Although it may be hard to believe, there is more going on in the World than the NCAA Basketball Tournament. And even though it’s not the sports page, you will soon receive your March Brokerage Account statement(s).

Things change quickly on the financial hardwood too, and the All Time High Profit Levels we all experienced in December have been reduced a bit by two “corrective” forces. A correction is simply the “flip side” of a rally, and if you keep this in mind while you peer down from the grandstand at your (portfolio) coach on the sidelines, you'll understand why he's smiling broadly and rubbing his hands together in anticipation of bargain hunting in both the Fixed Income and the Equity Markets. It’s kind of like the player draft, isn’t it?

Issue Breadth on the New York Stock Exchange has turned decidedly negative this year, for the first time since March of 2003, and there have been a few too many whispers about inflation lately for Fixed Income securities to remain strong. Your account programs (statements) will reflect these opportunities by reporting a fall in your Market Value stats, but your Working Capital totals continue to rise every day. My opinion is that this is a routine and temporary market condition (that doesn’t mean that things will improve immediately) that you should just not worry about. Most of you have cash to invest, and I'm looking to get that done as calmly as possible.

Relax, enjoy the tournament, have a great spring, and share my confidence that your portfolios will achieve new high ground sooner than the rest of the folk in our bracket.

Steve (03/30/05)
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steve@...
800-245-0494
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"The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read"