Houston, Texas, December 1, 2008 - November 2008 was nearly as swinging as October and nearly as negative as well. Bonds and liquidity securities managed to eke out gains while equities again took heavy losses. The traditional investment grade U.S. capital markets decreased by 3.97% as they shed $1.14 trillion to close November valued at $27.53 trillion.

Equity securities have their third straight month with over $1 trillion in losses. The 12.72% decline in November, a loss of $1.47 trillion, brings the total decline in the last three months to $4.86 trillion. While all sectors were down in November, the Manufacturing & Wholesale Trade and the Finance, Insurance, & Real-estate sectors were again the places for the worst performers with monthly declines of 12% and almost 16% respectively. The equity markets now account for 36.68% of the traditional investment grade U.S. capital markets, its lowest portion since August 1992. Since the high point of $18.17 trillion in October of 2007, the equity market has lost 44% of its value and ends November at $10.10 trillion.

Short-term government issues in the form of Treasury bills and short-term federal agency securities lead the way into positive territory for liquidity securities. The market for Treasury bills grew by 5% by adding nearly $95 billion. What appeared to be explosive growth of over $165 billion for short-term federal agency securities was really the result of a mass transfer from long-term to short-term classification. These two markets combined with 4% growth in the market for commercial paper to offset over $157 billion decline in the market for certificates of deposit. The CD market, which is a measure of the market for large time deposits, has been declining in size the last six months with over a third of the nearly $440 billion total decline occurring in November. With 1.96% growth in November to a value of $7.70 trillion, liquidity securities now account for 27.99% of the traditional investment grade U.S. capital markets.

Aside from the previously mentioned movement of federal agency securities, the other portions of the long-term investment grade bond markets gained between 3.9% and 4.5% in November. The agency securities kept total growth to $185 billion, a rate of 1.94%, to reach $9.73 trillion in size and account for 35.33% of the traditional investment grade U.S. capital markets. A year ago the markets were valued at $33.53 trillion with the equity, liquidity, and bond market proportions of 52.70%, 19.59%, and 27.71% respectively

Dorchester's flagship index, CPMKTS^sm The Capital Markets Index, is carried on The American Stock Exchange under the symbol CPMKTS, with updates every 15 seconds. The Amex also publishes the component indexes: CPMKTE^sm The Capital Markets Equity Index, CPMKTB^sm The Capital Markets Bond Index, CPMKTL^sm The Capital Markets Liquidity Index, CPMKTC^sm The Capital Markets Corporate Bond Index (with yield published in real-time under ticker: CPCYLD), CPMKTM^sm The Capital Markets Mortgage-backed Index, and CPMKTT^sm The Capital Markets Treasury Bond Index (with yield published in real-time under ticker: CPTYLD).

About Dorchester Capital Management LLC.
Dorchester Capital Management LLC is a Houston-based company principally focused on designing financial products for the professional investment community. Dorchester’s unique approach to processing, organizing and standardizing capital markets data from the broadest variety of sources gives it a superior ability to help clients with the fundamental risk analysis questions of asset allocation and benchmarking. For additional information, please visit the company's Web site at www.cpmkts.com.

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