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Market & Economic Brief

December 18, 2008

WORLD MARKETS
Stocks have moved into an impressive short-term uptrend. The S&P 500 is up nearly 18% from lows that where hit in November. International developed markets have recovered nearly 23% and emerging international markets 38%. It is not uncommon for a bear market to have a rally and I believe that is what is underway now. If the rally is sustain, the S&P could break 1,000. The long-term bias is still down and it is our opinion that a new bull market has not started. U.S. Treasuries continue their meteoric rise, with the 20 year index up an eye popping 32% since early November.

WORLD ECONOMY
The U.S. economy continues to weaken and leading indicators suggest more trouble may be ahead. International economies are reporting a variety of economic ills; China exports fell in November for the first time since '01.

INFLATION DATA
The threat of inflation has diminished considerably and been replaced with concerns over deflation.

U.S. RESIDENTIAL HOUSING
Trouble in the housing market is getting worse and spreading. Mortgage delinquencies rose in the 3^rd quarter and a fifth of subprime mortgages are delinquent. Prime mortgage problems are increasing as the recession affects more people. Seriously delinquent mortgages have surged.

Academically Sound and Institutionally Supported

Listed below you will find a partial list of links to websites for institutions that provide support services to Dightman Capital Group. No company listed has a ownership interest in Dightman Capital Group.

Fidelity Institutional Wealth Services — (fiws.fidelity.com)
With nearly $1.6 trillion in total managed assets, Fidelity Investments is one of the worlds largest providers of financial services and investment resources for individual and institutional investors. Fidelity is committed to continuous improvement, state-of-the-art technology, and peerless customer service.

Barclays Global Investors — iShares (http://www.ishares.com/)
For over 35 years, Barclays Global Investors has been at the forefront of developing innovative investment ideas built on a sound investment philosophy that applies science and technology to the investment process. They focus on the three dimensions of performance: Return, Risk, and cost offering clients Total Performance Management.

State Street Global Advisors — (www.ssgafunds.com/)
State Street Global Advisors is an acknowledged leader in institutional investing with $2.0 trillion in assets under management. The world's largest institutional asset manager and leader in several other investment rankings , SSgA is also the investment management arm of State Street Corporation, one of the world's largest custodians. Leveraging these combined strengths permits us to focus single-mindedly on delivering competitive investment strategies and integrated solutions to our clients worldwide, across virtually every asset class, capitalization range, region, and style.

Research Affiliates — RAFI (http://www.researchaffiliates.com/)
Research Affiliates is a research-intensive firm that strives to be the preeminent source of innovative products that add value for the global investment community. They are committed to research that results in superior investment products, and bringing innovative products to the marketplace through strategic affiliates with some of the world’s leading financial institutions.

Powershares — Xchange Traded Funds (http://www.powershares.com/)
Powershares is “Leading the Intelligent ETF Revolution,” providing investment advisers with exceptional asset management tools and market exposure through the replication of enhanced indexes. Powershares delivers this sophisticated asset management in one of the more benefit rich investment vehicles available today, the exchange-traded fund.

WisdomTree — (http://www.wisdomtree.com/)
WisdomTree Investments has created the first family of fundamentally weighted dividend indexes that cover all major market capitalizations both domestically and internationally.