OUTLOOK

"Rally in Bank Stocks Ahead"

11/20/2007

We believe the KBW Bank Index, representative of bank stocks, is due for another rebound rally.  In our previous Outlook on 11/9/07, we were bullish on bank stocks and established long positions in the sector.  By 11/14/07, the KBW Bank Index rallied to our target level and we exited with a profit.

After exiting our long positions on 11/14/07, bank stocks have declined once again to levels that we consider attractive.  As of 11/20/07, we have re-established long positions in bank stocks and expect the KBW Bank Index to rally to 95 or more within the next 4 weeks.

Mark Yuan, CFA