April 3rd 2009
The first order of business is that all client accounts are fully invested.

The second order is the investment climate. Almost 100% of indicators and analysts concur that we are in a "bear market rally". That means that this is a temporary rally for a month or two before the second big, calamitous downturn in the market occurs. We want to be ready for both.

Most accounts have a mix of stock funds and bond funds, and for good reason.

We appreciate our clients' loyalty and understanding through some of the worst times in the history of the stock market.

Now for the good news!

We will be using two market tools that are expected to enhance client portfolios going forward:

The first is the market forecast system that has SIGNALED EVERY MAJOR MARKET TURN SINCE 1991! It will be known as our SMARTSTOX strategy.

The second is a bond market forecast system that has signaled the correct calls on the high yield and US Government bond funds for more than 20 years now. It will be known as our BONDFLEX strategy.

Those signals provided positive returns, even in high yield bond funds that lost 24% last year on a buy and hold.

We are excited going forward that we will be adding value to your accounts in the most efficient manner.

Sincerely,
Carl Gill
Asset Advisors