Home page Company name and slogan

To prevent this e-mail from being delivered to your bulk mail folder, please add our ‘From’ e-mail address, subscriberservice@alphaprofit.com, to your address book.

AlphaProfit Newsletter: February 27, 2007 Bulletin

Subject: Today's sell-off

Dear Valued Subscriber,

Equity markets around the world sold off today with U. S. stocks losing about $600 billion in market value. The slide started in Shanghai, China where equity prices plunged nearly 9% on concerns that economic growth will slow. A 7.8% decline in U. S. durable goods orders added to negative sentiment. Freddie Mac’s decision to tighten lending standards to borrowers with less than perfect credit ratings brought housing-related concerns to the forefront.

The sell-off was broad-based in nature. The AlphaProfit Focus and Core model portfolios declined nearly 3.4% and 3.6% respectively today, generally in-line with the Dow Jones Wilshire 5000's 3.4% loss. The sell-off does not fundamentally alter our investment thesis for sectors and industry groups included in the model portfolios. Accordingly, we are leaving the composition of the model portfolios unchanged at the present time.

Putting this decline in perspective, it comes after the S&P 500 index has tacked on gains eight months in a row. At 1,399 the index sits about 4% below its recent high of 1460 recorded on February 20.

Looking ahead, the current decline may have some more way to go. Subscribers may use this period of weakness as a buying opportunity. This applies particularly to Subscribers having model portfolio tracking accounts with actual asset allocation less than their targeted allocation. Such Subscribers may invest additional cash and work towards their targeted allocation.

The March Indicator Update will be published on March 1.

Sincerely,
Sam Subramanian
AlphaProfit Investments, LLC
Ideas. Insights. Results.
http://www.alphaprofit.com

Notes: The AlphaProfit Sector Investors' Newsletter™ is for information purposes only. AlphaProfit Investments, LLC is not soliciting any subscriber to buy or sell any security. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. Before buying any mutual fund, read its prospectus carefully. AlphaProfit Investments, LLC cannot and does not give any assurance that the present or future model portfolio changes will be profitable. Past performance is not a guarantee for future results. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is affiliated with nor receives any compensation from Fidelity Investments. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of this newsletter. No part of the AlphaProfit Information may be reproduced or re-transmitted in any manner without written permission of AlphaProfit Investments, LLC.

Copyright © 2007. AlphaProfit Investments, LLC. All rights reserved.