Sage Advice Quarterly Market Review 4Q2005

It will be months before the full economic effects of Hurricanes Katrina and Rita are sorted out, but the early signs for the economy are encouraging. As expected, about 200,000 workers in the Gulf Coast region lost their jobs in September, and the latest count puts displaced workers over the half-million mark. The storms’ shock, and the government’s slow initial response, have sent consumer confidence plummeting and energy prices soaring. But the broader economy appears to be holding up well. Indeed, outside of the Gulf Coast, more jobs were created in September than expected, and consumers – despite higher energy bills and sinking confidence – kept their wallets open, stepping up spending on most everything except gas-guzzling autos.