Portfolio Solutions, LLC

January 24, 2008

The later part of 2007 and so far in 2008 the stock market has been volatile mainly over concerns of a recession and weak conditions in the credit markets. It remains to be seen whether the economy actually does cycle down as much as the stock market is anticipating. Stock prices tend to move with economic growth over the long-term. In contrast, prices can be quite volatile over the short-term as they move on emotion.

Portfolio Solutions, LLC investment strategy is focused on long-term investment risk and return management rather than short-term market swings. We manage risk in portfolios by rebalancing accounts when there are meaningful market fluctuations. Rebalancing is accomplished by selling a portion of investments that have performed well and purchasing a portion of investments that have not performed well. This disciplined approach to managing risk is unemotional and no-speculative, and it has worked through every economic cycle in the US and globally. A steady hand coupled with low advisor fees is the reason people hire Portfolio Solutions, and dicipline is what we deliver during all market conditions.

It is a good time to remember the words of Jack Bogle in his timeless book, Common Sense on Mutual Funds:

"Stay the Course. No matter what happens, stick to your program. I've said "Stay the Course" a thousand times, and I meant it every time. It is the most important single piece of investment wisdom I can give to you."

Rick

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