Family Money: Investing Capital Part 3 - Models & Matrices

By Leslie Wright

Over the past fortnight we’ve looked at the investment criteria and parameters that have to be determined before a strategically balanced investment portfolio can be constructed: the client’s investment objectives; his risk-aversion profile; his base currency; his investment time frame; whether he will be an active or passive participant in the investment selection process.

Only after all the conditions discussed above have been clarified and agreed upon can one actually start constructing the portfolio.

Constructing a model

The technical term for what will be the proportion of cash to bonds to equities in any given portfolio is its “asset allocation matrix” or AAM for short.

Many investors take pot shots at markets, selecting a few blue-chip stocks, some bonds, a selection of unit trusts that seemed like a good bet at the time.

Even though this strategy might produce a good return, or not, this method rarely produces a strategically balanced portfolio, nor a truly diversified one.

“Diversification” is a term often misunderstood by investors. It does not mean some blue-chip stocks in their home market, plus a few bonds and some cash in the bank. It means having a flexible, strategically diversified mix of cash, bonds and equities spread around the world in the markets and sectors deemed most likely to produce the desired results in the short, medium, and longer term, and within the set parameters discussed earlier.

All other things being equal, a typical medium-risk ‘balanced’ portfolio would comprise perhaps 59% equities, 29% bonds, 9% cash & currencies, and 3% commodities, futures & options.

Flexibility is the key to success with such a strategically balanced portfolio. No element should be ‘locked in’ to the extent that it cannot be adjusted according to changing market conditions.

In a downturn one may wish to divest the equity holdings in favour of cash; at bottom, one may want to go back into equities again, to take advantage of the expected upturn. (Being able to identify the top and bottom is the tricky part, and another subject for another day.)

Having constructed the model AAM, the next step is to allocate resources from each asset-class section to particular preferences. In the 1980s managers would typically allocate a portion for the USA, some for the UK, for Europe, for Japan, and so on. Geographical allocation in other words.

With the advent of globalisation and multinational conglomerates diversifying into all areas of business, that ‘old’ model is no longer so applicable. Modern managers now tend to allocate portfolio resources more to sectors or ‘themes’ than to markets.

With the huge number of specialised funds available nowadays - more than 30,000 in the offshore sector, with more being added every day - one can select a fund which specialises in the sector you’re interested in, as well as the preferred geographical market.

For instance, you might wish to allocate 20% of your equity portion to Europe. Which stocks would you buy? Do you have the resources and access to the specialised information to research your choices? Few investors have either, even if they have the time and interest.

That is why I advocate using the resources of large financial services organisations who have teams of researchers & analysts working full time to pick winners. Such firms are the managers of multi-million dollar funds that permit relatively small investments to be diversified across a multitude of stocks, and in a highly cost-effective manner.

A given portfolio might comprise only 4 or 5 funds; it might constitute 25. The number would be determined by several factors, not least of which is the amount of capital available to spread the risk, and hence the investment vehicle most appropriate to the client’s particular needs and circumstances.

Another aspect to consider is the management style of each fund within a sector, and the parameters within which each fund manager has to operate - about which more shortly.

The relative volatility of each component fund would be explained; and the client then decides if he would have been happy with the performance, and the peaks and troughs. If not, the AAM is modified.

It is worth bearing in mind that up until last year, the previous several years had been a particularly good period for the major markets of the world. But after the downturn started some 18 months ago, exacerbated by the negative sentiment that dominated world markets in the first quarter of this year, one should perhaps expect more modest returns going forward.

If historically you were expecting 12~15%, now you should expect perhaps 8~10%. There has been a downturn in returns but not in volatility. If anything, in a period of uncertainty such as has prevailed this year, there is more volatility than in the ‘good’ times. And hence, a portfolio manager has to work harder to limit the losses and reduce this volatility to levels acceptable to his clients.

Of course, investment preferences of individual clients are noted when making the actual investment choices. A client might have strong views - either positive or negative - on certain markets or sectors, and these prejudices have to be borne in mind.

For instance, one might develop investment themes. If the client wants to pursue the demographic theme, the ever-ageing population would support pharmaceutical stocks and funds that invest in healthcare. Belief in the up-and-coming ubiquity of broadband and the ever-greater use of satellite communications and cell phones might lead one to invest in the telecommunications sector, or an over-weighting in technology (despite these two sectors’ significant drop over the past 18 months, which some argue has been a sentiment-driven overreaction.)

