August 2008

07/31/08

S&P500	1267
DJIA	11378
10-yr Tsy	102.50%

• August 2008 Comments - Rebates and Realty, Which Prevails?
• This Month's Focus - Fannie Mae and Freddie Mac

July 2008

06/30/08

S&P500	1280
DJIA	11350
5-yr Tsy	102.20%

• July 2008 Comments- The Difference A Month Makes
• This Month's Fixed Income Focus

June 2008

• June 2008 Comments- End of The Spring Thaw?
• Political Resolution or More Uncertainty
• This Month's Fixed Income Focus - Cross- Currents in the Bond Market

May 2008

• May 2008 Comments- The Check is in the Mail
• Stock Market Rally- Bear Trap or New Bull Market
• Inflation Trends Bear Watching
• This Month's Focus - Mixed Data for April, Bond Market Conundrum, and Increasing Budget Deficit

April 2008

03/31/08

S&P500	1323
DJIA	12263
5-yr Tsy	2.43%

• April 2008 Comments- A Month for the Record Books
• Is the End in Sight
• Beacon Investment Strategy
• This month's Focus-"Unprecedented" Fed Response, Proposed Regulatory Overhaul and Fixed Income Perspective

March 2008

02/28/08

S&P500	1331
DJIA	12266
10-yr Tsy	105.91

• March 2008 Comments- Political Sideshow Offers Limited Economic Solutions
• Economy Continues to Suffer From Asset Based Deterioration
• This Month's Focus - Municipal Bonds, Treasury Yield Curve and the Federal Reserve

February 2008

01/31/08

S&P500	1379
DJIA	12650
10-yr Tsy	3.60 %

• February 2008 Comments- Interest Rate Cuts & Fiscal Stimulus. Is It Enough?
• Federal Reserve Asleep At The Switch?
• Are Interest Rate Reductions and Fiscal Stimulus The Answer?
• This Month's Focus - The Federal Reserve's Easing Moves in Perspective

January 2008

12/31/07

S&P500	1479
DJIA	13366
10-yr Tsy	4.10 %

• January 2008 Comments- Home Price Erosion Still Impacting The Economy
• Equity Market Outlook - Equity Prices Will Lead The Recovery
• This Month's Focus - An Update On Municipal Bond Insurance

December 2007

11/31/07

S&P500	1481
DJIA	13372
10-yr Tsy	3.94 %

• December 2007 Comments- More Turmoil Related to Reality
• Equity Market Outlook - More Pressure From Economic Concerns
• This Month's Focus - Fixed Income Potpourri

November 2007

10/31/07

S&P500	1549
DJIA	13930
10-yr Tsy	4.47 %

• November 2007 Comments- Federal Reserve to the Rescue?
• Equity Market Outlook - Volatility Growing As Concerns Mount
• This Month's Focus - Dollar Weakness Favorable or Unfavorable for the US Economy?

October 2007

09/28//07

S&P500	1527
DJIA	13896
10-yr Tsy	4.59 %

• October 2007 Comments- Tentative Signs of a Rebound, But Can It Last?
• Economic Outlook - Federal Reserve Blinks
• Equity Market Outlook - Low, Low, Low Expectations, But....
• This Month's Focus - What's the Fed Likely To Do Next?

September 2007

08/31/07

S&P500	1474
DJIA	13358
10-yr Tsy	4.62 %

• September 2007 Comments- It's Official, Stock Market Corrects
• Economic Outlook - Still Growing But at a Slower Pace
• Financial Market Outlook - Earnings Growth Slowing But Still Strong
• This Month's Focus - Foreign Ownership of U.S. Treasuries (Data Are As of March 31, 2007)

August 2007

07/31/07

S&P500	1455
DJIA	13212
10-yr Tsy	4.77 %

• July 2007 Comments- Another Summer Swoon
• Economic Outlook - Fed receives Some Good News
• Financial Market Outlook - Strong Earnings Overshadowed By Subprime Fears
• This Month's Focus - Dr. Ben Bernanke, Chairman of the Federal Reserve System

July 2007

06/29/07

S&P500	1503
DJIA	13409
10-yr Tsy	5.03 %

• July 2007 Comments- Rising Rates Cause Volatility To Return To Stock Market
• Economic Outlook - Fed Still Sees Greater Risk From Inflation
• Financial Market Outlook - Earnings Reports The Next Market Signpost
• This Month's Focus - Corporate Bonds

