In this Issue:
• Trim Domestic Stock Exposure- We now see the S&P 500 ending this year not much higher than where it began 2005. Next year, we expect only modest gains.
• In the Limelight
• STARS Status - Changes in S&P analysts' STARS rankings for October 17 through October 21.
• Some Top Picks with Attractive Yields- For potentially superior total return, we think investors should consider stocks with a five-STARS ranking and an above-average yield. Here are a couple of our favorites.
• Three Recent Upgrades- Our analysts recently upgraded the shares of these companies to four or five STARS for expected outperformance in the coming year.
• Federated Deal Alters Retail Landscape- Our analysts looked for the winners and losers among vendors that cater to a shrinking number of major department stores.
• Master List Stocks Update- Our three Master List groups of stocks, recommended as core holdings for long-term investors, are regularly featured on these two pages. Group 2, highlighted this week, consists of stocks we like for total return.
• S&P's Platinum Portfolio

Some of the Companies Featured:
Alaska Air Group
Allstate Corp.
American Standard
Amgen
Aqua America Inc.
Atwood Oceanics
Bank of New York
Barr Pharmaceuticals
Chevron Corp.
Colgate-Palmolive Co.
Cow Corp.
Dow Chemical Co.
Encana Corp.
FPL Group
McDonald's
Mellon Financial
National City
Packateer Inc.
Patterson Cos.
Sunstone Hotel Investors Inc.
XTO Energy
Yahoo Inc.

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