These themes would be included in the portfolio based partly on the preferences of the client, and partly on what leading institutional analysts believe are growth areas going forward.

The balance between these would depend on what had been agreed as to the client’s participatory input in the decision making process, and how much discretion had been allotted to the portfolio advisor.

But “going forward” are the key words here. Stellar performance last year of any particular geographical market or market sector is not necessarily an indicator of good performance continuing in that same market for the coming 6-12 months. In fact, rarely is past performance an indication of future performance.

Hedging the bets

There are literally hundreds of funds to choose from for any particular market, and even sectors within that market.

Going back to our example of wishing to hold 20% of your portfolio in European equities, one of the leading tracking services includes over 400 funds in the European equity sector alone. How do you choose the best ones to include in your portfolio? Past performance is the single criterion by which most amateur investors make this decision. That may be a good place to start - but it’s not the end of the story by any means.

One European equity fund may be required to invest not less than a minimum in each of the countries of Europe, while another may be required to invest not more than a certain maximum in any one country of Europe. This may seem a subtle difference, but in fact is a fundamental one. The management style - and hence the volatility and performance - will be quite different between these two funds.

A third may allow the manager more discretion to invest into quite narrow sectors, or pick stocks which he particularly favours. Such a fund may outperform the first two by a wide margin - or it may under perform. It will inherently tend to be more volatile in the short term.

It would make sense then to hedge your bets by including not just one but several funds for each sector you want to invest in, each perhaps managed in a different style.

The chances of undue volatility are reduced, while your chances of having picked a winner are increased.

In times of uncertainty, using several funds which can invest globally at the managers’ discretion, but managed in slightly different ways, serves to spread the risk and optimise your growth potential.

If the fund managers are doing their jobs correctly, they will buy into markets and sectors as they see opportunities arising in the short term, and sell out as they see peaks or danger signals. They have teams of analysts and economists to help them do this, and their very jobs (and income) depend on getting it right more often than they get it wrong.

This leaves the portfolio manager with the somewhat easier task of selecting the right funds for the markets & sectors to which he wishes to allocate portfolio resources, based on consistent above-average performance over several time periods, and lower-than-average volatility.

But even this task is no easy matter, and takes a great deal of time, experience, and access to a wealth of specialised information that is beyond the scope of most amateur investors.

You as an investor get to benefit from this expertise, and optimise your growth potential while minimising your risks. And at the end of the day, that is what capital investment is all about.

Are we special - or just defiant?

Bangkok has recently declared that closing hours for bars and nightclubs in Thailand will be shortened to 2:00 a.m. and law enforcement officials have orders to get tough with owners and managers who disobey the law. Mainly, this ‘get tough’ stance is aimed at the youth of the nation who are taking advantage of the former lax attitude of allowing juveniles to enter places that cater to more adult entertainment.

In the ‘old days’ there were few youths who had either the time or money to socialise in discos and clubs. Those young men and women from affluent families who frequented private clubs and the expensive hotel lounges were small in numbers and for the most part, educated, sophisticated, and when too drunk to walk, their family chauffeurs drove them home and tucked them safely into bed.

For the rest of the nation’s teenagers, the local noodle shop or the neighbourhood pool hall was usually the gathering place for young people who wanted to have a couple of bottles of beer and get silly together. One or two of the boys would bring guitars and drums and the group would sing and laugh and gossip all night. Perhaps one in the group would bring a bottle of cheap whiskey to share with friends…and occasionally a joint of ganja might be passed around if some were feeling especially brave. But mostly the atmosphere was friendly, happy and legal! And the village cops usually could keep things from getting out of hand just by making an appearance. Mostly the police would break up an illegal card game, or ask them to be quiet and let the neighbours sleep.

This scenario is still played out in most of the villages and small towns in the Kingdom. But like most countries in South East Asia, times here in Thailand have changed. Growing economies have produced more jobs for our young people, better communications and the high mobility of our work force has allowed them wider scope. Independence from their families and villages have exposed them to circumstances and values which are far different from those practiced in the simpler way of life in the countryside. And sadly, like most places in the world, there is an escalating drug problem here which involves dangerous and lethal substances.

