2005 PROVIDED MEAGER MARKET RETURNS

2006? NO DISCERNABLE DIFFERENCE?

BACK IN NEW MEXICO TERRITORY

The Author was in Indiana between Christmas and New Year’s Day. It was a nice respite. He visited family and friends and saw some real economic and community progress in his former hometown. Perhaps as Bob Buettgen, the editor of the local newspaper noted, there is a “critical mass” of population or economic growth for a small town and Ligonier has achieved it. In all, the Author spent very special time with very special people.

The Author also read an old quote by a New Mexican politician referring to the 47th state as more of a colony or territory than a full-fledged state. When considering the state’s cronyism, corruption, drain on the Treasury and amateurish governmental administration, is Washington in control or is Santa Fe?

MAJOR MARKETS, LITTLE REWARD

The Dow closed the year down .61%. The broad S&P 500 was up 3%, while the NASDAQ managed a 1.47% increase. The equal-weighted S&P 500 index, which gives each stock the same representation in the index of 500 stocks, was up 6.84% for 2005. This index trades as an exchange-traded fund (EFT) under the symbol RSP. It has stronger relative strength than the traditional S&P index. If an investor seeks broad exposure to the American equity market, it presents a better choice than the conventional capitalization-weighted 500 index investment.

The Author’s Quantum Multiplier Portfolio, which traded since June of 2005, managed a 4.89% gain. Gold, held through the (ETF) IAU, generally led returns with an 11.36% return. Also performing well were international ETF investments in Latin America, Korea and emerging markets.

A LOT TO SAY, BUT NOT TODAY

The Author did manage to read some interesting material and engage some interesting concepts that he will share over the next month or so. But not much more today. It was a good week back east and there seems less to say here, right now.

HOLD YOUR TICKETS UNTIL THE RESULTS ARE OFFICIAL IN THE DESERT OF THE REAL!