Quarterly Update - Keeping Score

For the 2nd quarter of 2006, our quarter over quarter gain for all accounts managed was 4.76%. The year over year gain sits at 22.67%. The second quarter was a challenging quarter to trade. The markets moved up from the beginning of April to about mid May when they broke and headed down sharply. I was nimble enough to take most all of the accounts to cash before the markets gave back the gains they had given. Then I began to buy back some stocks at much better values, and was also able to buy into the gold and silver Exchange Traded Funds at what appears to be their bottoms. And they say you can't time the markets. Fact, after the depression in the 1930's, it took twenty-five years for the market to get back to even. Point is, when the markets turn down, it is best to step aside and get into cash. As they say, cash is not trash. As the second quarter of 2006 ends, we remain about 22% in cash. Still, money markets are paying almost 5%.