Pattaya is probably the fastest growing city in Thailand. The cosmopolitan atmosphere of this resort town is in fact very different from that of all the other larger cities in Thailand. Thais have come here from every province in the nation for one reason or the other. Mostly for jobs. But many more also come to enjoy the holiday atmosphere and the rather laid back way the city manages to lope along, without too many rules and regulations to spoil the fun. We have ‘action’ in Pattaya…and the word is out.

Our city doesn’t have a very classy reputation. Let’s face it. Not in the foreign press, nor throughout the rest of Thailand. And that, dear readers, is a fact. Yes, it is true that Pattaya is a city with many faces. But one of those faces is twisted and ugly…and caters to the lowest and most base of human debauchery. Now, before the brickbats start flying, it is also true that there is nothing much original about the city’s sleazier aspects. I won’t list the famous red-light districts of the world here, for space does not permit. Pattaya is a party town. And much of the economy here is based on allowing people to come and enjoy themselves without being judged too harshly.

The recent crackdown and many police raids hitting nightspots which flaunt the new law has hurt the business community here which caters to adult entertainment. The nation’s economy has been limping along since the baht devaluation in 1997. Pattaya has managed to survive the economic crash of the region and actually thrive. Since we are classified as a ‘special’ district’ because of some peculiarities in Thai law, there is a contingent of people who’s livelihood, in one form or the other, is threatened by a rule which sweeps the nation without regard to special characteristics of locales.

Thais can be generally described as ‘long suffering’ and patient. But they are not doormats, as our history of coups d’etat give testimony. And one thing in Asia which has always been taboo: don’t break another person’s ‘rice bowl’. Thailand’s laws are hard to enforce sometimes because the people of this nation, no matter how soft spoken and compliant they may appear, can be as hard headed and stiff-necked as a German hausfrau who’s carpet has been muddied by a thoughtless ploughman’s boots. Laws can only work if the general population cooperates to obey them.

Pattaya is not only a ‘special district’. The mentality of the city is rather special too. If we are to get a dispensation for the 2:00 a.m. closing hour and the rest of the nation does not, there must be some changes made in the way we operate here. A standoff between the authorities and a small group of businessmen and their employees is one way to address the issue. But it won’t fix the problem. On the other hand, owners and managers can start policing themselves, and perhaps the negotiations already underway will have a happy ending for all.

by Lesley Warner

I would like to extend my Women at War stories for a bit longer, as I have found it very interesting reading about the brave and wonderful things that these woman have achieved. I am not in any way demeaning our brave men folk but they do generally get more coverage than us ladies. I would like to share some of my information about these amazing women with you and I hope you find it as interesting as I did.

Edith Cavell, the daughter of the rector of Swardeston, Norfolk, was born on 4 December 1865. Due to her strict and pious upbringing Edith was a brisk, businesslike and rather straight-laced woman, serious with a no-nonsense attitude but still well liked by all who knew her.

In 1907 after training as a nurse at London Hospital she became the matron of the Berkendael Medical Institute in Brussels. By 1911, she was training nurses for three hospitals, 24 schools and 13 kindergartens in Belgium.

When the Germans occupied Belgium in 1914, Berkendael became a Red Cross hospital for wounded soldiers regardless of their nationality. Edith was allowed to continue as Matron under German supervision.

Then, one September day in 1914, Herman Capiau, a young engineer from a village near Mons, arrived at Miss Cavell’s office, telling of a battle that had been fought at Mons in southwest Belgium. He explained that a number of Allied soldiers had been separated from their units in the confusion of the struggle, and sympathetic nuns and villagers had hidden them. As the Germans advanced, they were shooting not only any stragglers they found, but also the civilians who harbored them.

Two of these escaped soldiers were Colonel Bodger and Sergeant Meachin, both of the 1st Battalion, Cheshire Regiment. They had been taken to a temporary hospital in a convent at Wiheries, Belgium. But when their guards’ backs were turned, the two men had staggered out into the village under cover of darkness and hid in a disused building.

Capiau asked Edith to take in the two English soldiers. Colonel Bodger had been wounded in the leg and needed medical attention badly. The other, Sergeant Meachin, was still in relatively good health. Bodger and Meachin were the first of many soldiers that Edith helped.

Despite an order from the German authorities that anyone sheltering Allied troops would be shot, Edith’s secret work continued. She wrote to her cousin, “I am helping in ways I may not describe to you till we are free.”

The Germans grew suspicious, especially after they heard whispered reports of Edith’s Allied sympathies and actions.

