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April 2005 Trade Alert!

April 21, 2005

We are making the trades in the Conservative portfolio, effective April 30th, 2005. 

Because of the relative complexity of these trades we have created an easy-to-use trade worksheet that subscribers who invest in the Conservative Portfolio can download, print out, and fill in to help them determine how much of their holdings need to be bought and sold to match our post-trade portfolios and to rebalance. You can download the <b>Conservative Portfolio Worksheet</b> by <a href="https://maxadvisor.com/newsletter/worksheets/conservative.worksheet.pdf">clicking here.</a> Please note that the document is an Adobe PDF. If you need to download Adobe reader, you can find it by <a href="http://www.adobe.com/products/acrobat/readstep2.html">clicking here</a>.

<b>Sales</b>

<ul><li><font color="red"><b>Decrease international bond allocation:</b></font> American Century International Bond (BEGBX) from 10% to 5% of total portfolio.

<li><font color="red"><b>Decrease utilities sector allocation:</b></font> American Century Utility Income (BULIX) from 10% to 5% of total portfolio.

<li><font color="red"><b>Sell entire international diversified allocation:</b></font> Forward International Small Companies (PISRX) from 5% to 0% of total portfolio.

<li><font color="red"><b>Decrease balanced fund allocation:</b></font> Bridgeway Balanced Fund (BRBPX) from 15% to 10% of total portfolio.</ul>

<b>Buys</b>

<ul><li><font color="green"><b>Buy new healthcare sector allocation:</b></font> Health Care Select SPDR (XLV) from 0% to 5% of total portfolio.

<li><font color="green"><b>Increase diversified bond allocation:</b></font> Harbor Bond (HABDX) from 15% to 25% of total portfolio.

<li><font color="green"><b>Buy new international stock allocation:</b></font> SSgA International Growth Opportunities (SINGX) from 0% to 5% of total portfolio.</ul>

<b>Portfolio After Trades</b>

<table width="369" border="1" bordercolor="black" cellspacing="0" cellpadding="2">

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>Category</b></font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>%</b></font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>Ticker</b></font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>Name</b></font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Diversified Bond</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">25%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">HABDX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Harbor Bond</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Intl. Bond</font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">BEGBX</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Am. Century Intl. Bond</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Short Term bond</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">30%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">VFSTX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Vanguard S.T. Corp.</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Healthcare </font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">XLV</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Health Care Select SPDR</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">High Yield Bond</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">VWEHX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Vanguard High-Yield Corp</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Utilities</font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">BULIX</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Am. Century Utility In.</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Larger Cap Value</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">10%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">VDIGX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Vanguard Dividend Growth</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Intl. Stock</font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">SINGX</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">SSgA Intl. Growth Op.</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Balanced</font></td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">10%</font></td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">BRBPX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Bridgeway Balanced Fund</font></td>

</tr>

</table>

<b>Why:</b> These are relatively minor changes and we're keeping our broad bond/stock allocations in our Conservative portfolio to 70% bond and 30% stock (adjusting for a balanced fund). 

We want even less exposure to foreign bonds as we feel the dollar's fall is largely over. We have made a good deal on foreign bond funds, riding them all the way up as the dollar has fallen near 50% against European currencies.

Large cap stocks are slightly more attractive to us than hot smaller cap stocks globally, so we are selling our position in Forward International Small Companies and replacing it with a fund that invests in mega-cap foreign stocks (SSgA International Opportunities).  We like healthcare funds given the long run of underperformance and are adding a stake here.

<b>Redemption fee information:</b> We have owned the funds we're selling for over twelve months so subscribers who purchased these holdings when at the same time we did are exempt from short term capital gains or redemption fees. Newer subscribers, however, may have bought at a later date. 

Three of the four funds we are selling do not have fund imposed redemption fees.

Forward International Small Companies (PISRX) recently imposed a new redemption fee. Subscribers who bought the fund before April 5th, 2005 face a 2% redemption fee if they sell within 60 days of buying. If you bought after this date you face a 2% fee if you sell within 180 days of purchase.

Please check with your broker if you do not buy directly from the funds to see if you are beyond the time period of any broker-imposed short term penalty fees before selling.

We are making trades in the Aggressive Growth portfolio, effective April 30th, 2005.

Because of the relative complexity of these trades we have created an easy-to-use trade worksheet that subscribers who invest in the Aggressive Growth Portfolio can download, print out, and fill in to help them determine how much of their holdings need to be bought and sold to match our post-trade portfolios and to rebalance. You can download the <b>Aggressive Growth Portfolio Worksheet</b> by <a href="https://maxadvisor.com/newsletter/worksheets/aggressivegrowth.worksheet.pdf">clicking here.</a> Please note that the document is an Adobe PDF. If you need to download Adobe reader, you can find it by <a href="http://www.adobe.com/products/acrobat/readstep2.html">clicking here</a>.

<b>Sales</b>

<ul><li><font color="red"><b>Sell entire short term global bond allocation:</b></font> Payden Global Short Bond (PYGSX) from 10% to 0% of total portfolio.

