Excerpts from Vanguard's 2006 Year in Review

A strong and growing economy and low interest rates provided the foundation for 2006's excellent market performance

The value sector of the market (high dividends, low p/e, low price to book) outperformed the growth for the 7th year in a row.

Because the market grew at a rate consistent with the fundamentals in the economy, the market remains fairly valued.

While there are risks in the market (rising interest rates and lower growth trends), with diversification in appropriate asset classes, individual investors can prosper.

Past performance does not guarantee future results. Each investors risk tolerance and return objectives are different. Contact us to discuss your 2007 portfolio strategy.