OUTLOOK

"Banks Rally Again"

11/30/2007

In our Outlook on 11/20/07, we forecasted a rally in the KBW Bank Index to 95 or more within 4 weeks.  Our forecast was correct.  The KBW Bank Index rallied to 95 or more within 10 days, reaching as high as 98.71 on 11/30/07.

For November, this was our second forecast for a rally in the KBW Bank Index.  The first one was made on 11/9/07.  In both cases, the KBW Bank Index rallied to our targets within the forecasted time frames.  As of 11/30/07, we have taken profits on our bank stock positions and may re-initiate positions if we see another buying opportunity.

Mark Yuan, CFA