My intentions were not to lose you 30%. If you look at the trail of unrelated
events that unfolded over the last 2 years it is
easy to understand why the mkts have done so badly. This however does not help
people's frustration over the way the markets have performed over the last 2
yrs.

LOOKING BACK (1999-2001)



1. Y2K-	$ spent on technology
                   Gov~t allowed free flow of  money into system


2. DOT COM EXPLOSION-overvalued companies-3-4x- no value-no substance


3. SEPT. 2000- MIDDLE EAST NON-EVENT THREAT of WAR


4. MEDIA- OCT. 1987- comparing today to 1987-self fulfilling prophecy


5.  SOLID TECH COMPANIES 3Q earnings off due to Y2K slow downs


6.   U.S. PRESIDENTIAL ELECTION


7.   ENERGY CRISIS- led to low retail sales


8.  DEC. 2001 RETAIL SALES DECREASED- worst in 17 years


 9.MEDIA HYPE RE: RECESSION- businesses quit spending


10. SEPT. 11/02- panic, emotions run rapid, sell- drives mkt lower


11. ENRON SCANDAL


LOOKING AHEAD (2002)



DECREASED INTEREST RATES- 12 months to see effects- lowest in 40+ yrs
DECREASED INFLATION
DECREASED INVENTORIES & STAFF
ENCOURAGING GOVERNMENT FISCAL POLICY
IMPROVING CONSUMER CONFIDENCE
HISTORICAL RECORDS OF MARKET REBOUNDING

I just want to reposition  some funds you now own so going forward you will
better opportunity for gain.


I personally feel if we have another bad year like the last year you will see
massive layoffs and bankruptcies. In those going broke will be the banks.


bmg