Eventually on August 5, 1915, during the German occupation of Brussels, the Germans arrested her. They accused her of having sheltered 200 British, French, and Belgian soldiers in her house and for having helped them to escape from Belgium.

The American and Spanish ministers made unsuccessful appeals for postponement of her execution in Germany, and she was shot by a firing squad on October 12, 1915. The execution aroused widespread indignation. Vast multitudes attended her memorial service at Westminster Abbey, and a commemorative statue was erected in Saint Martin’s Place, Trafalgar Square, London.

Buried initially in Belgium, Edith’s body was exhumed after the war ended in 1918. A memorial service held 15 May 1919 in Westminster Palace was attended by King George V of England. Her final burial was at Norwich Cathedral, close to where she grew up as the daughter of the village vicar.

The statue in St. Martin’s Place, just off London’s Trafalgar Square, prominently displays words spoken by Edith: “Patriotism is not enough. I must have no hatred or bitterness for anyone.”

by Mirin MacCarthy

The first mention in historical writings about this fish was in 1840, but efforts to breed them in captivity did not really bear fruit until the later 1960’s. Their original home is the Rio Negro, a blackwater tributary of the Amazon system. Unlike many larger fish, they are probably the most peaceful fish for their size, common in the aquarium. At first limited to a few colors, thanks to the efforts of great Discus breeders Eduard Schmidt-Focke and Bernd Degen in Germany, the American Jack Wattley and now breeders in Hong Kong, Singapore, Thailand and Taiwan, many colors are now available.

Keeping Discus

Fortunately for us in Thailand, our climate makes it much easier then elsewhere, because in most of Thailand the average temperatures are just right almost all the time (but maybe not in the north). The ideal temperature should not be below 27 C.

The acidity/alkalinity for fish is important and a pH of 6 is ideal but 7 is acceptable, which is close to our local (Pattaya) water supply. Being a Regal Fish, they do like variety in their diet but that is no problem here either.

The Aquarium should not be too small for them, since they can grow quite large, especially in a large enclosure. The minimum size recommended is 130 litres but the larger the better if you like a greater number of Discus and some other smaller compatible fish, like Cardinals, etc., for more life and variety in your aquarium.

As far as a filter system is concerned, it is advisable not to use an under gravel type filter. In fact many breeders prefer no substrate and just some plants in pots, which makes cleaning much easier. Discus do like very clean water, free from pollutants; in fact some breeders do not use any filters and change most of the water daily.

Breeding

For many years breeding was a mystery, but it is no longer. Keeping Discus is not too difficult for someone with some past experience in fish keeping, but breeding is still the ultimate challenge. This is not “hit or miss”, but requires some study of the Discus and even more importantly hopefully finding a good breeding pair at a breeder in Bangkok, as well as a lot of patience and luck. The water quality is also of greater importance for breeding since the pH needs adjusting in Pattaya.

Locally we do have a shop in Naklua that usually has a good selection of Discus at reasonable prices, but they are not breeding pairs and in fact it is difficult to tell the boys and girls apart; however, if you are not contemplating breeding it will not matter.

As far as color is concerned, keep in mind that younger fish have not developed their full colors, and it may take up to 2 yrs. If taken good care of, you will gain much pleasure from your fish.

If you have any questions I can answer, you may email me [email protected]

by Richard Brunch

Once again the Internet World has found itself at the mercy of a warped mind; of course I refer to the perpetrator of the now infamous Nimda worm. Did your systems become infected? And if they did have they recovered yet? The worm spread like wildfire, and its effects were experienced first hand by far more Internet users than felt the Code Red worm and its subsequent variations. As it now turns out even after removal of Code Red, some remnants are left behind and Nimda first actively sought out systems that had previously been infected with Code Red, exploiting its loophole. Worse still, Nimda leaves an infected but ‘cleaned’ system wide open to anyone who wants to connect to it. Nimda maps, shares and enables the Guest account and makes the account a member of the Administrators group, ‘game set and match’.

Although the Anti-Virus software companies have released patches for both Code Red and Nimda and these appear in the first instance to work, in practice it has been found that the systems are left vulnerable and unstable and from our own company’s experience the only way to return the system to its pre-infection state is to do a clean install of the operating system. Also, infected systems make their IP addresses known by trying to infect other systems, and the unscrupulous invaders are aware of this. So whilst a system is infected with Nimda, anyone could have connected to that system and inserted back doors or obtained proprietary data from the network. Without detailed system auditing in place that tracks all changes so that they can be reversed then it would be prudent to completely reinstall the operating system to be certain network integrity has been restored.

