Monday Morning Review™ is so unique, with such potential for helping individuals navigate the investment world, that we want to ensure everyone understands what it contains and what it can do. Below are answers to some questions you may have after reviewing this site.

If you don't find an answer to any question you may have, please don't hesitate to contact us (see our Contact Us page).

Questions:

1. What is the Monday Morning Review™?
2. How do I use the Monday Morning Review™ ?
3. Why does Monday Morning Review™ only track the major indexes, such as the Dow Jones Industrials, S&P 500, and NASDAQ?
4. What kinds of stocks are in the major indexes (Dow Jones Industrials, S&P 500, and NASDAQ) ?
5. I own individual stocks and stock mutual funds. How do I use the Monday Morning Review™ ?
6. How do I find out to which stock or bond index my mutual fund is most similar?
7. I have bonds and bond mutual funds. How do I use the Monday Morning Review™ ?
8. How do interest rates affect my investments?

Answers:

1. What is the Monday Morning Review™? (back to the top)

The Monday Morning Review™ is a premier publication dedicated to providing a simple and effective means of timing the major stock and bond markets using some of the same systems used on Wall Street. Then, our expert and concise commentary quickly provides context and additional information on current and future trends.

We generate timing signals based on solid, mathematically derived and highly-tested systems that work in both bull and bear markets. But timing signals aren’t enough, without context, so we scour the investment world 's news and present an easy-to-digest synopsis, saving you time and money.

Our founder, J.E. Rapp, and his knowledgeable, expert staff bring all this to you. No matter which plan you choose (Bronze, Silver, Gold or Platinum), the Monday Morning Review™ gives you a ‘big picture’ view of the investment road ahead.

2. How do I use the Monday Morning Review™ ? (back to the top)

The concept is simple and easy-to-use. If you know that most stocks in the stock market are headed downward, you'll probably want to put your money somewhere else. Conversely, if major stock indexes are going up, chances are your stocks and stock mutual funds will also go up. Investing with the trend instead of against it greatly improves your chances of investment success.

Wall Street has known this for years. Yet, they implore investors to ‘buy and hold’, ‘invest for the long-term’, etc. What they mean is, ‘keep your money in the stock market so we can make ourselves money’. Another Wall Street ‘secret’ is their use of market timing systems to buy low and sell high. We took one of those well-known timing systems, the MACD (stands for Moving Average Convergence Divergence) and make a summary of signals available for a very low price (the Bronze Plan). Then, for those investors wishing to beat the standard free MACD and the 'buy and hold' strategy, we added our own proprietary, highly-tested systems (the Silver, Gold, and Platinum Plans.)  In addition, we monitor the markets and, in plain, easy-to-understand language, tell subscribers what’s really going on in the investment world that could help you and your investment performance. It’s effective, quick, easy, and affordable.

3. Why does Monday Morning Review™ only track the major indexes such as the Dow Jones Industrials, S&P 500, and NASDAQ? (back to the top)

These are the most visible, highly watched stock indexes in the world today. An old investor’s adage says, "When Wall Street ‘sneezes’, the world gets a cold." When these indexes are trending up or down, the world tends to follow. Also, how these three indexes perform has an affect on most all stocks. For example, if the Dow Jones Industrials drop significantly in a week, it's nearly certain that most stocks in all U.S. and global markets will head lower. Likewise, in a stock market rally where the Dow sees significant gains in a week, many stocks will also follow suit.

So, no matter what kinds of stocks or stock mutual funds you have, watching these three indexes and being on the correct side of their trend could dramatically improve your investment performance.

4. What kinds of stocks are in the major indexes (Dow Jones Industrials, S&P 500, and NASDAQ) ? (back to the top)

Each index is composed of various kinds of stocks that make up the final index number you see each day on the business news. Each is a bit different, yet it's extremely important for investors to know what kind of stocks are in each. For example, if you have a Large Cap Mutual Fund, you will want to keep an eye on the Dow. Or, if you have a Science and Technology Mutual Fund, the NASDAQ is probably most similar to your fund. Still, the S&P 500 index is the broadest of the three major averages and best represents the trend in the overall stock markets. Here are some simple definitions of the three major indexes:

DOW JONES INDUSTRIALS

This index is one of the oldest and best known in the world today. However, it has many problems that keep it from being one of the most relevant indexes. While it gets a majority of the headlines, it's not a ‘total’ picture of the stock market. A reporter named Charles Dow started the index in 1896 to provide a rough idea of what stocks (in general) were doing. At that time there were only 12 stocks in the average; today there are 30. The stocks currently in the index are some of the largest, multi-national companies in the world and were chosen to represent their respective industries. Most trade on the New York Stock Exchange. Currently (2006), the Dow Jones Industrials Average includes companies such as United Technologies, General Electric, Microsoft, Coca-Cola, Caterpillar, 3M, Johnson & Johnson, Wal-Mart, General Motors, McDonalds and Alcoa. A complete list is available on many web sites, financial sections of the newspaper, or on the internet.

