David Bulteel

“Equities advanced further as quarterly earnings reports were reassuring and economic releases indicate that the growth ‘air pocket’ is over. The UK economy looks relatively weak but offers an attractively valued source of overseas earners. Bonds remain unattractive, offering little margin of safety against adverse inflation surprises. Although high, oil prices are a headwind, and equity markets look reasonably rated, with more upside potential if corporate profits continue to rise into 2006.”