It would also be wise to change usernames and passwords. Whilst this may seem a bit drastic it has proved to be the quickest, most reliable and cost effective solution available. For many companies after the initial worry that their system has been breached, the problem has been the lack of skilled manpower to deal with the problem in what most IT managers would deem an acceptable time frame. It is essential that systems are updated with the latest patches and configuration recommendations so that the risk of worms like Nimda infecting systems is reduced and hopefully negated.

Microsoft has a feature rich website full of tools, checklists and updates that assist in the security of systems. The web page contains six checklists, three security updates, and nine tools. The checklists cover such topics as Windows NT, IIS, and DC configurations; the security updates are for both Office and Outlook. These tools are invaluable and highly recommended, look at http://www.microsoft.com/technet/security/tools/tools.asp for full details.

Even sites and systems which themselves have not been infected by Nimda are experiencing network problems from the worm because of the increased amount of traffic that infected sites generate. Worms like Code Red and Nimda demonstrate how poor levels of security on one network can quickly wreak havoc on another network. It also shows the need to remain abreast of security briefs and updates on a daily basis.

Send your questions or comments to the Pattaya Mail at 370/7-8 Pattaya Second Road, Pattaya City, 20260 or fax to 038 427 596 or e-mail to [email protected]

The views and comments expressed within this column are not necessarily those of the writer or Pattaya Mail Publishing. Richard Bunch is managing director of Action Computer Technologies Co., Ltd. For further information, please telephone 01 782 4829, fax 038 716 816, e-mail: [email protected] or see the firm’s website www.act.co.th

by Duncan Stearn

Part Four: The controversial battle of Koh Chang

On January 14, 1941, the naval battle of Koh Chang took place. The details of the battle, an undisputed victory for the French, are controversial, with both sides offering almost diametrically opposed versions. The French claimed to have sunk or destroyed no less than five Thai warships while the Thais allege they lost only two.

Indeed, there is even disagreement about the date of the battle. It has been claimed that the battle occurred on January 17, not 14, with consensus divided on the date.

The French squadron consisted of the light cruiser Lamotte-Picquet (the flagship commanded by Captain Berenger) and four sloops, two of them quite ancient.

The battle began when a French seaplane found a section of the Thai fleet, consisting of two coast defence ships (HTMS Ayutthaya and HTMS Thonburi), two sloops, four torpedo boats, two minesweepers and a patrol boat, anchored off Koh Chang and attacked them.

Berenger then led his ships against the Thai vessels in an action that commenced near dawn and lasted around an hour before the French withdrew - according to them - unscathed.

The French alleged that their flagship had struck the Ayutthaya with a torpedo and, heavily damaged by gunfire, she was beached by her crew on the mainland. The Lamotte-Picquet severely damaged a Thai torpedo boat, which later sank, before sinking two other torpedo boats.

Berenger’s squadron turned all their guns against the Thonburi and claimed to have sunk the vessel.

The squadron, its mission accomplished, began to sail back to the relative safety of French-controlled southern Vietnam but came under Thai aerial attack, which they managed to beat off with anti-aircraft fire.

The Thai version of events is somewhat different. The action opened with the French concentrating their initial salvoes on the two Thai torpedo boats anchored near the approach to Koh Chang. These two vessels were overwhelmed by gunfire and sunk. The Thonburi began returning fire some 15 minutes after the French began their attack while the remainder of the fleet, caught by surprise, began to raise steam with the aim of sailing out to battle.

The Thonburi, struck by French shells, began to burn and, suffering from serious flooding, was beached. However, the remainder of the Thai squadron began to engage the French.

The Ayutthaya fired on the French cruiser Lamotte Picquet while two Thai torpedo boats engaged two of the French sloops. The Ayutthaya claimed to have scored a direct hit on the French flagship, penetrating the engine room.

Faced with a Thai force now ready to engage at closer quarters and with his flagship hit, the French commander broke off the action and began to withdraw.

Following the battle, the crew of the Thonburi put out the fires on their ship and refloated her with the aid of the Thai navy oiler.

