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Tech was hit hard in the last half of May, with eight of the 20 worst performers being Tech related.

Expect Q2 and Q3 GDP to weaken due to business cost cutting, lagging global economy and less robust consumer spending. But, tax rebate, the Fed, and money supply growth should spawn new economic expansion by early 2002.

The Commodity Diffusion Index is an outstanding inflation monitor and has also been a good gauge of future market performance.

A look back at 20 prior bear markets (1900 to date) to examine the question, “Just how long does it take to recover from a bear market?”

I am positive about today’s stock market, but there are some considerations that could cause my optimism to be premature. A bubble/bust comparison between the great gold and silver bubble of 1979-1980 versus the 1998-present Internet sector. Not all single digit stocks should be shunned.

Some may disagree, but a number of classic bull market transition elements are in place. Also, falling Earnings are not reason to stay away from the stock market. Superior performance comes in the years earnings are falling the most.

Tech stocks came roaring back in April (Info Tech sector up 22%), but don’t expect another parabolic rise!

Based on the weekly Advance/Decline line, market breadth has improved considerably. This is evidence of a much stronger underlying stock market than the S&P 500 and other measures might indicate.

So far in 2001, 62% of trading days qualify as Extreme Volatility compared to the historical norm of 4% since 1971.

U.S. focus equity fund net inflow of $15 billion is estimated for April. This reverses the record level $15.7 billion monthly outflow in March.

Despite stock price corrections in the last year, significant net selling continues among the “smart money”.

Continuing to evaluate Leuthold Index methodology.

New series compares index industry sector weights with sales and earnings contributions.

If we get another performance month like April, we may again have to re-christen this as The Internet Opportunity Index.

This highly cyclical group should benefit earlier than the chipmakers in a recovery.

In April, the technology stocks came roaring back to life. Of the 20 best performing groups during the month, 14 were technology related.

Overall inflationary pressures subsiding, but expect a few more energy related flare ups.

Increased disclosure of mutual fund holdings detrimental to investment performance.

Bear market broadened out in late March to include other than technology sectors. Never before have so many lost so much.…There is plenty of blame to go around. Academia, The Street, the Media, the “Experts” to name a few.

Tech valuations very much back in line, the question is, how low can they go?