Welcome to the August 20, 2008 issue

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Because of the size of the new advice this week, we are limiting our commentary. Our investment view has not changed. We believe that equities are the asset of choice.

There is no change in our recommended allocations

New Fund Ratings – For domestic stock funds, three funds are now rated Buy: Aston/TAMRO Small Cap N, S&P 600 Small Cap Growth (ETF) and WHG SmidCap. Six funds are now rated Hold: CGM Focus, Royce Value, Hussman Strategic Growth, Janus Twenty, Wells Fargo Advantage Discovery and Vanguard PRIMECAP. Nine funds are now rated Sell: Royce Low Priced Stock, American Century Heritage, Janus Orion, Oakmark Equity & Income, Fidelity Leveraged Company, Jordan Opportunity, Fidelity Independence, Laudus Rosenburg Value L/S and Bridgeway Aggressive Investors 2. For international stock funds, three funds are now rated Hold: UMB Scout International, Harbor International and T. Rowe Price Latin America. Four funds are now rated Sell: Emerging Markets 50 ADR (ETF), MSCI Emerging Markets (ETF), Vanguard Emerging Markets ETF and Vanguard Emerging Markets Stock Index. There are no other changes.

Janus Orion is in he Moneyletter Moderate portfolio. We will switch the fund into Royce Special Equity. Fidelity Leveraged Company is in all three Fidelity family portfolios. In the Venturesome and Moderate portfolios we will switch the fund into Fidelity OTC Portfolio. In the Conservative portfolio the switch will be into Fidelity Value. Jordan Opportunity is in the Moneyletter Venturesome and Moderate portfolios. In both cases we will switch the fund into Berwyn Fund. Fidelity Independence is in the Fidelity Venturesome and Moderate portfolios as well as the Moneyletter Venturesome portfolio. In the Moneyletter portfolio the switch will be into Russell 2000 Value (ETF). In the Fidelity portfolios, the switch will be into Fidelity Blue Chip Growth. Emerging Markets 50 ADR is in the Moneyletter Moderate portfolio. It will be switched into T. Rowe Price Global Stock. Vanguard Emerging Markets is in the Vanguard family Venturesome and Moderate portfolios. In both cases, the switch will be into Vanguard Global Equity.

The Stock Market –

Bond Market –

The Select Portfolio – There are no changes for this portfolio.

The next Hotline is scheduled for Wednesday, August 27th at 7pm.

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