Investment Recap Fourth Quarter 2003

The year 2003 was a very successful one for stock market investors. Very early in the year we had made the prediction to several of our institutional clients that “the market” would rise by 15-20%. In actuality, the S&P 500 index rose 28.6% and the equity portion of our accounts were up 35+%. Our satisfaction with results is more from the standpoint of having had the nerve to encourage clients a year ago to expect good things from both the economy and the market, and therefore, to see the glass as half full rather than half empty.
 
We are again in the quarterly earnings season and expectations are once again properly optimistic for double digit earnings increases. This should translate into somewhat higher stock prices given the low interest rate and high productivity environment.
 
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