06/30/2008

Hello:

According to market analyst Louis Navellier, "speculators now account for 70% of all the trading in crude oil futures on the New York Mercantile Exchange, up from 37% back in 2000". We all remember the beating that hedge fund "speculators" took over the past two years due to their investments in mortgage-backed securities. Why should they be more successful with oil futures?

Also, in Mr. Navellier's report, he writes, "Americans drove 4.5 billion fewer miles in April [2008] compared to the same month a year earlier, according to the Federal Highway Administration (FHA). Specifically, the number of miles driven declined 1.8% to 245.9 billion. It was the lowest number of miles since April 2003, when Americans drove 239.7 billion miles." So it appears that the American consumer is being smarter about the petroleum craze than they were about the real estate/mortgage craze.

Good for the American consumer, but when will the hedge-fund speculators ever learn?

We will be traveling over the Independence Day Holiday through the following week. We will be checking voicemail and email daily or whenever possible. Should you need to place a trade or request a check, please call our back office, LPL Financial, directly at 800.558.7567.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager