MJB Asset Management

We have opportunistically entered the stock market when prices appear attractive; we believe the strongest values currently are in large U.S. stocks. We have continued to limit our exposure to interest sensitive bonds; we do find value in distressed securities, as they are available at comparatively inexpensive prices and have comparatively low interest rate risk. Lastly, in the face of continued high market fluctuations, we have maintained an above-average weighting to alternative strategies designed to limit volatility.

Many investors ? still fearful of anything that carries risk ? have piled into Treasury bonds, stunningly willing to accept paltry rates of interest in exchange for safety of principal. The strongest potential for gains right now, however, is in the common stocks of large, dividend paying multinational corporations that have repaired their balance sheets and have substantial cash on hand. Investors fearful of the stock market are leaving the prices of many of these companies at attractive levels, creating an opportunity for investors who are not as baggage-laden.