Our next issue will feature seven business owners, who will pick five stocks that they feel will beat the S&P 500 Index in 2006. As of December 12, 2005, the S&P 500 Index was up 3.92 percent for 2005; not a robust showing, but at least positive.

The S&P 500 Index is composed of 500 U.S. stocks that make up a wide variety of sectors within the US economy. The stocks within the Index change from time to time, with the latest being the addition of Google, a high tech search engine company, along with 11 other companies. Whenever stocks are added to the index, it usually causes them to rise in value, because all of the mutual funds that try to mirror the S&P 500, the so called index funds, must buy shares of those companies that are being added. The reverse usually happens to those stocks that are being removed from the index, because of the selling which will take place.

Look for the next issue, to see which business owners have been selected to be contestants in our Stock Watch contest for 2006.