INVESTMENT ADVISORY NEWSLETTER

AUGUST 2005

I am writing this newsletter just before the end of July as I am setting out on my annual vacation. The final results for July are not in but the past three months have been good for those invested in the general markets such as you. The average mutual fund (with reinvested income) rose 3.9% in May, followed by 1.8% in June and another rise in July for a 7% increase in the past three months. This has been one of those unexpected, pleasant periods in our economic history and is one of the reasons why it is so important to stay fully invested in order to catch the market up ticks.

The largest sector rise once again was in real estate. However, I continue to believe that when interest rates rise, we will see a flattening or reversal among the real estate investments.

Growth funds are now beginning to edge out value funds, although by a very small amount. As before I am encouraging you to keep a diversified position to include both growth investments and value investments. One of our goals is to not merely diversify but rather to customize your diversification to match up to your long-term investment goals. Over time both your goals and the market will change, making it important for us to speak together on an occasional basis.

Please continue to enjoy a beautiful summer and call me at anytime with your investment or financial questions and concerns.

~Roger Werner~