NED DAVIS RESEARCH GROUP - Market Technicians Association

Ned Davis Research GroupStrategies In Global Equity InvestingAnd Momentum-Based Approaches2007 MTA Mid-Winter RetreatMiami BeachJanuary 19, 2007Tim Hayes, CMTChief Investment Strategist

• More of the same, or the comeback of volatility?• Continued compression of returns, or rising dispersion?• Trends intact or in trouble?• Whatever the answers, systems will manage the risk.Ned Davis Research Group

Ned Davis Research GroupWhen Volatility Turns Higher, It Usually Does So on the Downside.

107477970591043833250241117881326983729541401297221164121906749Dow Jones Industrial AverageMedian DJIA % ReturnsSince 6/27/1950 (12 Cases)*Days AfterAllLater Signals Periods10 0. 9 0. 522 1. 6 1. 063 6. 0 2. 3126 10. 2 4. 0189 18. 1 6. 2252 22. 0 7. 2*mixed results prior to 1950sSignals Indicate InitialReadings Above Top Band(>110% Above 1-Yr. Avg.)Daily Data 10/03/1928 - 1/05/2007 (Log Scale)DJIA % Gain/Annum When:(10/03/1928 - 1/05/2007)Volatility Gain/ %Index is: Annum of Time> 20% Above 1-Yr. Avg. 16. 4 16. 1* Between Bands 4. 0 64. 0> 20% Below 1-Yr. Avg. 0. 4 20. 010747797059104383325024111788132698372954140129722116412190674919331938194319481953195819631968197319781983198819931998200319.415.412.39.87.76.24.93.93.12.52.01.51.21.00.80.60.50.4Bands vs. One-Year Moving Average:Top (Heavy Dashed Line) = 110% Above Avg. (3.31%)Middle = 20% Above Avg. (1.89%)Lower = 20% Below Avg. (1.26%)Low VolatilityHigh Volatility1/05/2007 = 1.72%Intraday Volatility Index:% Spread Between Intraday High and Low(Three-Day Smoothing Log Scale)19.415.412.39.87.76.24.93.93.12.52.01.51.21.00.80.60.50.4(S232)DJIA Intraday Volatility Index -- Historical PerspectiveNed Davis Research GroupPlease see important disclosures at the end of this document.

101896777450729981994132688258639025917311576Average Intraday Volatility Per YearDow Jones Industrial AverageYearly Data 12/31/1929 - 12/31/2006 (Log Scale)1018967774507299819941326882586390259173115764.44.03.63.22.82.42.01.61.20.80.43.93.63.33.02.72.42.11.81.51.20.90.6DJIA Intraday VolatilityAnnual MeansMean (dashed line) = 1.78%NASDAQ Intraday VolatilityAnnual MeansMean (dashed line) = 1.37%4.44.03.63.22.82.42.01.61.20.80.43.93.63.33.02.72.42.11.81.51.20.90.6(STH0701F_C)1930193519401945195019551960196519701975198019851990199520002005Ned Davis Research GroupPlease see important disclosures at the end of this document.

9995639340892616167310706854382801791157347Average Volatility Per YearYearly Data 12/31/1900 - 12/31/2006 (Log Scale)99956393408926161673107068543828017911573473DJIA Annual Standard Deviation of Daily Returns321Mean (dashed line) = 0.96%212624222018161412108642Number of 5% DJIA Reversals per YearMean (dashed line) = 6.726242220181614121086421900(STH0701G_C)190519101915192019251930193519401945195019551960196519701975198019851990199520002005Ned Davis Research GroupPlease see important disclosures at the end of this document.

