(For an expanded version of this Market Update and graphs associated with it, click here.)

The performance of the controls industry in 2Q02 presents a muddled picture. The market price of the Control Engineering Index declined (10%) about as much as the Dow Jones Industrial Average (11%), but not quite as much as the Standard & Poor's 500 (13%). As would be expected by the poor showings of the dot coms and the tech sectors, the NASDAQ plummeted by 21%.

The market meltdown in July-right after 2Q02's results occurred-and the subsequent gyrations in August don't bode well for what these index may look like at the end of 3Q02. It can only be hoped that the investing world does what the experts, analysts, economists and just about everybody is saying to do: hold, hold, hold for the long run. It is not that the economy is doing badly. The buyers are still doing their job not only in general, but also in the controls industry as the earnings attest.

It looks like a wild ride for the rest of the year and holding on will provide thrills-and no doubt chills-not experienced for a long time.