The oiler towed the Thonburi back to Bangkok where she entered dock for repairs. The ship eventually became an accommodation hulk in Bangkok before being scrapped in 1956.

In reality, the Ayutthaya received only superficial damage and was eventually sunk by Thai planes during the abortive coup of 1951. Two of the torpedo boats allegedly sunk by the French in fact remained in service until 1976.

The French victory was their first against an opponent of equal strength since 1781 when they defeated the British in the second battle of the Capes during the American War of Independence.

by Anchalee Kaewmanee

Thankfully, a Taurus Moon stabilises the Gemini flightiness. No matter how far out this sign may seem sometimes, natives of this combination never actually lose their underlying emotional stability and direction. That Gemini personality might get them into situations they’d rather forget. No doubt about it. But that determined Taurean inner nature keeps them bouncing back, fresh and ready to take on new challenges.

Ideally this is the combination of one who can bring original and innovative ideas into reality. Unfortunately, many Gemini-Taureans have trouble learning from their past mistakes. Because both signs are Spring signs, these people may have trouble relinquishing their childhood behaviour patterns. They always retain their youth, both in looks and manner. This makes it particularly difficult for them to shake off ties with their childhood. These people are often super sensitive, with the feelings of a child. Slow to mature, this childish temperament will appear less attractive with age.

The Taurus Moon gives a strong need for security, but that adventurous Gemini Sun, the basic nature, often undermines this quest. Even when these individuals feel they have finally found their anchor - a job, home, spouse - it may not be long before they yearn for something else. For better or for worse, these people never seem to be fully satisfied. Curiosity and the need for change often force them to abandon what they have worked so hard to establish. It would be better if they learned to stifle some of those impulses.

That constant craving for variety and adventure makes life eventful, to say the least. But often in the end, these natives have little to look back upon. Wiser for them to learn to respect their own achievements, even if they do seem to come quickly and easily.

Personality in the Gemini-Taurus is a strong point. Working their way into the affections of the coldest person is child’s play to this combo. The quick wit and buoyant spirits cheer and inspire all of those who come into the sphere of these effervescent natives. This Sun/Moon sign suggests upward mobility and sophistication, no matter what the background. Natives in this group will have risen above any disadvantages associated with humble beginnings. An innate sense of pride and dignity sets them apart from the crowd.

The analytical Gemini mind is complimented here by a kind and compassionate emotional nature. The Gemini-Taurus is often everyone’s amateur psychologist, offering advice which is practical and worldly-wise. Versatile and intelligent, these individuals have many talents which can be applied in various fields.

The Gemini needs to communicate and the Taurus has a sense of form, structure and aesthetics which can be combined in professions such as architecture, writing and music. The famous architect, Frank Lloyd Wright and Bob Dylan are two examples of people born into the Sun/Moon sign of Gemini-Taurus.

The insight which is so inherent in this combination can be put to use in psychology, social service and human relations. Excellent at managing and organising, there is also a business and marketing aptitude commonly found in natives of this sign.

Staying socially active is as necessary to this group as is oxygen and nourishment. Variety and excitement are vital to these people. Withdrawal or isolation can be very dangerous to their psychological health. They need people around them so they can share their thoughts and feelings. Romantic souls, natives of this sign have a strong need to be loved and appreciated. It is important that they find a partner who can share their interests, fan those intellectual fires, and most of all, satisfy their need for diversity. Stuck in a boring marriage or love relationship, the Gemini-Taurus will feel no compulsion toward fidelity. The Taurus Moon demands security, so perhaps these natives may try to sick it out for materialistic reasons. On the other hand, the Gemini nature could merrily walk out the door without even packing a suitcase.

by Apichart Panyadee

To a large extent eclectic or improved designs are not relevant to copies, or even to the fake or ‘married’ piece. However, it is important for collectors to keep in mind an image of the pure earlier styles so that any obvious move away from the earlier period can be spotted quickly and identified.

A thorough knowledge of the development of styles is therefore useful, if not essential. So many collectors fall into the trap of buying a ‘Louis XV’ piece that is clearly 19th century in origin and concept. They do this, not because of some highly technical construction details, but because they simply miss the fact that the item does not follow the form of an 18th century piece.

This fine copy of an original Louis XVI commode is housed in the Victoria and Albert Museum in London. Only the marble top is different from an original of the period and is not deemed a fake at the time of making.

