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Trade Alert - January 6, 2008

Model Portfolio Allocation Changes- This Week

Models Turn Bearish

The model portfolios have both issued sell signals for all stock market index funds.

Portfolio Changes in the Performance Xtender: This model is selling the previous 40% position in International Large Cap stocks and putting the proceeds into money market. This will leave the portfolio with only a 10% remaining position in Precious Metals stocks and 10% in an Energy stock fund.

Portfolio Changes in the Max Xtender: This model is selling both of the 50% positions in an OTC Stock Fund and an International Stock Fund and putting the proceeds into money market funds.

Model Portfolio: Performance Xtender

SELL ___________ International Stock Fund

BUY ___________ Money Market Fund

 

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Model Portfolio: Max Xtender

SELL ___________ International Stock Fund

SELL ___________ OTC Stock Fund

BUY ___________ Money Market Fund

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TopNew Model Portfolio Allocations

These are the new generic portfolio allocations, reflecting the changes above ...

Model Portfolio: Performance Xtender

80%        Money Market Fund

10%        Energy Sector Fund

10%        Precious Metals Sector Fund

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Model Portfolio: Max Xtender

100%        Money Market Fund

 

 

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TopModel Portfolio Details

The tables below provide the percentage allocation details and mutual fund ticker symbols for investors following the Model Portfolios by using funds from either of the Rydex Investments or ProFunds mutual fund companies -- or alternatively, investors using exchange traded funds (ETFs).

'Performance Xtender'

(A model portfolio that invests selectively in stock market index funds, plus certain market sectors such as Energy, Gold and Real Estate, and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. The allocation mix is designed to beat the market significantly during both bull and bear markets with only limited risk of volatility.)


Model Portfolio Changes for this week Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
SELL International 40% RYEUX 40% UEPIX 40% IEV
Corporate Bonds, or
Money Market
Place proceeds in money market funds.

New Model Portfolio Allocations Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
Energy Sector Fund 10% RYEIX 10% ENPIX 10% XLE
Precious Metals Fund 10% RYPMX 10% PMPIX 10% GDX
Corporate Bonds, or
Money Market
80% Money Market Funds.


'Max Xtender'

(A model portfolio that invests selectively in stock market index funds and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. During strong market trends ... either bullish or bearish ... the model uses up to 2-to-1 leverage to magnify returns. The allocation mix is designed to beat the market substantially during both bull and bear markets but results in a relatively high risk of volatility.)


Model Portfolio Changes for this week Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
SELL International 50% RYEUX 50% UEPIX 50% IEV
SELL OTC Stock Fund 50% RYOCX 50% OTPIX 50% QQQQ
Corporate Bonds, or
Money Market
Place proceeds in money market funds.

New Model Portfolio Allocations Rydex Funds ProFunds ETFs
Allocation Ticker Allocation Ticker Allocation Ticker
International Fund 50% RYEUX 50% UEPIX 50% IEV
OTC Stock Fund 50% RYOCX 50% OTPIX 50% QQQQ
Corporate Bonds, or
Money Market

100% Money Market Funds.