11/29/07

Economics

protectionism (Free trade is a major positive for world and US economic growth.).

http://www.realclearmarkets.com/articles/2007/11/free_trade_and_the_rattling_of.html

Stop worrying about the weak dollar:

http://article.nationalreview.com/?q=NjJmYmM3YWFhMzkxNzRhYjU3N2Y3ZTMzZmI2ZGYzN2E=

Politics

Domestic

International War Against Radical Islam

Thoughts on the Annapolis ‘peace’ conference:

http://article.nationalreview.com/?q=OWE1YTBmMzM2ZTY2ZjU5ODEyNWY5ZTY0NDMyMDQ1N2Q=

The Market

Technical

Fundamental

In a matter of two days the DJIA has returned to Fair Value, though the S&P remains about 4% undervalued. Again most to the difference lies in the performance of the financial sector which has a much higher percentage representation in the S&P than the DJIA.

One result of the rise in stock prices is that a number of the stocks on our Buy Lists have risen above the upper boundary of their respective Buy Value Ranges and are being Removed from those Buy Lists. Included in this list are:

On the Dividend Growth Buy List:

Bank of Nova Scotia (BNS-$53). The Dividend Growth Portfolio had owned BNS for some time and no additional shares were bought when it was recently re-Added to the Dividend Growth Buy List.

Genuine Parts (GPC-$49) which the Dividend Growth Portfolio never Bought.

On the High Yield Buy List:

Reynolds American (RAI-$67) The High Yield Portfolio had owned RAI for some time and no additional shares were bought when it was recently re-Added to the High Yield Buy List.

On the Aggressive Growth Portfolio:

Best Buy (BBY-$51) which the Aggressive Growth Portfolio never Bought

However, we continue to average into new positions, especially financial related stocks which have been beaten down harder than other sectors.

On the Market open this morning, the Dividend Growth Portfolio will purchase additional shares (approximately 20%) in American International Group (AIG-$57) and Paychex (PAYX-$39). In the Aggressive Growth Portfolio, one quarter additional positions will be bought in UnitedHealth Group (UNH-$54) and Accenture Ltd (ACN-$35).

The High Yield Buy List

Company Close 11/28 Buy Value Range

US Bancorp $32.59 $29-33

Kinder Morgan Ptrs 50.64 51-58

Plains All American 50.69 51-58

Penn Virginia Resources 26.00 23-26

Buckeye Pipeline 50.31 47-52

News on Stocks in Our Portfolios

More Cash in Investors’ Hands