January 5th 2009  

Dear Investor:

Until now, our longer-term assessment of the Investment Rate has been the foundation for all of our analysis.  That will always be true. It has accurately predicted major economic cycles since 1900, and I do not expect that to change.  However, reasonably, our longer-term evaluation of the Investment Rate usually leaves behind a void in our current analysis.  The Investment Rate itself is the longest longer-term analysis available.  Stemming from 1900, the average duration of the up cycles is 26 years and the average duration of the down cycles is 11 years.  Reasonably, though, opportunity exists in between those peaks and valleys as well, and with this added analysis, we are in position to take advantage of those too.  The sweeping guide of the Investment Rate, as a standalone observation, fails to identify the tighter frequency oscillation patterns in between extended durations.  Obviously, it proves the long-term cycle, but it does not provide insight to 1-2 year cycles, and those are usually more important to investors.  However, our return to parity analysis does.  Therefore, with current economic conditions in mind, the focus of this observation is on the next leg of direction.  Our Return to Parity analysis satisfies the interim void left behind by the Investment Rate, and it provides a tangible assessment of current and future market conditions.  It measures current demand ratios and compares them against the normalized demand ratios of the Investment Rate.   This is a demand - side analysis.  In turn, linear relationships are observable, and insight into future demand cycles comes clear accordingly.  Therefore, it can also be used to project more immediate future economic conditions and it complements the longer-term conclusions the Investment Rate has already proven . 

• The full report is available to our subscribers. 

• It is also available to free trial members. 

• It includes concise recommendations for 2009.

• Login, and navigate the Investment Rate to find the Return to Parity.

Good trading.

Sincerely,

President and CEO

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