June 2007

05/31/07

S&P500	1531
DJIA	13628
10-yr Tsy	4.89 %

• June 2007 Comments- Stocks Climb A Wall Of Worry To A New Closing High
• Economic Outlook - Fed Seeks To Earn Credibility With Focus On Inflation
• Financial Market Outlook - Investors Focus On Economic Outlook
• This Month's Focus - The Federal Budget

May 2007

04/31/07

S&P500	1482
DJIA	13063
10-yr Tsy	4.63 %

• May 2007 Comments- Strong Earnings And Liquidity Propel Market Higher
• Economic Outlook - US Economic Growth Slows
• Financial Market Outlook - Stocks Remain Supported By Fundamentals
• This Month's Focus - The Employment Picture

April 2007

03/31/07

S&P500	1421
DJIA	12354
10-yr Tsy	4.65 %

• April 2007 Comments- Subprime Mortgage Worries Resurface Towards Month End
• Economic Outlook - Continued Strong Employment Remains Key
• Financial Market Outlook - Stocks In Trading Range Until Clarity On Housing Emerges
• This Month's Focus - Subprime Mortgages

March 2007

02/28/07

S&P500	1407
DJIA	12269
10-yr Tsy	4.57 %

• March 2007 Comments- China Rout Leads Stocks Down Worldwide
• Economic Outlook - GDP Indicates Growth Is Slowing But Consumer Still Supportive
• Financial Market Outlook - Where Do We Go From Here?
• This Month's Focus - Taxable Fixed Income

February 2007

01/31/07

S&P500	1438
DJIA	12622
10-yr Tsy	4.81 %

• February 2007 Comments- Solid Start to 2007 Despite Lack of Clarity
• Economic Outlook - Growth Remains Solid, Inflation Moderates
• Financial Market Outlook - Investors Complacent About Earnings Growth?
• This Month's Focus - The Rebirth Of Dividends

January 2007

12/30/06

S&P500	1418
DJIA	12463
10-yr Tsy	4.70 %

• January 2007 Comments- Ending 2006 On Higher Ground
• Economic Outlook - Housing On the Mend?
• Financial Market Outlook - Easing Into The New Year
• This Month's Focus - Is Fed Easing Good For Stocks?

December 2006

11/30/06

S&P500	1401
DJIA	12222
10-yr Tsy	4.46 %

• December 2006 Comments- Solid Month Amid Increased Volatility
• Economic Outlook - Rising Inventories Reflect Slowing Demand and Production
• Financial Market Outlook - Continued Strong Corporate Profits Remain Key
• This Month's Focus - Democrats Take Control of The House and Senate

November 2006

10/31/06

S&P500	1378
DJIA	12081
10-yr Tsy	4.60 %

• November 2006 Comments- Earnings Still Solid But Guidance is Mixed
• Economic Outlook - Third Quarter Real GDP Confirms Housing-Led Slowdown
• Financial Market Outlook - Fourth Quarter Rally to Roll On?
• This Month's Focus - Large-Caps Finally Flexing Some Muscle

October 2006

9/29/06

S&P500	1336
DJIA	11679
10-yr Tsy	4.63 %

• October 2006 Comments- Stocks End the Month and Quarter on a High Note
• Economic Outlook - Housing's Impact By the Numbers
• Financial Market Outlook - S&P Earnings Growth Still Strong But Decelerating
• This Month's Focus - Private Equity Firms Are Turning to the Tech Sector for Buyouts

September 2006

08/31/06

S&P500	1304
DJIA	11381
10-yr Tsy	4.73 %

• September 2006 Comments -Finally a Good Month for Stocks
• Economic Outlook - Housing and the Consumer, Perfect Together?
• Financial Market Outlook -September & October - Spooky for Stocks?
• This Month's Focus - Record Buybacks Boost Earnings Per Share

August 2006

07/31/06

S&P500	1277
DJIA	11186
10-yr Tsy	4.98 %

• August 2006 Comments -A Consumer-Led Slowdown
• Economic Outlook - More of the Same
• Financial Market Outlook - Large-Caps Look Relatively Cheap
• This Month's Focus - What the NASDAQ Is Telling Us, Technically-Speaking

July 2006

06/30/06

S&P500	1270
DJIA	11150
10-yr Tsy	5.15 %

• July 2006 Comments -The FOMC Strikes Again, But the End Could Be Near
• Economic Outlook - Softness is Evident
• Financial Market Outlook - The Summer Doldrums?
• This Month's Focus - Record M&A Deals Aim to Increase Shareholder Value

June 2006

05/31/06

S&P500	1270
DJIA	11168
10-yr Tsy	5.12 %

• May 2006 Comments -The Market's Wall of Worry
• Economic Outlook - Oil and Housing Should Slow Growth
• Financial Market Outlook - A "Soft Landing" Is Good For Stocks
• This Month's Focus - What is a Market Correction?

