What Matters Most For July 20, 2009

• Mid-Year Review

• Corporate Bonds And Yields

• Vital Signs

• Coming This Week

Mid-Year Review

• What a difference one quarter makes

• S&P 500 6 months ending:

• Q1 2009: -11%

• Q2 2009: +3%

SPY at June 30, 2009

Mid-Year Review

• Technology up 24% YTD

• Microsoft

• IBM

• Apple

• Cisco

IYW at June 30, 2009

Mid-Year Review

• Internet up 30% YTD

• Google

• Amazon

• Yahoo

• Ebay

FDN at June 30, 2009

Mid-Year Review

• Networking up 38% YTD

• Qualcomm

• Motorola

• RIMM

• Juniper Networks

IGN at June 30, 2009

Mid-Year Review

• Materials up 12% YTD

• DuPont

• Dow

• Alcoa

• PPG

IYM at June 30, 2009

* Includes ALL vessels on order

Mid-Year Review

• Homebuilders -1% YTD

• DR Horton

• Pulte

• Centex

• Lennar

ITB at June 30, 2009

Mid-Year Review

• Shipping up 9.4% YTD

• Teekay

• Seaspan

• Frontline

• Eagle Bulk

SEA at June 30, 2009

Corporate Bond Market and Yields

• Risk aversion trades see-sawing

• Ten year maturities

• Treasuries 3%

• Investment Grade 5%

• High Yield 11%

• Muni 3%

Vital Signs

• A Texas Story

• Job losses begin to reflect national trends

• Economic losses moderate compared with nation

• Energy Industry

• Natural gas

• Extraction

• Rig count

Vital Signs

Vital Signs

• Texas Exports

• Falling dollar

• Strong energy

• Suddenly weak

Coming This Week

• U.S. Consumer Sentiment

• U.S. Existing Home Sales

• U.K. BoE Minutes

• U.K. Retail Sales

Thank you for your participation

Information, estimates and opinions contained in this report were obtained from sources we believe to be reliable, but are not guaranteed as to accuracy or completeness. This report has been prepared for informational purposes and is not a solicitation or an offer to buy or sell any security. It does not purport to be a complete description or analysis of the securities, companies, markets or developments referred to herein. All expressions of opinions are subject to change without notice, and we do not undertake to advise you of any change in our figures or recommendations. We, our employees, and/or our officers and directors may from time to time have long or short positions in the securities mentioned herein. The securities mentioned in this report may not be suitable for all types of investors; their value and the income they produce may fluctuate and/or may be adversely affected by exchange rates.