The numbers say 2005 should be a very good year

Down in the dumps over the sluggish market? Perk up.

Since 1900, the Dow Jones Industrial Average has increased an average of 11 percent between June and December in presidential election years. And, as Dan Sullivan points out in the July 1 issue of The Chartist, “In the 13 election years since 1952, the stock market has risen 12 times during the last seven months of the year.”

If that bit of seasonal history sounds good, here’s better: Based on the decennial, or 10-year, cycle, “the fifth year of a decade has been extraordinary,” writes Sullivan in his newsletter.

Actually, he’s understating the case. The Stock Traders Almanac looked at the 12 decades since 1881-1890 and found that the Dow rose in each and every year ending in a five (a record matched by no other digit; in second place were years ending in “8,” which produced increases 10 times). More remarkable, the average gain in years ending in “5” was a stunning 31 percent. The final bit of numerology is that the year ending in “5” was the best year of the entire decade in six of the 12 such periods since 1881 and ranked second in another three of the decades.

Here’s the big question: Is all of this stuff a coincidence, or can you bet money on “5” coming up a winner once more in 2005? It’s hard to come up with a good explanation for such gloriously consistent quintessence; on the other hand, buy-and-hold investors are going to be owning their shares next year anyway.

Credit card gets personal

It’s not enough to carry an “affinity” credit card sporting the logo of your favorite team or alma mater. Now, you can carry a Visa card that’s made up of your favorite personal photo.

The “One of a Card Visa” is being offered by First National Bank of Omaha. The bank claims the card is the first in the U.S. to carry a full-size photo, rather than an image that’s just a tiny box on the card. New or current customers of the bank can take part.

First National Bank of Omaha says the process is simple: the customer uploads a photo onto a Web site, chooses borders or other enhancements, and submits the design (and a credit application if they’re a new customer). Copyrighted or naughty images will be rejected.

Fees vary, as do the interest rates the cards carry, depending on the “rewards” the customer chooses, the bank says. In general, however, customers can get their first photo card at no charge, and can change those images a limited number of times in the course of a year. For more information, see www.oneofacard.com.

Second houses carry extra costs

More people are buying a second house, not only to have a place to get away but also as an investment.

Americans own 5.1 million vacation homes, reports the National Association of Realtors. That figure includes 445,000 purchased last year.

People buy second homes for various reasons: as a real estate investment, to have a place to retire or as a way to take vacations without paying high rental prices. For others, it’s all three, plus a way to make extra cash by renting the home out to other vacationers.

But before you buy a second home, here are some costs to factor in, according to Kiplinger’s Personal Finance.

Insurance rates tend to be about 20 percent higher than those on your first home. And if you plan to rent out the home, expect to pay even more for liability insurance.

Mortgage and loan rates also tend to be higher than those on your first home, and lenders may ask that you make a down payment of 20 percent to 35 percent.

Whether you keep the home for your own use or rent it out, remember that you’ll need to maintain the property. That can be difficult if you live far away, so you may need to hire a property manager. Your renters also may ask for specific features such as DVD players or high-tech kitchens, so be prepared to pay for the “extras” that attract renters.