An example of this confusion would be an item which had a Louis XV form adapted for 20th century use. In this case the principles of the design are of the 18th century but the proportions and lines will not be of that earlier period.

An original Louis XVI commode is topped by the fine white Carrara marble which was so popular in this period.

If the categorisation of eclectic or improved pieces is at first daunting, the overall rule is to think of proportion and a sense of the changes going on socially in Europe at the time can be a source of simple common sense. The great houses of Europe were built smaller, so the scale of the furniture to go into them was proportionately reduced. Town houses in Paris and other capital cities followed this trend by the 19th century and, with the growth of the population and the emergence of a new middle class, the shortage of space for housing became more acute. Families increasingly began to live in apartments rather than houses. The consequent reduced scale of a piece of furniture is an immediate tell-tale sign, and is sufficient to at least arouse suspicions and initiate a detailed examination of the article.

Proportion is always a key. It is vital to the definition and distinction of a reproduction piece. The word ‘copy’ implies an exact replica in size and detail. A ‘reproduction’, on the other hand, implies a copy, but without necessarily keeping to the exact size and often skimps in detail in order to keep the costs down. There are many items on the market which will be reproductions of earlier pieces which will also show identical forms but will differ in finish and quality. To put a finer point on this subject, a commode of the 1860-80 period is larger and of far better quality. A piece made in the early quarter of the 20th century will necessarily be a smaller piece and less attention will be paid to detail. The quality will almost always reflect the true period in which it was manufactured. This is not always a hard and fast rule with every item of furniture available on the market...and to use it as such can also lead unwary collectors into a trap. It is only a useful reminder.

by Marion

In times of appalling inhumanity to man, where does our compassion go? Does love and brotherhood fly shattered out the window with the terrorist planes? Does our own remnant humanity and connectedness to the entire human race, “no matter what tribe they were born into,” drift away into the air with the fumes from the gas ovens?

There have been mixed reactions, some terrible, some courageous to the appalling Tuesday 11th terrorists attacks in the U.S., and I quote, “America is just getting what it deserves, it is always manipulating other people’s wars!” “There will be vengeance, there will be a military strike against those responsible.” “We the people of America are prepared for war.” “The Muslim religion is the most bloody, fanatical, murderously aggressive and evil of the world’s religions.” “The world has lost the hope of a peaceful future.” “The thing to be thankful for is that at least we are not in New York!” “Misguided craven cowards have debased the nobleness of mankind.” “When I left New York years ago, I met the elder President Bush’s educational adviser in Washington DC and attended a Humanistic Psychology conference with him as colleague. It gives a very surreal feel to the whole debacle and suddenly makes me feel old!”

Then there have been the ultimate acts of bravery and sacrifice, firemen and policemen and medics and U.S. pilots dying to save others, people queuing for hours to give blood, many others helping, many others praying, multitudes grieving. Let us all wish that the collective energy and action and all thoughts expended over this gross inhumanity, now and in the years to come, be positive and healing, not negative.

Jack Kornfield says it all about compassion and emotional healing, and even a way to create serenity and balance in the chaos and confusion of our Western lives in his book, “A Path With Heart, A Guide Through the Perils and Promises of Spiritual Life” (1SBN 0-7126-7430-6). It is not only inspirational, it has humour, insight, clarity and distilled genius. This is a prayer or meditation, if you will, that I have taken from his book:

“May you and I and the entire Universe be filled with loving-kindness.
May you and I and the entire Universe be well.
May you and I and the entire Universe be peaceful and at ease.
May you and I and the entire Universe be happy.
May you and I and the entire Universe give up the fight.
May you and I and the entire Universe find forgiveness.
May you and I and the entire Universe find connection in the present moment.”

In his first chapter “Did I love well?” Kornfield states simply that this is the question we will ask ourselves at the end of our lives. “Not what fortune did I amass but, did I love well?”

“In undertaking a spiritual life, what matters is simple: we must make certain that our path is connected with our heart,” says Kornfield.

“The longing for love and the movement of love is underneath all of our activities. The happiness we discover in life is not about possessing or owning or even understanding. Instead it is the discovery of this capacity to love, to have a loving, free, and wise relationship with all of life. Such love is not possessive but arises out of a sense of our own well-being and connection with everything. Therefore it is generous and wakeful, and it loves the freedom of all things. Out of love, our path can lead us to learn to use our gifts to heal and to serve, to create peace around us, to honour the sacred in life, to bless whatever we encounter, and to wish all beings well.”