4418390834573057270423922116187116551464129511451013896793701620549485429NASDAQ-100 vs. VXN and Actual VolatilityNASDAQ-100 Index (NDX)Daily Data 1/03/1995 - 1/05/2007 (Log Scale)1/05/2007 = 1785.3044183908345730572704239221161871165514641295114510138967937016205494854291051009590858075706560555045403530252015CBOE NASDAQ Volatility Index* (VXN) (solid line)Actual NDX One-Month Volatility(Annualized Standard Deviation) (dashed line)* Represents the implied volatility of ahypothetical at-the-money NDX optionwith 30 calendar days to expiration%1051009590858075706560555045403530252015(Q1600)M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Ned Davis Research GroupPlease see important disclosures at the end of this document.

1498.81442.71388.61336.61286.61238.41192.01147.41104.41063.01023.2984.9948.0912.5878.3845.4813.8783.3754.044.040.737.634.732.129.727.425.423.521.720.018.517.115.814.613.512.511.610.79.9(DAVIS72)Standard & Poor's 500 Stock Index vs VIX IndexS&P 500 Gain/Annum When:Gain/ %VIX Index Is: Annum of TimeAbove 28.5 66. 2 13. 5Between 21.5 and 28.5 -0. 3 30. 8* 21.5 and Below -0. 6 55. 7High ComplacencyDaily Data 12/31/1996 - 1/05/2007 (Log Scale)1/05/2007 = 1409.71High Fear Implied Volatility Index1/05/2007 = 12.1M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20071498.81442.71388.61336.61286.61238.41192.01147.41104.41063.01023.2984.9948.0912.5878.3845.4813.8783.3754.044.040.737.634.732.129.727.425.423.521.720.018.517.115.814.613.512.511.610.79.9Ned Davis Research GroupPlease see important disclosures at the end of this document.

1482105675353738227319413999705036251813975Standard & Poor's 500 Stock IndexS&P 500 Gain/Annum When:100-Day Gain/ %Index Is: Annum of Time>15% Above 1-Yr Avg. 14. 3 23. 5Between Bands 4. 5 51. 1* >15% Below 1-Yr Avg. 0. 0 25. 5Daily Data 5/04/1928 - 1/05/2007 (Log Scale)14821056753537382273194139997050362518139751933193819431948195319581963196819731978198319881993199820032.82.62.42.22.01.81.61.41.21.00.80.60.4Bands vs. One-Year Moving Average of 100-Day S&P 500 Volatility Index:Upper = 15% Above Avg. (0.57%)Lower = 15% Below Avg. (0.42%)100-Day Average of Absolute Change in S&P 500High VolatilityLow Volatility1/05/2007 = 0.36%2.82.62.42.22.01.81.61.41.21.00.80.60.4(S0237)100-Day S&P 500 Volatility IndexNed Davis Research GroupPlease see important disclosures at the end of this document.

Ned Davis Research GroupInevitably, Compression Gives Way to Dispersion.

Style Return Dispersion - 26-Week BasisWeekly Data 12/01/1995 - 1/05/20078075706560555045403530252015105Spread Between Best and Worst Performing StylesAmong Six Russell Style Indices*Based on Rolling 26-Week Percent Changes* Includes the respective Growth and Value indices forLarge-caps (Russell Top 200), Mid-caps (Russell MidCap),and Small-caps (Russell 2000).Median1/05/2007 = 5.01%8075706560555045403530252015105272421181512963Spread Between Large-caps and Small-caps(Russell 1000 and Russell 2000)Based on Rolling 26-Week Percent ChangesMedian1/05/2007 = 2.19%27242118151296339363330272421181512963Spread Between Growth and Value(Russell 3000 Growth and Value)Based on Rolling 26-Week Percent ChangesMedian1/05/2007 = 1.56%39363330272421181512963(AA276)D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Ned Davis Research Group10Please see important disclosures at the end of this document.

36.0034.00S&P 500 Sector Annual (Cross-Sectional) Standard Deviation of Returns (Since 1996)Daily Data 1/02/1996 - 1/05/2007%36.0034.0032.0032.0030.0030.0028.0028.0026.0026.0024.0024.0022.0022.0020.0020.0018.0018.0016.0016.0014.0014.0012.0012.0010.0010.008.008.006.006.004.00(ES150)Latest reading through 1/05/2007 = 6.41Based on rolling 252-day rate of change.M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20074.00Ned Davis Research Group11Please see important disclosures at the end of this document.

595857565554535251504948474645444342414039383736353433323130292827262524232221201918171615141312111098Yearly Data 12/31/1971 - 12/31/2006MSCI Developed Markets Annual (Cross-Sectional) Standard Deviation of Returns (1971 to 2006)MSCI Total Return Indices (Local Currency):AustraliaJapanAustriaNetherlandsBelgiumNorwayCanadaSingaporeDenmarkSpainFranceSwedenGermanySwitzerlandHong Kong United KingdomItalyUnited States12/31/2006 = 7.4%Standard deviation of one-year returns of each MSCI index listed above.%595857565554535251504948474645444342414039383736353433323130292827262524232221201918171615141312111098(STH0701A_C)197219741976197819801982198419861988199019921994199619982000200220042006Ned Davis Research Group12Please see important disclosures at the end of this document.

Major Developed Markets Return Dispersion - 12-Month BasisMonthly Data 1/31/1971 - 12/31/20061261231201171141111081051029996939087848178757269666360575451484542393633302724211815129Spread Between Best and Worst Performing Country/Region*Based on Rolling 12-Month Percent Return* Includes the respective MSCI Total Return Indices priced in local currencies:U.S., Canada, U.K., Europe ex. U.K., Japan, and Asia ex. Japan12/31/2006 = 17.56%Median =32.73%1261231201171141111081051029996939087848178757269666360575451484542393633302724211815129STH0701B_C197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006Ned Davis Research Group13Please see important disclosures at the end of this document.

Ned Davis Research GroupLong-Term Trends Test the Lines Successfully, But Eventually They Break Through.

Global Reflation Theme (I)Daily Data 7/01/1996 - 1/05/2007 (Log Scale)10MSCI China Index / MSCI World IndexScale Right1/05/2007 = 3.54754311710797898174676156514642394367341317295274255237221205191Dow Jones Emerging Markets Index /Dow Jones Developed Markets IndexScale Left1/05/2007 = 90.02NDR Global Basic Resources Sector/NDR Global CompositeScale Right1/05/2007 = 41.20Reuters-CRB Continuous Commodity IndexScale Left1/05/2007 = 380.2624339363330272523211917(I 0105)S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Ned Davis Research Group15Please see important disclosures at the end of this document.

19317415814312911710696877871645852695632575523475432393358325296269Global Reflation Theme (II)NDR Global Oil & Gas Sector / NDR Global Composite(Equal-Weighted)Scale Right1/05/2007 = 65.67NDR Australia Composite /NDR Global CompositeScale Right1/05/2007 = 74.59Dow Jones Latin America Index /Dow Jones DevelopedMarkets IndexScale Left1/05/2007 = 197.08Daily Data 7/01/1996 - 1/05/2007 (Log Scale)Comex Gold Futures IndexScale Left1/05/2007 = 612.50817265585247423834302724736761565147433936333027(I 0105A)S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Ned Davis Research Group16Please see important disclosures at the end of this document.

169414781289112498085574665156749543232157262272139117446142291160594657720629651354188London Metals Index and Select ComponentsTinScale Right1/04/2007 = 10850LeadScale Left1/04/2007 = 1722London Metals IndexScale Right1/04/2007 = 3515.9ZincScale Right1/04/2007 = 4074Daily Data 7/01/1996 - 1/04/2007 (Log Scale)NickelScale Left1/04/2007 = 3395538183307286424812149186116121396120910471125210106907781537323657759085306476642813845426336063050258021821845156113201117944799(STH0701C_C)S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Ned Davis Research Group17Please see important disclosures at the end of this document.

