Comments on previous post of 3/4/2011:

Oil prices did indeed continue to rise jumping about 7% in a month.  As the ECB increased its overnight lending rates the dollar went from $1.39 to $1.44 against the Euro, a drop of 3.4%.

Comments on the economy:

Right now, the economy is slowing down its recovery as high commodities and energy prices sap the US consumer’s ability to spend. The US is likely to continue to grow but at a tepid rate as the IMF suggested by decreasing its growth projection for the US economy.

The slower economic growth and the resolution of tensions in the Middle East will definitely give us a temporary break in energy prices.

The lower growth rate will make the second and third quarter frustrating for investors because of a lack of direction in financial markets. This week’s economic data (CPI, PPI, Retail Sales, Capacity Utilization, etc.) as well as earning reports will give us an idea of the damage to the recovery caused by higher energy prices.

Comment on your personal economy:

April is Tax Management Month at Timbuktu Capital Management, LLC. We will review tax filings for our clients to find ways to reduce taxes for next year. Implementing strategies such as contribution to retirement plans, funding for an education plan, and other specific methods can help lower the tax bill for next year. Now is the time to review or build your financial for 2011 and beyond.