Investment Recap First Quarter 2003

The excuses that investors, politicians, and editorial writers have used for many months are now no longer valid. The war in Iraq is basically over. Fortunately, none of the several potential negative scenarios that worried us all has come to pass. Now consumers, the President and Congress, can all “get on with the job” of looking to stimulate our domestic economy.
 
As a result of these significant developments, we are more optimistic on stocks and moderately pessimistic on bonds. We see substantial monetary and fiscal policy stimulus in the works to rev up the U.S. engine of growth. These policies risk causing an up-tick in what has been a very sleepy rate of inflation.
 
We are happy to go back to what we are trained to do; that is picking stocks, and not spending agonizing hours attempting to judge or predict geopolitical events. God Bless America!