<li><font color="red"><b>Decrease Japan allocation:</b></font> T.Rowe Price Japan (PRJPX) from 10% to 5% of total portfolio.

<li><font color="red"><b>Decrease emerging market stock allocation:</b></font> SSgA Emerging Markets Fund (SSEMX) from 10% to 5% of total portfolio.

<li><font color="red"><b>Decrease international diversified allocation:</b></font> Artisan International Small Cap (ARTJX) from 10% to 5% of total portfolio.

<li><font color="red"><b>Sell entire telecom sector allocation:</b></font> Gabelli Global Telecom (GABTX) from 10% to 0% of total portfolio.</ul>

<b>Buys</b>

<ul><li><font color="green"><b>Buy new diversified bond allocation:</b></font> Harbor Bond (HABDX) from 0% to 5% of total portfolio.

<li><font color="green"><b>Buy new healthcare sector allocation:</b></font> Health Care Select SPDR (XLV) from 0% to 10% of total portfolio.

<li><font color="green"><b>Increase large cap blend allocation:</b></font> Bridgeway Blue-Chip 35 (BRLIX) from 20% to 35% of total portfolio.

<li><font color="green"><b>Buy new technology allocation:</b></font> Technology SPDR (XLK) from 0% to 5% of total portfolio.</ul>

<b>Portfolio After Trades</b>

<table width="369" border="1" bordercolor="black" cellspacing="0" cellpadding="2">

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>Category</b></font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>%</b></font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>Ticker</b></font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"><b>Name</b></font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Diversified Bond</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">HABDX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Harbor Bond</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Short Term Bond</font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">15%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">VFSTX</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Vanguard S.T. Corp.</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Healthcare</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">10%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif"> XLV</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Care Select SPDR</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Japan Stock</font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">PRJPX</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">T.Rowe Price Japan</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Em. Markets</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">SSEMX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">SSgA Em. Markets Fund</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Intl. Stock</font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">ARTJX</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Artisan Intl. Small Cap*</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Large Cap Blend</font></td>

<td bgcolor="#f0eec5" height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">35%</font></div>

</td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">BRLIX</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Bridgeway Blue-Chip 35</font></td>

</tr>

<tr height="20">

<td width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Mid Cap</font></td>

<td height="20">

<div align="right">

<font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">15%</font></div>

</td>

<td height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">FMIMX</font></td>

<td width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">FMI Common Stock*</font></td>

</tr>

<tr height="20">

<td bgcolor="#f0eec5" width="105" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Technology</font></td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">5%</font></td>

<td bgcolor="#f0eec5" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">XLK</font></td>

<td bgcolor="#f0eec5" width="163" height="20"><font size="2" face="Helvetica, Geneva, Arial, SunSans-Regular, sans-serif">Technology SPDR</font></td>

</tr>

</table>

*closed to new investors, see alternates on model portfolio allocation page

<b>Why:</b> We've increased our overall stock allocation to 80% from 75% and cut bonds down to 20% from 25% given the recent weakness in the market and strength in bonds. If the Dow falls well below 10,000 we will increase our stock allocation further.

We want less exposure to foreign bonds. While Payden Global Short Bond is hedged and global (and is therefore not a falling U.S. dollar play) we still want to lighten up as foreign bonds are not yielding much right now. 

Large cap stocks are slightly more attractive to us than hot smaller cap stocks globally, so we are selling down our position in Artisan International Small Cap (and those who bought Forward International Small Companies as a substitute should make the same adjustment). This also explains our increased exposure to Bridgeway Blue-Chip 35.

As noted in our last category outlook, we like healthcare funds given the long run of underperformance and are adding a stake here.

We've been writing for a few months how we think emerging markets are overheated. Our allocation cut to our hot emerging market fund above reflects that, as did our downgrade of the category in our last favorite funds report.

International stocks in general do not represent such a bargain as they did a few years ago when we loaded up on them. This explains our shaving down of our Japan fund and to some extent our global telecom fund.

<b>Redemption fee information:</b> We have owned the funds we're selling for over twelve months so subscribers who purchased these holdings when at the same time we did are exempt from short term capital gains or redemption fees. Newer subscribers, however, may have bought at a later date. 

Only one of the five funds we are selling does not have fund-imposed redemption fees.

Artisan International Small Companies has a 2%/90-day redemption fee.

Forward International Small Companies (PISRX), a substitute fund for the closed Artisan International Small Companies fund, recently imposed a new redemption fee. Subscribers who bought the fund before April 5th, 2005 face a 2% redemption fee if they sell within 60 days of buying. If you bought after this date you face a 2% fee if you sell within 180 days of purchase.

T. Rowe Price Japan (PRJPX) charges 2% if sold within 90 days of purchase.

SSgA Emerging Markets Fund (SSEMX) will levy a 2% fee for sales made within 60 days of purchase, as will Gabelli Global Telecom (GABTX).

Please check with your broker if you do not buy directly from the funds to see if you are beyond the time period of any broker-imposed short term penalty fees before selling.

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