May 2006

04/28/06

S&P500	1311
DJIA	11367
10-yr Tsy	5.05 %

• April 2006 Comments -Interest Rate Fears Keep Stocks Range Bound
• Economic Outlook - Surprising Strength
• Financial Market Outlook - Accentuate the Positive
• This Month's Focus - Where Should I Invest Today?

April 2006

03/31/06

S&P500	1295
DJIA	11109
10-yr Tsy	4.85 %

• March 2006 Comments - Strong Quarter for Stocks
• Economic Outlook - Balancing Act for the Fed
• Financial Market Outlook - We've Come a Long Way
• This Month's Focus - Which Portfolio is Right for Me?

March 2006

02/28/06

S&P500	1281
DJIA	10993
10-yr Tsy	4.55 %

• February 2006 Comments - Focus on the Red
• Economic Outlook - Consumer Still Strong
• Financial Market Outlook - Favor Stocks on Balance
• This Month's Focus - The Inverted Yield Curve

February 2006

01/31/06

S&P500	1280
DJIA	10865
10-yr Tsy	4.52 %

• January 2006 Comments - Mr. Greenspan's Tenure Ends
• Economic Outlook - The Economy Continues to Grow, Albeit at a Slower Pace
• Financial Market Outlook - Domestic and International Corporate Profits Strong
• This Month's Focus - Domestic Economic Indicators

January 2006

12/30/05

S&P500	1248
DJIA	10718
10-yr Tsy	4.39 %

• December 2005 Comments - Corporate Balance Sheets Healthier than Consumers
• Economic Outlook - The End of Overnight Interest Rate Hikes is Near
• Financial Market Outlook -SEC Reviews Hedge Funds. Money Market Rates Rising
• This Month's Focus - Exchange Traded Funds (ETFs)

December 2005

11/30/05

S&P500	12049
DJIA	10806
10-yr Tsy	4.49 %

• November 2005 Comments - Energy Prices Fall, Consumer Sentiment & Markets Rise
• Economic Outlook - Overall Growth Despite Pockets of Weakness
• Financial Market Outlook -Record Corporate Profits Favor Stocks
• This Month's Focus - Areas Benefiting from Rising Interest Rates

November 2005

10/31/05

S&P500	1207.01
DJIA	10440.01
10-yr Tsy	4.55 %

• October 2005 Comments - Rising Interest Rates, Profit Reports, Hurricane Excuses
• Economic Outlook - Greenspan's Replacement, Storm Recovery, Lower Gas Prices
• Financial Market Outlook -Interest Rates Rise, Strong Corporate Profits
• This Month's Focus - Classes of Investments & Long Term Outlook

October 2005

09/31/05

S&P500	1228.81
DJIA	10538.00
10-yr Tsy	4.33 %

• September 2005 Comment - In Spite of Hurricanes, Inflation Fears Rise
• Economic Outlook - Hurricane Season, Short & Long-Term Effects
• Financial Market Outlook - Late Cyclicals and Defensive Stocks Should Outperform
• This Month's Focus - Know Your Investment Objectives and Restraints

September 2005

08/31/05

S&P500	1220.33
DJIA	10481.60
10-yr Tsy	4.02 %

• August 2005 Comment - Strong Economy, Rising Interest Rates & High Energy Prices
• Economic Outlook - Continued Global Growth At Varied Rates
• Financial Market Outlook - Phase of Economic Cycle Favors Consistent Performing Company Stocks and Short Duration Bonds
• This Month's Focus - Investment Style, Growth vs. Income, Size & Duration

