Welcome to the MONEYLETTER Hotline for March 26, 2008

The Fed has pulled out all the stops, and the global financial world realizes that the Fed is prepared to do whatever it takes to keep the economy afloat. Other central banks are taking note, and Britain's chief central banker is sounding like Bernanke. As the credit crisis recedes some, attention will turn to the economic fundamentals, and they are not pretty as we end the first quarter.

As we have said (referring to the stock market) we are going through the worst now, and the same applies to the economy. The stimulus package with the rebate checks will kick in shortly, and that will make a big difference, but while waiting the economic numbers are going to be quite mixed. The public is increasingly pessimistic, as the economic sluggishness is having its effect, and business has clearly taken a wait-and-see attitude. Business should be spending but it has become hesitant.

We believe that much will clear up as we go through the rest of this year. The combination of the Fed's interest rate cuts and the stimulus package should keep the recession, or whatever, mild. If it does, we look for the bottoming process in both the economy and the market to be resolved. We continue to see equities as the asset of choice in this environment. We counsel patience.

There is no change in our current allocations.

New Fund Ratings – For domestic stock funds, Laudus Rosenberg Value Long/Short is now rated Buy. Five funds are now rated Hold: Holmes Growth, Fidelity Convertible Securities, Brandywine Blue, Neuberger, Berman Partners, and Bridgeway Aggressive Investors 2. Five funds are now rated Sell: Spectra N, Vanguard Growth Equity, Fidelity Trend, Brandywine Advisors, and Kinetics Paradigm. For international stock funds, four funds are now rated Sell: Guinness Atkinson China & Hong Kong, T. Rowe Price New Asia, FTSE Xinhua China 25 (ETF), and U.S. Global Investors China Region Opportunity.

Vanguard Growth Equity is in all three Vanguard-only portfolios. We will substitute Vanguard Dividend Appreciation Index for the fund in all three portfolios. Fidelity Trend is in all three Fidelity-only portfolios. In the Venturesome and Moderate portfolios we will switch the fund into Fidelity Fund. In the Fidelity Conservative portfolio we will switch into Fidelity Blue Chip Growth. T. Rowe Price New Asia is in the Moneyletter Venturesome and Moderate portfolios. In both cases we will switch the fund into Wintergreen Fund.

The Economy – Today's durable goods number was disappointing. Business spending has to pick up. We believe it will as the stimulus kicks in. We expect policy will work to stimulate business spending if remains flat.

The Stock Market – Stocks are performing reasonably well considering the investment environment. We see the Bear Stearns settlement as the key factor in restoring calm. We believe the intense volatility of the past weeks will lessen as we move ahead now.

The Bond Market --

The Select Portfolio – There is no change for this portfolio.

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