New York - Although it is 2006 and the world has changed - we go back in time to our investment philosophy back then and what it looks like today.

Way way back in the Spring of 2001 - we assumed that the aggregate of increased oil and electricity prices throughout the US would constrain US economic growth. As the summer arrived, we saw no sign of improvement and we believed that conditions would not improve until at least the later half of Q4.Then the terrorist attach on September 11, 2001. We predicted that the the economic slowdown experienced in the US will accelerate and continue for many months. We were correct. Investors who stayed with our asset allocation of only 25% in stocks did better than most equity exposed investors.

Today --despite the ongoing war in Iraq and increased tensions with North Korean we remain optimistic about the large multinational organizations such as Citigroup, GE, Johnson and Johnson and Microsoft.

We believe these blue-chip companies are significantly undervalued.

We also like Symantec the anti-virus software company as well as Hyperion. These companies should benefit from the overall Vista upgrade cycle as well as consolidation within the software industry.

We continue to like oil stocks such as Texaco/Chevron and ExxonMobil will continue to show above market performance. 

We also like dividend paying stocks and limited partnerships including Suburban Propane (SPH), Standard & Register (SR) and WD-40 (WDFC). All of these stocks should be able to maintain their dividend payments although any cut in their current dividend stream would be negative. 

That is it for now and we hope you make some money. Do your friends a favor and tell them to subscribe to The-Adviser.com Alert for FREE by Clicking Here.

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