7 - vulnerable to inflation and cyclical fluctuations. I have already pointed out the significance of Utah's huge reserves of natural resources as a hedge against inflation, and its long-term sales contracts with good price protection. But it is also worth pointing out that our movement into service businesses, with their better ability to recover costs quickly, also improves our ability to cope with inflation. As to cyclicality General Electric was already sufficiently diversified in 1966 to afford unusual stability. Consumer spending, housing, industrial, utility, and defense spending these peak at different times, and usually help us smooth out the cycles. Add to this the service businesses, especially repair services which actually do best during a recession when industry and consumer alike are trying to make do with old equipment. And our sales in many different countries also provide opportunities to offset the cycles. For example, when U.S. orders for gas turbines dried up during the recession, the business was sustained by increased export sales. CONTAINMENT AND DIVERSIFICATION OF RISKS Another very significant development since 1966 is our containment and diversification of risks. Back in 1966, you'll remember, most of the Company's growth resources were concentrated on three major ventures: computers, jet engines, and nuclear energy. And they were losing a lot of money. Since then we sold off the computer business, and have deliberately diversified our risks, made them more manageable, and moved promptly to dispose of losers. I have mentioned our successful ventures in service and materials businesses and commercial