THE ECONOMY AND VALUE LINE'S MARKET STRATEGY
First , read Value Line's current summary and opinion of the economy, the stock market, and advisable investment strategy entitled `"The Value Line Equity View" in Selection &Opinion.
Remember that it is not necessary for the ordinary investor, who usually has other business interests, to read everything that is published. The service is so organized that it can also be used as a reference. You can look in the Summary & Index every week to find updated references about stocks that you own or in which you may be interested. The stock ranks also provide you with buy and sell recommendations, which you may act upon.

We must caution that a prudent investor ought to think of stocks as components of a portfolio, rather than as single entities. Diversification reduces the overall risk of stocks within a portfolio to below that involved in holding one single stock. Diversification is an important advantage, long recognized by sophisticated investors, yet often ignored by many who think in terms of single stocks without reference to the portfolio as a whole.

TIMELY INDUSTRIES
Second, look at the industries ranked in order of Timeliness in the screen on page 24 of the weekly Summary &Index. To be sure that your portfolio is diversified, pick from that list at least six industries shown to be most timely—i.e., those industries ranked one through six.

TIMELY STOCKS
Third, look to the 100 stocks ranked 1 (Highest) and the 300 ranked 2 (Above Average) for Timeliness. These ranks for relative performance for the next six to 12 months appear in both Ratings& Reportsand in the weekly Summary &Index. (Once a stock ranked 1 or 2 for Timeliness has been bought, it may be held until its rank drops to a 3, 4, or 5.)

TIMELY STOCKS WITHING TIMELY INDUSTRIES
Fourth, pick at least six or more stocks that are in the top six industries. Then, if possible, pick at least four or more stocks—either those that also have Safety ranks of 1 or 2 and are within the top 12 industries or those that are ranked 1 or 2 for Timeliness or Safety, even though the industry isn't top ranked. To narrow the list, follow steps five through seven. Remember that the suggested diversification is ten or more stocks.

THE BIG PICTURE
Fifth, read the industry comments that precede the stock report to see the big picture of the long-term growth patterns of earnings and values for stocks in the industries you are interested in.

SAFETY CONSTRAINTS
Sixth, from the stocks selected so far, choose those that also conform to your Safety requirements.

If you are a conservative investor, or if you think the market is headed lower, give preference to stocks ranked 1 or 2 for Safety.

If you are bullish on the market and are willing to buy more volatile, or riskier, stocks, accept those with lower Safety rankings from 3 down to 5.

A low Safety rank may be acceptable when the market is undervalued. At such a time, riskier stocks are usually depressed. Since they are apt to be more volatile, they are capable of rising faster when confidence in the market is restored.

DIVIDEND REQUIREMENTS
Seventh, select from the remaining choices stocks that meet your current dividend requirements. Dividends for the coming year are shown in the Summary & Index and on Ratings& Reportspages, as well as in many screens and articles that appear in Selection & Opinion. Bear in mind that it may be difficult to find a stock that is ideal on all counts. It may be necessary to trade off, accepting a lower Timeliness or Safety rank, or a lower dividend yield, depending upon the relative importance of your various goals. For example, conservative investors may at times have to select stocks ranked 3 for either Safety or Timeliness.