S&P 500

The Standard and Poor’s 500 tracks the stocks of 500 companies; many more than the Dow Jones Industrials. Most of these stocks are large, leading companies that span nearly 100 industries sectors of the United States economy. Started in 1923, and later modified in 1957, it's one of the most commonly used and referenced of the major indexes. Unfortunately, the large company focus of this index means you won't find many of the smaller, but faster-growing companies. A complete list of these 500 companies is available from many sources, including newspapers and the internet. The following list (current as of November 2006) of the types of companies in the S&P 500 is divided by industry type, which could help you decide if it matches your particular stock or stock mutual fund.

Sector	% of Index
Financials	21.7
Information Technology	15.7
Health Care	12.0
Industrials	10.9
Consumer Discretionary	10.4
Consumer Staples	9.2
Utilities	3.5
Telecommunication Services	3.4
Materials	3.0

Note: This list is based on the November 2006 S&P 500 composition and are approximate representations. No recommendations or assurances are given as to the accuracy of these numbers. Stocks in this index change frequently, so consult with your advisor, broker, or reference material to obtain the latest industry sector information.

NASDAQ

Started in 1971, this is one of the newest of the three major indexes. Now famous as the index most benefiting from (and hurt by) the "tech bubble" and subsequent crash in the year 2000, it contains many technology companies in the computer and healthcare industries. The NASDAQ Composite represents about 4,000 traded stocks, though this number changes frequently. When you hear about this index in the news, it most often refers to the NASDAQ 100, which is a sub-index of this larger NASDAQ Composite. Similar to the S&P 500, the NASDAQ Composite has a broad range of companies represented, though, as you can see below, a substantial portion of the index is in computer technology and healthcare.

Sector	% of Index
Computer Technology (Software/Hardware)	52
Healthcare	14
Financials	11
Consumer Discretionary	9
Industrials	5
Telecommunications	5
Consumer Staples	1
Materials	1
Energy and Utilities	1
Other	1

Note: This list is based on 2004 NASDAQ composition and are approximate representations. No recommendations or assurances are given as to the accuracy of these numbers. Stocks in this index change frequently, so consult with your advisor, broker, or reference material to obtain the latest industry sector information.

5. I own individual stocks and stock mutual funds. How do I use the Monday Morning Review™ ? (back to the top)

The Monday Morning Review™ provides you with accurate predictions of market direction. When you invest with the market trend you have a much better chance of making money, than when you invest against it. Many stocks and mutual funds will follow the market’s general direction. For example, when the market is up, many stocks and stock mutual funds are also up. Similarly, these stocks and stock mutual funds are oftentimes down when the general market direction is down.

6. How do I find out which stock or bond index my mutual fund is most similar? (back to the top)

Often times, the mutual fund prospectus or annual report will have historical performance data that compares the fund’s performance to some benchmark. Many times, these benchmarks are one of the major stock indexes that we track. If the prospectus or annual reports don’t help, don’t hesitate to call a representative for your mutual fund and ask which major index your fund is most similar to. Perhaps it’s a blend of stocks coming from different indexes, which means watching all three major indexes could be helpful.

7. I have bonds and bond mutual funds. How do I use the Monday Morning Review™ ? (back to the top)

The bond market has upward and downward trends, just like stocks. Bonds have prices, just like stocks, but they also carry their own interest rate. The general rule to remember with bonds is that bond prices and interest rates move in opposite directions, i.e. when bond prices are up, interest rates are down, and visa versa. As a result, with bond funds there are more factors at work that won’t reflect an instant bond price versus an interest rate adjustment, but over time and if there’s enough movement in bond prices/rates, your bond funds will generally follow the overall trend in the bond markets. However, bonds (other than U.S. Treasury bills, notes and bonds) have a ‘quality’ rating that can also impact the prices and interest rates. Check with your investment advisor on these and other factors that can influence a bond price and interest rate when evaluating your investment plans and strategies.

8. How do interest rates affect my investments? (back to the top)

Interest rates directly or indirectly affect our lives in many different ways. High interest rates are great for savers, but are bad for borrowers and our economy. Low interest rates are good for people borrowing money to buy a home, or for businesses borrowing to invest in new plant and equipment, but savers aren’t rewarded and don’t get much return for their money.

While these interest rates can change by the minute, the Monday Morning Review™ offers subscribers to the Gold and Platinum Plans, a big-picture outlook and forecast for the direction of short-term (3-6 months), intermediate-term (2-5 years), and long-term (10-30 years) interest rates. Savers will generally watch the short-term interest rates, while borrowers, such as those seeking mortgages, will watch the intermediate and long-term interest rates.