Weekend Commentary

On Thursday Dow Jones had a triple-digit loss. Good news is that crude
oil price is going down below $60 a barrel. Fed is going to meet on Nov 1
and there is a high probability that another quarter point increase in short
term interest rate will be announced. Asian market also turned downward
last night. Things look confusing but remember this is October. That's how
October usually goes. We recommend that it is a good time to take a few
positions - like in energy sector or in some Large Cap stocks that
consistently increased their dividend.

Don't go for a new position in Google even though they announced a good
quarterly result yesterday. It is too highly priced at this level at this point
of time and eternity. Unless you have too much money and afford to bear
any long-term downtrend, do not invite anxiety to your home.

Dollar: In early Asian currency trade Friday, the dollar was changing
hands for 115.05 yen , sliding from around 115.30 yen in late New York
trade on Thursday. The euro also rose to $1.2070 from $1.2025 a day
earlier.

Crude for November delivery fell to a low of $59.85 a barrel on in New
York on Thursday before closing down $1.38, or 2.2%, at $61.03 a barrel.
That's its lowest close since July 27. Natural-gas futures fell 4%
Thursday after a government report revealed that domestic supplies of
the heating fuel climbed above 3 trillion cubic feet for the first time since
mid-December of last year. The weakness in natural-gas prices combined
with a rise in oil supplies to pull crude futures prices to their lowest levels
since late July.

Mortgage Matters:

The average rate paid on a 30-year fixed loan increased for a 6th
straight week, to 6.1%, up from 6.03% a week earlier, according to
Freddie Mac. This rate is at its highest since the week ending July 1,
2004, when it averaged 6.21%.

The average for the 15-year fixed loan this week was 5.65%, up from
last week's 5.62% and last year's 5.07%. This level was last seen in June
2004 at 5.7%.

The one-year ARM (Adjustable rate Mortgage) averaged 4.89%, up from
last week when it averaged 4.85%. Five-year Treasury-indexed hybrid
ARMs averaged 5.59%, up from last week's 5.57%.

To achieve the mortgage rates this week, the 30-year loan required 0.5
point and the 15-year 0.6 point; the floating loans each required 0.7 point
[A point equals 1% of the loan amount, charged as prepaid interest].