“Spiritual life may seem complicated, but in essence it is not. We can find a clarity and simplicity even in the midst of this complex world when we discover that the quality of heart we bring to life is what matters most.”

In his second chapter, “Stopping the War”, Kornfield speaks poignantly about stopping the war with ourselves. “Our war against life is expressed in every dimension of our experience, inner and outer. Our children see, on average, eighteen thousand murders and violent acts on TV before they finish high school. The leading cause of injury for American women is beatings by the men they live with. We carry on wars within ourselves, with our families and communities, among races and nations worldwide. The wars between peoples are a reflection of our own inner conflicts and fear.”

“In a society that almost demands life at double time, speed and addictions numb us to our own experience. Not only have individuals lost their sense of interconnection, this isolation is the sorrow and conflict of nations as well. We have had 115 wars since World War II and there are only 165 countries in the entire world.”

“When we step out of the battle... we see how each of us creates conflict. We see our constant likes and dislikes, the fight to resist all that frightens us. We see our own prejudice, greed and territoriality. All of this is hard to look at but it is really there. When we let go of the battles and open our heart to things as they really are, then we come to rest in the present moment. This is the beginning and the end of spiritual practice. Only in this moment can we discover that which is timeless. Only here can we find the love that we seek. Love in the past is simply memory, love in the future is fantasy. Only in the reality of the present can we love, can we awaken, can we find peace and understanding and connection with ourselves and the world.”

Individually and as a society, we must move from the pain of our speed, our addictions, and our denial to stop the war, this is a task for all of us. Compassion and a greatness of heart arise whenever we stop the war. The deepest desire we hold is to discover how to do this. We all share a longing to go beyond the confines of our own fear or anger or addiction, to connect with something greater than “I,” “me,” “mine,” greater than our small story and our small self. It is possible to stop the war and come into the timeless present - to touch a great ground of being that contains all things. This is the purpose of spiritual discipline and choosing a path with heart - to discover peace and connectedness in ourselves and to stop the war in us and around us.”

Jack Kornfield spent ten years as a Buddhist monk in Thailand; he is a great teacher, psychologist and meditation master of international renown and a marvellous storyteller. His is indeed a precious book of simplicity, wisdom and compassion. May the entire world take it to heart.

by C. Schloemer

Good Points: beautiful, easy to train, excellent watchdog, good with other animals and people, suitable as a pet.

Take heed: no drawbacks known, but this is a big dog and needs room.

A handsome, long haired, sturdily built dog, the Bernese Mountain Dog is jet black in colour, with rich russet markings on his legs, cheeks, spots over each eye, and on either side of the snowy white chest markings. A white blaze adorns his muzzle and forehead, and it is highly desirable that the dog has white feet. This breed is the most internationally known of the four Swiss Mountain dogs, the others being the Great Swiss Sennenhund, the Appenzeil Sennenhund, and the Entiebuch Sennenhund. It is used as both a draught dog and companion in its country of origin.

Despite its size and strength, this breed is easy to train and has a lovely nature. The Bernese is loyal and affectionate with both people and other animals. A country home or farm is ideal for this dog, since its great size requires lots of room. A fine watchdog and family pet, this breed is also gaining popularity in many countries other than Switzerland. Its docile nature and beautiful appearance makes it a natural in the show ring.

Size: dog 63.5 cm, bitch 58.5 cm

Exercise: Needs a reasonable amount of exercise. The Bernese is not really suitable to town life, and definitely not for owners who live in small townhouses or apartments.

Grooming: Fortunately, the Bernese’s beautiful coat needs only daily brushing to keep it in good condition

Origin and history: Aristocratic in appearance, and ancient in lineage, the Bernese Mountain Dog has long been at home in farms in the middle land of Switzerland. Used as draught dogs, many pulled milk carts. The ancestors of these dogs were brought into Switzerland over two thousand years ago by the invading Roman soldiers. In 1892 the Swiss fancier, Franz Schertenleib rehabilitated the breeding stock, and a speciality club was formed in 1907 which established successful breeding standards. Since the Bernese Mountain Dog has Mastiff characteristics, it is believed their lineage may descend from the Molossian. The St Bernard, Rottweiler, and Newfoundland are also related to the Sennenhunds.

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