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The LJE Asset Allocation Process, the Fourth Quarter Performance and the First Quarter 2004 Outlook

December 29, 2003

Both theory and experience show that changes to the economic environment (whether caused by taxes, regulation, or fiscal and monetary policy) impact the market and asset prices. The market's reassessment of asset prices after such changes is far from haphazard: there are distinct patterns that emerge. The linkages between the economic environment and the relative performances of the various asset classes identified by our research are reported below.

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