[IMAGE]  Market  Insight for November 26, 2001  From    [IMAGE]    The  Global Online Financial Services Firm   Introducing  Goldman Sachs PrimeAccesssm Research  As a TD Waterhouse customer,  you now have online access to Goldman Sachs PrimeAccesssm  Research. Just login at tdwaterhouse.com ,  click on 'News & Research', and then on 'Goldman Sachs'.   We  See Upswing Continuing   By Arnie Kaufman, Editor, The Outlook   Selective  accumulation remains in order.  The  early stages of recoveries from bear markets vary widely in degree.  As time passes, however, deviations from the norm become far less  dramatic.   Through  last Wednesday, when we went to press early because of the holiday,  31% of the bear market loss from March 27, 2000 to September 21,  2001 had been recaptured. That's about average for rebounds in  the postwar period. As shown in the table at the bottom right  of this week's edition of The Outlook, at the two-month point  in the recoveries from the nine former bear markets since World  War II, the S&P 500 had won back an average of 33% of the  bear market loss.   In  each of the nine instances, the gain at the end of six months  was greater than that after two months and the gain at the end  of 12 months was greater than that after six months. On average,  nearly two-thirds of the bear market loss was recovered after  six months and almost all of the bear market loss was recouped  in a year.  Economic  and corporate news will remain bad for a while, but that's typically  the case in the early part of a bull market that is associated  with an economic recession. Stock prices start recovering well  before the headlines improve. The September upturn in stocks would  be consistent with the start of an economic expansion in the first  quarter of next year.   While  P/E ratios currently are high, that won't necessarily keep the  bull market from progressing. The preceding economic expansion  was the longest in history and gave rise to "new era"  optimism. Corporations, especially in information technology,  built production and sales capacity to levels far greater than  proved justified. Those excesses are now being corrected, painfully.  Corporate earnings are in a severe contraction. Once the economy  begins to grow again, however, profits will rebound and P/Es will  start looking much more reasonable. Low inflation, low interest  rates, rapid technological innovation and above-average productivity  growth should help support elevated stock valuations.   As  a TD Waterhouse customer, you can view a complete copy of S&P's  The Outlook (a $298 value) for FREE. Just select 'News &  Research' when you login  to yourTD Waterhouse account . The Outlook is available under 'Other  Reports.'    Why  You Should Consider a Margin Account  When you add margin borrowing features to your account,  you've got a lot of possibilities. While margin involves risk, it  also can provide greater investing flexibility, a source of low-cost  borrowing and a form of "overdraft protection." Click  here to learn more .  Add  Margin Privileges to your Account .        Your feedback is important to us! Email us with any questions or  comments at eServices@tdwaterhouse.com       TD  Waterhouse Investor Services, Inc. Member NYSE/SIPC.  Access  to services and your account may be affected by market conditions,  system performance or for other reasons. Under no circumstances should the information  herein be construed as a recommendation, offer to sell or solicitation  of an offer to buy a particular security. The article and opinions  herein are obtained from unaffiliated third parties and are provided  for informational purposes only. While the information is deemed  reliable, TD Waterhouse cannot guarantee its accuracy, completeness  or suitability for any purpose and makes no warranties with regard  to the results to be obtained from its use.   To unsubscribe  from this email, login to  your account  and select "My Account' then 'My Info'. Or email us at eServices@tdwaterhouse.com