Our mission is to follow the criteria below and make ever effort possible to stay focused on our goal.

1.      Preservation of capital

2.      Achieve an above-average return (as measured by the S&P 500)

3.      Realize a constant and on-going cash return in the form of dividends, interest and option income that will adequately keep pace with inflation in real terms

            In order to achieve these goals it is necessary to be focused on the long term, i.e. 2 ½ to 5 years while being very aware of the short-term jitters and be able to take advantage of the jitters in order to achieve the above.

            In this vane, you can expect to see a rather violent rally in the intermediate term (approx 200 pts on the Dow Jones Industrial Average).  The real surprise will be that this time it HOLDS. There are just too many scared bears out there and all the problems you are hearing about are already priced into the market. 

                We are entering a period when good news will be good AND BAD NEWS WILL BE GOOD.  I do worry more about the period of time when bad news is good news because it overstates true value.

More later.

The weather in Montana is just prefect—wish you were here.

Regards,

Jack