August 2005

07/29/05

S&P500	1234.18
DJIA	10640.90
10-yr Tsy	4.28 %

• July 2005 Comment - Strong Economy, Surging Stocks & Rising Interest Rates
• Economic Outlook - Decelerating US Growth. New Legislation May Cause Bumps
• Financial Market Outlook - Continued Economic Growth Results in Higher Stock Prices and Higher Interest Rates
• This Month's Focus - China's Currency Revaluation and Its Implications

July 2005

06/30/05

S&P500	1191.33
DJIA	10275.00
10-yr Tsy	3.92 %

• June 2005 Comments... Stocks Volatile..Bond Rates Remain Low
• Economic Outlook... Economy Signals Mixed... Part of European In Recession With Unemployment High... Tough Year Ahead For Labor
• Fixed Income Outlook...Consumer and Producer Prices Down... More Regulations Tightening Mortgage Credit... Energy & Highway Legislation
• Stock Market Outlook... Industry Appeal Varies Widely... Large Caps Favored

June 2005

05/31/05

S&P500	1230.60
DJIA	10766.20
10-yr Tsy	4.38 %

• May 2005 Comments... Stocks Trade Higher..Early Stages Of A New Consensus View?
• Economic Outlook... Mixed Economy Signals... Payroll Employment Up... European Growth Slowing... Tough Year Ahead For Labor
• Fixed Income Outlook...Consumer and Producer Prices Move Higher... More Regulations Tightening Mortgage Credit
• Stock Market Outlook... Industry Appeal Varies Widely... Large Caps Favored

May 2005

04/29/05

S&P500	1156.85
DJIA	10192.50
10-yr Tsy	4.20 %

• April 2005 Comments...Stocks Trade Lower..Early Stages Of A New Consensus
• Economic Outlook...Oil Continues To Weigh On The Global Economy...Unemployment Trends A Bright Spot In U.S.
• Fixed Income Outlook... Prices Surge At Consumer Level...Employment Cost Data Positive... Productivity Improves
• Stock Market Outlook...What We Look For...Sector Appeal

April 2005

03/31/05

S&P500	1180.59
DJIA	10503.80
10-yr Tsy	4.48 %

• March 2005 Comments...Oil Prices Reach $57 Per Barrel...Interest Rates Continue To Rise...Commodity Prices At Highs
• Economic Outlook...A Deceleration...Unemployment Falls...Capex Strong
• Fixed Income Outlook... Fed Raises Rates ...Inflation Perks Up
• Stock Market Outlook...Major Sector Differences...Stay Defensive... Too Early To Bargain-Hunt

March 2005

02/28/05

S&P500	1203.60
DJIA	10766.20
10-yr Tsy	4.38 %

• February 2005 Comments...Stock Prices Advance...Bonds Weaken...Growth Accelerates
• Economic Outlook...U.S. Growth to Accelerate...Spring Employment Gains...Progress on Structural Reform
• Fixed Income Outlook...Inflation Moves Higher...Fed Set to Raise Rates Again in March...Oil Prices Close to Highs
• Stock Market Outlook...Leadership Continues to Shift...Bigger Remains Better

February 2005

01/31/05

S&P500	1181.27
DJIA	10489.90
10-yr Tsy	4.13 %

• January 2005 Comments...Stock Prices Decline...Bonds Stable...Weather Prompts Energy Rise...Iraqi Elections Successful
• Economic Outlook...Global Growth Slowdown...2004 GDP Growth To Be Revised Up...Payroll Gains As Expected
• Fixed Income Outlook...Expect Further Fed Rate Hikes...Import Prices Up...Consumer And Producer Prices Edge Higher
• Stock Market Outlook...Leadership Continues to Shift...Bigger is Better

January 2005

12/31/04

S&P500	1211.92
DJIA	10783.00
10-yr Tsy	4.22 %

• December 2004 Comments...Stocks Close Higher...Bonds Stable...Shifts Underway
• Economic Outlook...Global Growth Slowing...Consumer Spending is Job-Dependent...Capex Will Drive 2005
• Fixed Income Outlook...Fed Raises Rates...Import Prices Rise...Federal Budget Deficit Narrows...Commercial And Producer Prices Rise
• Stock Market Outlook...Leadership Changes...Cost Controls vs. Revenue Growth...Exports vs.Imports

