Put strategic money management to work for 
									you. Discover the keystones of winning investment 
									strategies.
                                
                                
                                
                                    To be profitable, investment strategies and portfolios need to be consistently 
												reviewed, evaluated, and modified to reflect changes in the market.
                                
                                
                                    At Peter Dag & Associates, Inc. our experience has shown the following 
												components are critical to successful money management:
                                
                                
                                    - An in-depth understanding of the business cycles and the economic environment
                                    
 
                                    - Portfolio flexibility for secure risk management
                                    
 
                                    - Stock selection based on sector analysis and business cycles
 
                                
                                
                                    Let's review these principles and discuss how Peter Dag & Associates, Inc. 
												applies them to develop profitable investment strategies and investment advice 
												for you.
                                
                                Money Management Principle #1: In-depth 
												understanding of the business cycles and economic environment secures your 
												success. 
                                
                                    The financial experts at Peter Dag & Associates, Inc. constantly monitor 
												risk changes as the business cycle moves through its various phases. We chart 
												economic indicators to identify and predict turning points in financial and 
												business cycles. Depending on the direction and configuration of these 
												indicators, we anticipate the direction of the stock market, stock sectors, 
												commodity prices, interest rates, and the dollar. A deep appreciation of these 
												relationships tells us the direction of risk for each stage of the market 
												cycle. And our clients benefit from our timely and profitable investment 
												advice.
                                
                                Money Management Principle #2: Flexible 
												investment strategies make risk work for you. 
                                
                                    We design and implement flexible investment strategies to minimize your risk. 
												Our objective is to reduce the volatility of your portfolio and to protect it 
												from losses. A portfolio is a dynamic entity: when risk increases, we reduce 
												your exposure to the weakest stocks. When risk declines, we increase your 
												investment in the strongest stocks. Successful investment strategies follow the 
												business cycle and take advantage of the changing risk of the markets. You'll 
												see this in the investment advice we give you.
                                
                                Money Management Principle #3: Select stock 
												sectors from the strongest areas of the stock market. Select value stocks that 
												have outperformed the market. 
                                
                                    We recommend the strongest stocks in the strongest stock sectors that are likely 
												to remain attractive because of their value, management performance, and 
												business model.
                                
                                Peter Dag's strategic thinking makes all the 
												difference to you and your money. 
                                
                                    Investment strategies are like a game of chess. After every move, both players 
												re-evaluate their scenarios and all the possible moves they could make to win. 
												This strategy is very different from the mindset of most investors, who tend to 
												think in terms of 100% buy or 100% sell.
                                
                                Investment strategies designed to adjust to 
												changing times. 
                                
                                    As soon as the markets make their moves - and new data becomes available about 
												the economic and financial environment - Peter Dag & Associates, Inc. goes 
												to work for you. As in a game of chess, we re-analyze and determine possible 
												outcomes as a set of potential future scenarios. New scenarios are developed 
												and ranked by their likelihood of taking place. An investment strategy and 
												specific investment advice is then developed for the most likely outlook, 
												keeping in mind, however, that other scenarios may become relevant.
                                
                                Gradual portfolio changes reduce the volatility 
												of your portfolio and improve profits.
                                
                                    By making gradual adjustments to your portfolio, you have the flexibility to 
												adapt more easily to the fluctuations of the financial environment. Our 
												investment advice for your assets reflects these gradual changes in the 
												business cycle, economic and financial environment.
                                
                                Reporting keeps you in control of your money. 
                                
                                    You'll receive a "Money Management Report" discussing the business cycle, market 
												conditions, our investment strategy and investment advice every quarter. It 
												explains our views, and the risks and opportunities we see ahead. Every time we 
												make a transaction, you will receive a confirmation statement from the 
												institution where you have your portfolio. You will also receive a quarterly 
												statement from Peter Dag & Associates, Inc.
                                
                                
                                    Our clients have their funds with the major brokerage houses. We recommend 
												brokerage houses that have Internet trading capabilities because commissions 
												are considerably lower than conventional trading.
                                
                                Money Management Fees. 
                                
                                    The annual money management fee is 0.8% of the value of the assets under 
												management up to $2,000,000. Annual fees are 0.5% for the next 
												$2,000,000-$5,000,000. Fees are negotiable for accounts above $5,000,000. Money 
												management fees are billed and payable at the beginning of each quarter.
                                
                                Answers to your investment strategies questions 
												are just a call away. 
                                
                                    You can contact us anytime to discuss your specific money management and investment 
												issues and questions.
                                
                                
                                    We are looking forward to having you as one of our valued clients.
                                
                                
                                    Sincerely,
                                
                                Peter Dag & Associates, Inc.