The U.S. financial markets turned in strong results over the last 12 months, as earlier concerns of rising inflation, a housing slowdown and high energy prices gave way to news of slower, but still resilient, economic growth, stronger than expected corporate earnings and dampened inflation fears and energy costs. This environment also led the Federal Reserve Board to hold short-term interest rates steady. Even with a sharp decline in the last days of the period, the broad stock market returned 11.97% for the year ended February 28, 2007, as measured by the S&P 500 Index. With interest rates remaining relatively steady, fixed-income securities also produced positive results. But after a remarkably long period of calm, the financial markets were rocked at the end of the period by a dramatic sell-off in China's stock market, which had ripple effects on financial markets worldwide. In the United States, for example, the Dow Jones Industrial Average had its steepest one-day percentage decline in nearly four years on February 27, 2007. The event served to jog investors out of their seemingly casual attitude toward risk and remind them of the simple fact that stock markets move in two directions -- down as well as up. It was also a good occasion to bring to mind several important investment principles that we believe are at the foundation of successful investing. First, keep a long-term approach to investing, avoiding emotional reactions to daily market moves. Second, maintain a well-diversified portfolio that is appropriate for your goals, risk profile and time horizons. After the market's moves of the last year, we encourage investors to sit back, take stock and set some realistic expectations. While history bodes well for the U.S. market in 2007 since 1939, the S&P 500 Index has always produced positive results in the third year of a presidential term ; , there are no guarantees, and opinions are divided on the future of this more-thanfour-year-old bull market. The recent downturn bolsters this uncertainty, although we believe it was a healthy correction for which we were overdue. The recent volatility could also be a wake-up call to contact your financial professional to determine whether changes are in order to your investment mix. Some asset groups have had long runs of outperformance. Others had truly outsized returns in 2006. These trends argue for a look to determine if these categories now represent a larger stake in your portfolios than prudent diversification would suggest they should. After all, we believe investors with a well-balanced portfolio and a marathon -- not a sprint -- approach to investing, stand a better chance of weathering the market's short-term twists and turns, and reaching their long-term goals.
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23. Chrysostomou A, Becker G, N Engl J Med, 2001; 345: 9256. Rachmani R, SlavachevskyI, Amit M, Diabetes Medicine, 2004; 21: 4715. Sato A, Hayashi K, Saruta T, J Hypertens, 2005; 18: 449. Schjoedt KJ, Rossing K, Juhl TR, et al., Kidney Int, 2005; 68: 282936. Rossing K, Schjoedt KJ, Smidt UM, Diabetes Care, 2005; 28: 210612. van den Meiracker AH, J Hypertension, 2006; 24: 228592. Schjoedt KJ, Rossing K, Juhl TR, Kidney Int, 2006; 70: 536542. Blasi ER, Rocha R, Rudolph AE, Kidney Int, 2003; 63: 17911800. Zhou X, Ono H, Ono Y, Frohlich ED, J Nephrol, 2004; 24: 2429. Dworkin KD, Hostetter TH, Rennke HG, et al., J Clin Invest, 1984; 73: 144861. Sechi LA, Novello M, Lapenna R, et al., JAMA, 2006; 295: 263845. Parving HH, Kastrup J, Smidt UM, et al., Diabetologia, 1984; 27: 54752. Hene RJ, Boer P, Koomans HA, Mees EJ, Kidney Int, 1982; 21: 98101 and eulexin.
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REFERENCES Conte, B.A., Laforet, E.G. The role of topical anaesthetic agent in modifying bacteriologic data obtained by bronchoscopy. New England Journal of Medicine, 1962, 267, 957. Denek, S.J., Bower, J.S. Diagnosis of pulmonary tuberculosis by flexible fiberoptic bronchoscopy. Am. Rev. Resp. Dis. 1979, 119, 677. David, H.L. 1975 ; . Bacteriology of the mycobacterioses. U.S. Department of Health, Education and Welfare, Public Health Services, Communicable Diseases Centre, Atlanta. Hong Kong Chest Service, Tuberculosis Research Centre, Madras, India and British Medical Research Council 1979 ; . Sputum smear negative pulmonary tuberculosis. Controlled trial of 3 month and 2 month regimens of chemotherapy. First Report. Kulpati, D.D.S., Jeera, K.S., Gupta, R., Adarsh. Early diagnosis of smear negative pulmonary tuberculosis by flexible fiberoptic bronchoscopy. Indian J. Tuberculosis 1986, 33, 179. Mullen C.V., Honig, E.G., Oilman, MJ. Impact of broncho fiberoscopy and transbrochial lung biopsy on diagnosis and treatment of pulmonary tuberculosis. Am. Rev. Resp. Dis. 1983 127 4 ; , 191.
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Handout 13 Credit Unions in Lesotho In an attempt to increase local investment in agriculture in Lesotho, the National University of Lesotho Extension programme - a partnership between the National University of Lesotho and the Canadian-based St Francis Xavier University, CIDA and Misereor - suggested that credit unions be formed. Village leaders organized community meetings at which the extension service explained how a credit union worked. After this orientation the community members were responsible for deciding whether they wanted a credit union, and, if so, they had to take the initiative to invite the extension service back to provide training. The commitment of time, effort, and resources on the part of the community firmly rooted the project at the local level. Once the decision to form a credit union is made, villagers form study groups and commit a year of study to become thoroughly knowledgeable about the concepts and operations. Then several members are selected to participate in an intensive course on book-keeping and financial management. They were required to pass qualifying examinations in order for the credit union to be formally established and officially registered with the Ministry of Agriculture and Cooperatives. Each credit union is managed and administered entirely by its members, who are responsible for all decision-making. The members also elect a nine-member Board of Directors, an Auditing Committee, and an Education Committee. Once the Credit Unions are established, it is government's responsibility to conduct an annual financial audit. The World Council of Credit Unions and the Canadian-based Caisse Populaire provided training materials and assistance in establishing an umbrella organization the Lesotho Cooperative Credit Union League LCCUL ; . At one point, when the government announced its intention to take over the credit unions and use them as a base for a national bank, the cooperation of the communities with LCCUL proved a formidable force in fighting this government initiative. The movement eventually led to the formation of more than 70 credit unions throughout the region. Membership has increased steadily over the years: given the extended families of the average member, the credit unions reach more than 250, 000 direct beneficiaries. Their programme has diversified to include a number of income-generating activities such as communal gardens and craft cooperatives, and some unions have even constructed their own facilities, which can be rented out to earn income. Due to its success, Lesotho has been selected as the site for the African Cooperative Savings and Credit Association training centre for Southern and Eastern Africa. Establishing a credit union gives members an opportunity to save regularly, borrow in times of need, learn how to manage their own finances, and develop habits of thrift and honesty. They use the skills they acquire and their access to capital to start their own small enterprises. Approximately 30% of credit union members hold leadership positions throughout the village in development committees, churches and political parties. In addition, at least 45% of the credit union members have learned how to read and write. And since many of the men are absent from the village for long.
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