December 2004

11/30/04

S&P500	1173.82
DJIA	10428.00
10-yr Tsy	4.35%

• November 2004 Comments...Stocks Rally Sharply...Bonds And Dollar Weaken...As Oil Falls And Gold Surges
• Economic Outlook...GDP Growth Improves...Jobs Growth Continues...Consumer Picture Mixed...Capex Remains Strong
• Fixed Income Outlook...Wage Inflation Moderates...Consumer Prices Stable...Producer Prices Jump...Further Rate Hikes Comingl
• Stock Market Outlook...Seasonal Factors Strong...Profit Margin Pressures Coming...Wage & Benefit Costs Moderating

November 2004

10/29/04

S&P500	1130.20
DJIA	10027.50
10-yr Tsy	4.03%

• October 2004 Comments...Energy Prices Surge...Elections Favor Republicans
• Economic Outlook...GDP Growth Slows...Oil Prices...Capex Strong...Consumer Sends Mixed Signals
• Fixed Income Outlook...Inflation Low...Many Commodity Prices Fall
• Stock Market Outlook...Earnings Season Positive...Seasonal Factors a Benefit

October 2004

09/30/04

S&P500	1114.58
DJIA	10080.30
10-yr Tsy	4.12%

• September 2004 Comments...Stocks Advance...Bonds Hold Their Ground...Weather, Energy, Elections And Employment Send Mixed Signals
• Economic Outlook...GDP Grows...Capex Leads...China Resumes Growth
• Fixed Income Outlook...Inflation Lower...Money Growth Slow...Bank Loans Strong...Consumers Resist Price Hikes
• Stock Market Outlook...Earnings Season Begins...Mutual Fund Tax Year Ends October 31...Focus On Earnings & Dividends...President Signs Tax-Cut Extension

September 2004

08/31/04

S&P500	1104.24
DJIA	10173.90
10-yr Tsy	4.12%

• August 2004 Comments...Stock Rise Slightly...Bonds Rally...Crosscurrents And Uncertainties Remain
• Economic Outlook...GDP Growth Slow...Consumer Confidence Weakens With Job Prospects...Corporate Cash Flow Very Strong
• Fixed Income Outlook...Prices Well-Behaved...Signs Of Lower Inflation...Productivity & Costs Favorable
• Stock Market Outlook...Leadership...Strength...Profitability & Growth...Characteristics And Attributes That Successful Stock Portfolios Should Employ

August 2004

07/31/04

S&P500	1101.72
DJIA	10139.70
10-yr Tsy	4.48%

• July 2004 Comments...Stock Weak...Bonds Little-Changed...Uncertainties Linger
• Economic Outlook...3% GDP Growth...Consumer Confidence Strong...Business Capital Spending Leads Growth
• Fixed Income Outlook...Bond Investors Positioned For Higher Rates
• Stock Market Outlook...Earnings Reports Strong...Capital Spending Upsurge...Sector Divergences

July 2004

06/30/04

S&P500	1140.84
DJIA	10435.50
10-yr Tsy	4.58%

• June 2004 Comments...Stocks Record A Modest Positive Move...Bonds Stabilize...Politics And Policy Take Center Stage
• Economic Outlook...Jobs Growth Continues...Consumer Spending Is Strong But Shifting...China Growth Slows...Capital Spending Strong
• Fixed Income Outlook...Inflation Picks Up...GDP Growth Slows
• Stock Market Outlook...Quality Is Alive & Well...Desirable Valuation Features...Sector Guide And Careful Stock-Picking

June 2004

05/31/04

S&P500	1125.21
DJIA	10268.51
10-yr Tsy	4.65%

• May 2004 Comments...Bonds Retreat...Stock Mixed...Mixed Major Trends
• Economic Outlook...Capital Spending Strong...Rising Prices In Many Sectors...Profit Margins At Record Highs
• Fixed Income Outlook...Most Inflation Measures Rising...Budget Deficit Drops...Mortgage Applications Fall
• Stock Market Outlook...Valuations Reasonable ...Global Growth Continues...Rates Will Rise, Not Rocket...Selection Is Key

May 2004

04/30/04

S&P500	1107.30
DJIA	10225.60
10-yr Tsy	4.51%

• April 2004 Comments...Economy Strong...Profits Soar...Interest Rate Worries
• Economic Outlook...Capital Spending Strong...Pricing Power...Consumer A Moderate Plus
• Fixed Income Outlook...Rising Rates Lie Ahead: How Far And How Fast?
• Stock Market Outlook...Strong Earnings Reports...Rate Fears...Possible Shifts in Leadership

April 2004

03/31/04

S&P500	1126.21
DJIA	1035.70
10-yr Tsy	3.84%

• March 2004 Comments...Stocks Consolidate Then Rally...Bonds Weaken As Jobs Increase
• Economic Outlook...Broad and Self-Sustaining Recovery...Capital Spending, Overseas Strength to Complement Jobs Growth
• Fixed Income Outlook...Jobs Report Pushes Rates Higher...Inflation Reports Still Benign...Commodity Prices Reflect Global Growth
• Stock Market Outlook...Pricing Power Returning To Select Sectors

March 2004

02/29/04

S&P500	1144.94
DJIA	10583.90
10-yr Tsy	3.97%

• February 2004 Comments … Stocks Move Up…Bonds Mark Time
• Economic Outlook...Employment Indicators Mixed…Presidential Campaign Affects Confidence…Corporate Profits Strong
• Fixed Income Outlook...Inflation Still Well-Behaved…Services Inflation… Commodity Prices Rise On Chinese Demand
• Stock Market Outlook...Shift Toward Global Competitors Underway…Valuation Favors Large Cap Growth…Dollar Weakness Favors Exporters

February 2004

01/31/04

S&P500	1131.13
DJIA	10488.10
10-yr Tsy	4.13%

• January 2004 Comments...Stocks Move Ahead...Bonds Hold Value
• Economic Outlook...News Remains Favorable...Payrolls Recovering Slowly...GDP Rise Moderate...Retail Sales Strong
• Fixed Income Outlook...Inflation Low And Dropping...Government Receipts Set To Rise...Trade Deficit To Narrow
• Stock Market Outlook...Transition To New Leadership...Sector Outlook

January 2004

12/31/03

S&P500	1111.92
DJIA	10453.90
10-yr Tsy	4.25%

• December 2003 Comments...Stocks Rise Steadily And Sharply...Bonds Encouraged By Fed Comments...Dollar Remains Weak
• Economic Outlook...Uniformly Favorable Data...Jobs Outlook Positive...Capital Outlays Rising
• Fixed Income Outlook...Fed Reserve Policy Remains On Hold...Inflation Still Low...Commercial And Industrial Loans Slow
• Stock Market Outlook...2004 Outlook - Expect Leadership To Change...Sector Outlook - Selectivity

December 2003

11/30/03

S&P500	1058.20
DJIA	9782.46
10-yr Tsy	4.33%

• November 2003 Comments...Stocks Consolidate Recent Gains...Bonds Trade Lower On Economic Strength
• Economic Outlook...GDP Revised Upward...Consumer Sentiment Improves...Jobless Claims Fall...Profits Surge
• Fixed Income Outlook...Interest Rates Expected To Rise In 2004...Inflation Remains Low...Administration Retreats From Protectionism...Weak Dollar Continues
• Stock Market Outlook...Raise Exposure To Capital Spending...Raise Exposure To Profit Recovery...Selectivity Is The Watchword In Financial Services

November 2003

10/31/03

S&P500	1050.71
DJIA	9801.12
10-yr Tsy	4.30%

• October 2003 Comments...Stocks Sharply Higher...Bonds Slip In Value...Economic Background Strengthens...Earnings & Dividends Do Indeed Matter
• Economic Outlook...Manufacturing Expands...Inventories Bare...Consumers Confident...Employment Outlook Improving
• Fixed Income Outlook...Inflation Remains Low...Federal Reserve Holds Rates Steady...Be Defensive
• Stock Market Outlook...Raise Exposure To Capital Spending...Raise Exposure To Cyclical Profit Growth...Defer Additional Defensive Investing

October 2003

09/30/03

S&P500	995.97
DJIA	9275.06
10-yr Tsy	3.94%

• September 2003 Comments...Stocks Push Upwards...Bonds Sell Off...Positive Payroll Growth...What Matters In The Months Ahead
• Economic Outlook...GDP Expands In Second Quarter...Current Quarter GDP Growth Of 5% Or More...Consumer Spending Rises
• Fixed Income Outlook...Rates To Stay Low Pending Jobs Growth...Inflation Remains Low...Government Spending Surges
• Stock Market Outlook...Earnings And Dividends Matter...Earnings Reporting Season Should Be Positive...Business Investment In Recovery Mode

