REFORMING FINANCIAL REGULATION
As this issue of the Investment Guide was being prepared, the subject of financial regulation was front and center here at AIER and in the nation's capital.  We had the good fortune of having Dr. Edward J. Kane, professor of finance at Boston College on campus to deliver a lecture to the AIER summer fellowship program.  Soon after his discussion it was announced that the House and Senate had come to agreement over terms of a long-awaited financial reform package.

While we rarely take politicians at their word, exceptions are warranted.  No sooner was agreement reached when Senator Christopher Dodd, chairman of the Senate Banking Committee, admitted "no one will know until this is actually in place how it works . . .".  Though the broad parameters of the bill are evident, in deference to Senator Dodd, we reserve judgement regarding the details of the 2,000 page tome that has emerged. . . .

INSIDE THIS ISSUE
What Just Happened:  A Look at the "Flash Crash"
Rational Investing Amidst the Sovereign Debt Crisis
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked by Yield
Recommended Investment Vehicles