American Investment Services, Inc.

Disciplined, Diversified, & Cost Effective

Aug. 2003 – Brother, Can You Paradigm?

Remember the late 1990s, when we were entering a “new economy” guided by a “new paradigm”? Business cycles were said to be repealed, information technology would expand productivity exponentially, and of course traditional valuations for common stocks (price/earnings and price/book ratios, dividend yield) were obsolete.

The party has ended, of course, and though the investing public has since sobered up, the hangover for many has been particularly painful. We hope the charts below serve as a reminder that investors should do their best to ignore sensational media claims, whether “bullish” or “bearish,” and instead focus on asset class behavior over the long term.

Also in This Issue:

SIPC Insurance – What You Need To Know
Tax Trends
Qualified Dividend Income – Make Sure You Earn It
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow-Jones Industrials Ranked by Yield