Most major stock market indexes started the fourth quarter of 2002  the same way the third quarter ended, that is continuing to decline.

Stock market investors however, regained their courage by early October, and as such, most major stock market indexes aggressively rallied higher throughout October.

I guess investors embraced the thesis that many stocks were now a bargain after a significant decline in the third quarter.  The third quarter was one of the worst quarters in the stock market's history.

Throughout October the economic news being disseminated continued to depict that the U.S. economy was in the doldrums. In addition, the labor market remained very weak.

The only silver lining being depicted throughout October was that the real estate market continued to remain vibrant, as the lowest mortgage interest

rates in decades continued to entice eager buyers to the inflated real estate market.

Businesses however, remained on the sidelines as capital spending remained subdued throughout October.

The bond market did not fair as well as the stock market in October, as bond investors sold off bonds aggressively throughout  October to raise the funds they needed to buy stocks.

The "War on Terrorism" and "The War in Afghanistan"  remained in the back-ground throughout October, with no major events taking place.

Of course the Middle East conflict continued throughout October, with little hope for a peaceful resolution being apparent for the near future.

Other major stock markets throughout the developed nations, more or less mirrored the performance of the U.S. stock market throughout Octo-

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ber, that is to rally off their recent lows.

Most major U.S. stock market indexes finished October still significantly in negative territory for 2002,  even though they rallied significantly during most of October.

On the regulatory front, there was political pressure exerted to force Harvey Pitt, the chairman of the SEC, to resign in October.

President Bush,  however, publicly proclaimed his support of Mr. Pitt, and said he was satisfied with the performance of his duties.

The stock market continued its ascent in early November as most major stock  market indexes continued to rally. Stock market  investors  chose to ignore the economic statistics being released, depicting at its best, a  fragile  recovery  for  the   ailing  U.S.  economy.   The  labor  market  continued  to  deteriorate

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