The stock market sprang back a bit this spring in April and earlier in May.
And while the market gave back those gains at the end of May, we're still
positive about prospects for the rest of 2001. Here's how things look for
the year and recent month:

	6/1/00	1/2/01	5/1/01	5/31/01	% chg.
Yr.	% chg.
YTD	% chg.
May '01
Dow Jones	10,652	10,787	10,898	10,912	2%	1%	0%
S&P 500	1,449	1,320	1,266	1,256	-13%	-5%	-1%
Nasdaq	3,582	2,471	2,168	2,110	-41%	-15%	-3%
* does not include reinvested dividends

Dan Laufenberg, American Express Financial Corporation's chief economist,
says investors have several reasons to be optimistic long term. These
include:

*	Continued interest rate cuts - The Federal Reserve cut rates yet
another half a percent in May, for a total reduction of 2.50% so far this
year. Historically, such cuts have taken a few months to affect the economy
and market - but the eventual result has often been a substantial upturn for
both.

*	Newly passed tax cuts - Congress has passed a $1.35 trillion,
wide-ranging tax-cut package that should put extra dollars into U.S.
consumers' pockets soon. That, in turn, could eventually boost corporate
profits and stock prices.

*	Signs of a strengthening economy - The upturn in stocks this spring,
continued rate cuts and the prospect of lower taxes all helped boost
consumer confidence in May. The New York-based Conference Board said its
Consumer Confidence Index jumped in May to 115.5 from 109.9 - more than
economists expected. The rise in confidence is important since consumers are
a major driver of the U.S. economy.

Dan Laufenberg says these positive developments support his forecast of
stronger economic growth - and potential stock market improvement - through
the rest of the year. However, he adds that the economy remains vulnerable
and volatility could continue, so a long-term investment focus is best.

I'll keep you informed as economic and market developments continue. Thank
you for your loyalty and understanding as we ride out this market
correction.

Best regards,








"Make all you can, save all you can, give all you can."

                                                       John Wesley

Byron W. Ellis, CFPTM, CLU, ChFC
Senior Financial Advisor
American Express Financial Advisors
IDS Life Insurance Company
1450 Lake Robbins Drive
Suite 100
The Woodlands, TX  77380

Phone	281.367.8658
Fax	281.364.9628
E mail	byronellis@usa.net


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