OUTLOOK

"Taking Profits on a Gold Correction"

6/7/2007

In our Outlook on 4/23/07, we stated, "We believe that Gold will decline at least 4% from its peak level within the next 10 weeks."  Our forecast was correct.

From a level of $688.70 (London PM Fix) on 4/23/07, gold declined to as low as 652.65 (London PM Fix) on 5/30/07, correcting over 4% within 10 weeks as forecasted.

Our mission is to achieve consistent, steady profits in a variety of asset classes (equities, commodities, and bonds) and different market types (bull and bear).  Year to date, we have profited in 4 out of 5 completed trades which is consistent with this mission.

Mark Yuan, CFA