The fundamentals for European shares are good. A strong economy, good earnings and positive outlooks all combine to make them attractive.

The biggest part of the profit cycle now lies behind us. The sort of profit growth we have seen over the last few years will be hard to match. In this environment shares are trading at fair value and are certainly not undervalued.

Growth seems to be picking up. We are somewhat more optimistic on European shares.

Besides earning returns, we're making a positive impact on the economy of formerly bypassed California markets. We have identified three key benchmarks of underserved markets: companies that have limited access to capital, companies that employ workers who reside in economically disadvantaged areas, and companies that have female and/or minority management.

Investors are still looking for the economy to begin to pick up toward the end of this year with positive earnings comparisons occurring starting in the first or second-quarter of next year (2002). Trying to trade the market on the basis of whether the Fed is going to cut by 50 or 25 basis points, in a long-term portfolio, is not a prudent approach to investing.

The positive impact of an FTA is tremendous, ... Prospects for the Philippine Economy.