OUTLOOK

"Profiting from a Rally in the S&P 500"

10/11/2007

On 7/30/07, we stated, "We believe the S&P 500 will rally to 1500 or more from its recent close of 1458.95 on 7/27/07."  We said this rally would occur within 8 weeks.

Our forecast was correct.  The S&P 500 rallied to 1500 or more within 8 weeks of our original call.  In addition, it reached an all-time of 1565.15 on 10/9/07.  We have taken profits on our long positions in the S&P 500 and stand ready to invest in other rewarding opportunities.

Mark Yuan, CFA