Investors endured a bumpy ride throughout 2014, a year marked by a rallying dollar, slowing economies in Europe and Asia, rising geopolitical tensions, a tumbling oil price and falling interest rates. Despite an abundance of worrisome headlines our hypothetical AIS Moderate Portfolio provided a positive return of 5.41 percent (see page 2 for more detail). Once again we present our timeless annual reminders to help you stay on track in the New Year.

• I will understand my own circumstances and formulate an investment plan based on my needs, not in anticipation of market trends.
• I will remind myself that investing is not a form of entertainment—if I have an urge to gamble, I will go to Las Vegas.
• I will stick to my plan.
• I will not attempt to pick winning stocks.
• I will ensure that my holdings are adequately diversified within each asset class I own.
• I will focus on minimizing my investment-related costs.
• I will stay abreast of changes in investment-related tax laws.
• I will not purchase any financial instrument I do not understand.
• I will ignore money managers or others selling products rather than advice.
• I will ignore market prognosticators.
• I will take full advantage of my qualified retirement plans by making the maximum allowable contributions consistent with my budget.
• I will hold my least tax-efficient assets in my tax-deferred accounts.
• I will rebalance my portfolio infrequently, but at regular intervals regardless of the current state of the markets.
• I will not allow the price I have paid for a security to influence my future investment decisions—except for tax considerations regarding capital gains and losses.
• At year end I will harvest tax losses simply and without deviating from my target portfolio allocations, by selling and buying index-type funds within the same asset class.
• I will appreciate the simplicity of the AIS approach; instead of worrying about factors that are not within my control, I will establish my plan and turn my attention to enjoying life.

Also in This Issue:

Quarterly Review Of Capital Markets
A Reader Inquires
Mutual Fund Distributions: Cash Or Shares?
89 Years Of U.S. Stock Market Returns
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked By Yield
Recommended Investment Vehicles