I am growing more concerned each and every day. This is just too good and too tempting to be a really good INVESTMENT atmosphere. The comfort level of the investing world is not quite there yet but is getting closer and closer with each new high in the Dow Jones Industrial Average.

BRAVADO AND GREED are pushing fear and self preservation further and further out of the picture on almost a daily basis.

We’re not there yet, but they have gone to find the Bell that is rung at the top. That is just a joke; of course there is no bell and it certainly will not be rung at the top. However, it is time to begin to get a little more cautious and careful.

I have recently witnessed the entire number of shares outstanding, for many securities, trading in a single day. How is this possible?? The same shares traded several times in the same day. That, my friends, is pure speculation and NOT INVESTMENT. As this practice becomes more and more prevalent, so does the risk of major losses.

I really am not being a "Chicken Little" but merely stating the fact that initial buys at this point need to be with deep value research and a clear understanding of further of same company.

I really think the best opportunities lie overseas, mostly Europe (US companies that get a large portion of their earnings from overseas) and maybe, finally, Japan. Not China/India directly (too high and too much speculation). We are devoting a lot of time and energy toward that research and the dollar/euro/pound relationship.

This is just a brief update to let you know our current thinking.

Regards,

Jack, et al.