September 2003

08/31/03

S&P500	1008.01
DJIA	9415.82
10-yr Tsy	4.47%

• August 2003 Comments...Stocks Resume Uptrend...Bonds Remain Weak...Economic Signals Encouraging
• Economic Outlook...Strong Retail Sales...Housing Moves Higher...Order Rates Move Up...Employment Trends Disappoint
• Fixed Income Outlook...Inflation Remains Low...Federal Reserve Leaves Rates Unchanged
• Stock Market Outlook...Rotational Market Interest...Stress Dividends And Quality...Earnings Reporting Season Ahead

August 2003

07/31/03

S&P500	990.31
DJIA	9233.80
10-yr Tsy	4.47%

• July 2003 Comments...Stocks Labor...Bonds Weak...Economic Indicators Positive
• Economic Outlook...Purchasing Managers Optimistic...Consumer Spending Strong...Employment Predication Mixed
• Fixed Income Outlook...Inflation Remains Subdued...Commodity Prices Surge...Mortgage Rates At Year's High
• Stock Market Outlook...Financial Services...Exporters...Brand Names...Energy

July 2003

06/30/03

S&P500	974.50
DJIA	8985.44
10-yr Tsy	3.52%

• June 2003 Comments...Stocks Strong...Bond Yields Rise...Markets Suggest Economic Rebound Is On Its Way
• Economic Outlook...Indicators Mostly Positive...Unemployment Rises...Leading Indicators Ahead Sharply
• Fixed Income Outlook...Fed Reduces Rates For 13th Time Since Early 2001...Wholesale Prices Down...Consumer Prices Show Some Upside
• Stock Market Outlook...Valuations Vary Widely...Insider Selling Rises...Sentiment Measures Suggest Pullback

June 2003

05/31/03

S&P500	963.59
DJIA	8850.26
10-yr Tsy	3.37%

• May 2003 Comments...Stocks Strong...Bonds To New Highs...Looking For Consistency
• Economic Outlook...Indicators Mixed...Mild Pickup Likely Over 2003
• Fixed Income Outlook...Inflation Muted....Corporate Profit Growth To Accelerate Modestly
• Stock Market Outlook...Reserves High...Buyers Testing The Water...Stock Selection Critical

May 2003

04/30/03

S&P500	916.92
DJIA	8480.09
10-yr Tsy	3.84%

• April 2003 Comments...Rapid And Successful War Effort...Positive Surprises Dominate Earnings Reports...Stocks Rall, Bonds Stabilize
• Economic Outlook...War And Weather Distortions Affect Data...Employment Data Still Poor...Sudden Acute Respiratory Syndrome(SARS) Impact Peaking
• Fixed Income Outlook...Mixed Signals From Price Data...Bonds Little Changed
• Stock Market Outlook...Valuations Reasonable...Earnings Growth Decent...Yields Low On Alternative Investments

April 2003

03/31/03

S&P500	848.18
DJIA	7992.13
10-yr Tsy	3.80%

• March 2003 Comments...Stocks RallyOn War News...Bonds Hold Value...Oil, Gold Lower, Dollar Rises
• Economic Outlook...Upcoming Data Distorted By War...Recent Data Distorted By Weather...Continue To Expect Mid-Year Recovery
• Fixed Income Outlook...Yields Remain At 40-Year Lows...Fed Leaves Rates Unchanged...Inflation Measures Rise
• Stock Market Outlook...Valuations At Historical Averages...Under-Funded Pension Plans...Reluctant Mutual Funds...Individuals Increase Savings

March 2003

02/28/03

S&P500	841.15
DJIA	7891.08
10-yr Tsy	3.69%

• February 2003 Comments...Stocks Drift Lower...Bonds Rally To New Highs...War Nears?
• Economic Outlook...Reports Mixed...Conflicting Readings On Consumer Confidence...GDP Report Suggests Turn In Capital Outlays
• Fixed Income Outlook...Fed To Consider Rates Again...Gold Stabilizes...Inflation Measures Rise
• Stock Market Outlook...Dividends Are Important...Diversification And Financial Strength...Service Economy...Demographics And China Impact

February 2003

01/31/03

S&P500	855.70
DJIA	8053.81
10-yr Tsy	3.96%

• January 2003 Comments...Stock Values Drop...Bonds Hold Steady...Investors Choices
• Economic Outlook...G