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This publication has chosen not to employ this late 1997-early 1998 tactical trading strategy.

The following table compares the performance of the Russell 2000 Index since its inception in 1979 with the S&P 500.

Over and over we hear and read that today’s mutual fund investors are different. They are truly long term investors saving for retirement.

Each January, this publication has presented a look back at the prior year’s best and worst industry groups and institutional stocks.

Long term rates are "normally" higher than short term rates to compensate investors for the likely risk that inflation will undermine the value of their bonds.

Yield curve typically inverted about 62% of the time.

Wage inflation looked like it was finally taking off in October, but November's data showed a different picture, as four of the nine subsets (including Total Wage inflation) moved lower.

What we did well and not so well...

After wavering in neutral several weeks, Major Trend Index turned negative November 24...Go to sidelines. Market rallied strongly in November but fund investors uncharacteristically stayed on the sidelines. Is this increased caution or seasonality?

Emerging market opportunities? Established first bottom fishing investments in Korea and Malaysia in November.

The market fell in the week ending 11/5 and inflows dried up. Then came the surprise. The market rallied, but fund investors stayed on the sidelines.

For those who are looking to reduce their downside risk, we present potential Defensive Equity Sector Ideas, including Electric Utilities, REITs, Phones, Natural Gas and Value stocks.

Earnings momentum continues to be strong. Small cap earnings are improving significantly, while big cap results remain robust.

73 high volatility days YTD (31.6%). Highest volatility year since 1987 and matching 1982.

New Era investment professionals, crowding onto the money train and a different way to look at the economic impact of bear markets.

Long treasuries are still well above the underlying interest rate (real rate of 4%-5%). The inflation outlook remains tame.

Performance rundowns for The Leuthold Group’s equity market sectors ranked by November performance.

Employee stock option excesses (continued from last month), different viewpoints on options repricing (also continued from last month) and current updated inflation views.

This once reliable market anomaly seems to have lost its effectiveness. Last four years’ results have been subpar. At this point, we don’t plan to “Play the Bounce”. Market is extended and strategy no longer seems reliable.

Main Street math, fund managers age and experience and average mutual fund shareholder profits.