Active Management The strategy of holding common stocks forever is obsolete. Our goal is to utilize both fundamental and technical analyses, making modest shifts to accomplish the following:Rebalance common stocks, bonds, and money market funds.Rebalance industry sectors from overvalued to undervalued sectors.Rebalance the weightings between value and growth stocks to take advantage of expected and achieved price changes.In addition, as individual common stock issues move to extreme levels of overvaluation, we trim back these positions. We are not traders or market timers, but we establish target prices and scale back issues to take advantage of situations as they develop.The status of each security holding is constantly monitored to determine suitability for continued ownership, while new purchase candidates are also being screened.Purchases and sales are made by consensus and implemented according to account objectives. In addition to the research efforts of the investment team, Capital & Security Management utilizes the resources of several leading Wall Street firms. Recently, greater weight has been given to objective research firms that have no potential conflicts of interest between their investment banking activities and the research provided to individual investors.