« This is not the end of the World. The only thing that will bring on the end of the World will be the end of the World. » A leading mental coach 2009 GLOBAL ECONOMIC OUTLOOK

« This is not the end of the World.

The only thing that will bring on the end of the World will be the end of the World. »

A leading mental coach

THE GLOOM & DOOM… California unemployment jumps to 8.2%, third-highest in the U.S. The state's unemployment rate is the highest in 14 years; 10:58 AM PST, November 21, 2008

JUNK DEBT HAVEN’T WE SEEN THIS DOOM BEFORE ??? Oct 13, 2008 Nov 19, 1973 OIL Nov 2, 1987 JUNK BONDS Sept 22, 2000 JUNK EQUITY

A CRISIS FUELED BY A REAL ESTATE BUBBLE

REAL ESTATE DEBT IS STILL BACKED BY A HEAVILY INDEBTED CONSUMER (WHO WILL NOT CONSUME AS BEFORE) 1929 depression – 2.6x 2008 recession – 3x 3X IN 20 YEARS

THE REALISTIC CURVE Dow at 8500

AND U.S. GDP IS ON A GOOD PATH TO POSITIVE RECOVERY IN 2H09, EPS IN 1H10, CONSUMER IN 2H10…EUROPE A LAGGARD

BUT THIS RECOVERY WILL BE LONG 3-5 quarters…maybe longer

THE GOOD NEWS FOR TECHNOLOGY

TECH SPENDING LESS VOLATILE THAN GENERAL ECONOMY

TECH STOCKS RECOVER MUCH FASTER THAN THE GENERAL ECONOMY

Certain data supplied by Sequoia, OECD Economic Office, Bloomberg Finance. The rest is our opinion, and does not represent advice or recommandations www.finatech.com Our rules: Invest on Fundamentals : Recession-proof business model Low overhead Tight cost control Defensible margins

Our rules: Invest on Fundamentals :

Recession-proof business model

Low overhead

Tight cost control

Defensible margins