As an indication of the market's uncertainty, interest rates have changed very little so far this year, and yields on securities from 2 years to 10 years are very similar. Unless we can be compensated for taking additional risk, we will remain conservative in our bond selection. For this reason, we continue to employ a neutral intermediate duration strategy with yield enhancements from select corporate credit values. The Russell 2000 Index is an unmanaged, market weighted index consisting of the smallest 2,000 companies in the Russell 3000 Index, which consists of the largest 3,000 domestic stocks. The Russell 2000 is regarded as generally representative of small capitalization stocks.
Past performance is no guarantee of future results.
Given the inherent volatility of the securities markets, it should not be assumed that future investors will experience returns, if any, comparable to those discussed herein. Small company investing involves greater opportunity for growth, but may also involve greater risks, including more limited earnings histories and product lines and greater price volatility.