Higher Market Making for Happy Holidays

Chart of the Week for December 19-31, 2003

As holiday merrymaking gets underway, stocks are giving investors an extra reason to celebrate. The U.S. equity market is poised to finish 2003 in positive territory, marking the first annual gain in four years. Stocks surged in the second quarter once war-related uncertainty abated, and have climbed steadily as the economy and corporate profits improved. What will happen in 2004 is of course unknown, but this year has been a rewarding one for investors, making our stockings, and portfolios, a little stuffier. Happy Holidays!

* This illustration was compiled by information provided by both Bloomberg L.P., which is an information services, news and media company serving customers around the world and Ibbotson Associates. Both Bloomberg L.P. and Ibbotson Associates are not affiliated with the ICMA-RC. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities. This information is intended for educational purposes only and is not to be construed or relied upon as investment advice. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended here and should understand that statements regarding future prospects may not be realized. The S&P 500 is an Index of 500 Stocks, and a widely recognized, unmanaged index of common stock prices. The Dow Jones Industrial Average (’DJIA’) is a price-weighted average of 30 actively traded blue chip stocks primarily industrials and is the most widely quoted of all market indicators. The NASDAQ Composite Index (’NASDAQ’) is market value-weighted index that measures all domestic and non-U.S. based securities listed on the NASDAQ Stock Market. A fund’s portfolio may differ significantly from the securities held in these indices. These indices are not available for direct investment; therefore their performance do not reflect the expenses associated with the active management of an actual portfolio. Performance reflected above represents past performance. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Past performance is not indicative of future returns. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400.