second class status as forgotten citizens have a perfect right to their thoughts. However, we are witnessing here in Michigan those affected by factory layoffs, and companies that are either going bankrupt or eliminating workers with the intent of closing shop and having their products made elsewhere, i.e. Mexico, China, etc. Those individuals out of work may be in worse economic condition than some state retirees particularly those with families to support. Remember the person who felt sorry for himself because he had no shoes until he met the person who had no feet. Now don’t you feel better. Of course a little recognition in our pension envelopes would be appreciated every ten years or so. (None since January 1, 1988)

History shows an economy grows better during a war. This fact, and companies that have stripped their personnel to lean and mean after multiple rounds of layoffs, leave presumably the best and brightest. These individuals are also highly motivated to work, lest they be next on the chopping block. A culmination of these circumstances is that many corporations are making money--lots of money. This is all a bit of irony. You are either in the bucks or out in the street begging. I met a state retiree on the street the other day asking for a handout. I said the only money I had was a l00 dollar bill. He said that’s okay, I have change! Humor.

For those interested, April is the best Dow month with average gains ofl.9% since 1950 and 2.2% over the last 33 years. April 1999 was the first and only month so far to gain 1000 Dow points. The month has showed NASDAQ and the S& P 500 with gains as well. April has been known, however, to take a big hit during a bear market. And on the other hand. ..I met another state retiree the other day; he told me he retired with nothing and he still has most of it.

Did You Know
  1. In 1913 Gideon Sunbach received a patent for the zipper.
  2. Spam was created in 1937 by Hormel Foods.
  3. The Mona Lisa has no eyebrows because it was the fashion in Renaissance Florence to shave them off.
Ponder This
  1. Gas prices are crazy. It’s getting so bad that the Amish are now complaining. — David Letterman
  2. No matter how you cut it Pi will never come out even.
  3. There is no substitute for integrity.
  4. Last year, America transferred a net 124 billion dollars to China’s exporters money they can use for expansion or buy up U .S. assets.
Reminder

May 31 this year will be observed as Memorial Day. It was started in 1868 to honor Civil War Veterans. It was General John A. Logan, the Commander-in-Chief of the Grand Army of the Republic who established Memorial Day. Logan street, running north and south through the city of Lansing, was named after the General. The artery was changed to Martin Luther King Highway several years ago. Memorial Day now is observed in memory of deceased veterans of all U .S. wars in which our country has been a part of involvement.

The National World War II Memorial site in Washington DC honoring the 16 million U.S. men and women who served during World War II opened to the public on April 29, 2004. The dedication ceremony was on May 29, 2004. There are currently 4.4 million of us left dying at a rate of 1,056 each day. Service members during World War II numbered 16.1 million.

Commentary

I wish to thank those that sent card and well during my convalescing after having a right hip replacement on April 14, 2004. I appear to be doing well and expect to be back to normal (even better) within 3 months.

Editor’s note: Al Trierweiter is a former President of the Lansing SERA Chapter, former Chairman of the Michigan SERA Coordinating Council, former Legislative Representative for both the Lansing Chapter and the SERA Council. AI may be reached at 6440 Old River Trail, Lansing 48917; phone 321-0041.

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