398370344319297276256238221205191265241218198179162147133121110Agricultural Commodity PerspectivesReuters-CRB Grains and Oilseeds IndexScale Right1/04/2007 = 265.56Corn Futures*Scale Left1/04/2007 = 366.38Wheat Futures*Scale Right1/04/2007 = 471.62Oats Futures*Scale Left1/04/2007 = 264.38Daily Data 7/01/1996 - 1/04/2007 (Log Scale)Orange Juice Futures*Scale Right1/04/2007 = 198.44867668*91-Day Perpetual Futures Contract 6029227225323521920418917616415352148044340837634732029527225019417315413712210896(STH0701D_C)S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Ned Davis Research Group18Please see important disclosures at the end of this document.

Are Trends and Themes Changing Course? Rather Than Rely on a Forecast, Use Systems for Guidance.Ned Davis Research Group

Four P position C currentprevious Weeks C composite Entry Entry Current Gain/Rank Week Ago Market reading Date Price Price Loss (%) ChartOVERWEIGHTRanked 1-3 — Buy/Overweight:1 2 2 Indice D.C. Bursatil 216.28 03/12/2006 29520.70 59413.31 101.26 I50922 1 1 Lima Exchange Index 191.70 02/05/2006 6314.38 12644.29 100.25 I50643 4 3 Jakarta Exchange Index 2.65 08/13/2006 1402.19 1832.55 30.69 I5044Ranked 4-13 After Reaching Ranks 1-3 — Hold/Continue to Overweight:4 5 6 Manila Exchange Index 74.16 10/29/2006 2702.37 2996.39 10.88 I50665 3 4 I.P.C. 73.76 11/27/2005 16879.37 26135.60 54.84 I5056PREVIOUSLY OVERWEIGHTRanked 14-29 After Reaching Ranks 1-13:14 12 5 Warsaw WIG Index .70 07/09/2006 42875.60 49560.26 15.59 I506818 9 12 Johannesburg All-Shares Index 37.22 06/04/2006 20874.86 24261.06 16.22 I5072PREVIOUSLY UNDERWEIGHTRanked 14-29 After Reaching Ranks 30-4229 41 20 Mishtanim 100 22.46 12/31/2006 921.69 938.95 1.87 I5048UNDERWEIGHTRanked 30-39 After Reaching Ranks 40-42 — Continue to Underweight:32 36 31 Prague PX-50 Index 21.18 12/24/2006 1569.80 1599.90 1.92 I502838 37 34 Helsinki HEX General .06 12/17/2006 9601.00 9405.60 -2.04 I5032Ranked 40-42 — Sell/Underweight:40 40 41 TOPIX Index .15 08/06/2006 1571.70 1675.33 6.59 I5052↓ ↓ 41 39 38 Seoul Exchange Index .32 01/07/2007 1385.76 1385.76 0.00 I507442 42 40 Bangkok SET Index -42.04 06/11/2006 670.41 628.19 -6.30 I50861 2 2 Indice D.C. Bursatil Venezuela 216.28 9413.31 I50922 1 1 Lima Exchange Index Peru 191.70 12644.29 I50643 4 3 Jakarta Exchange Index Indonesia 2.65 1832.55 I50444 5 6 Manila Exchange Index Philippines 74.16 2996.39 I50665 3 4 I.P.C. Mexico 73.76 26135.60 I50566 7 13 ** Hong Kong Hang Seng China .17 20211.28 I50247 6 8 IGPA Index Chile 7.72 12469.05 I50228 10 11 ** Madrid General Index Spain .78 1578.37 I50769 15 15 ** Straits Times Singapore 0.26 029.04 I507010 11 14 ** ISEQ Overall Index Ireland 9.58 9432.84 I504611 20 9 Kuala Lumpur Composite Malaysia .02 1120.40 I505412 13 10 BSE 100 India .86 7023.33 I504213 8 24 Merval Index Argentina .60 2063.88 I5010↓ 14 12 5 Warsaw WIG Index Poland .70 9560.26 I506815 14 7 Colombo Exchange Index Sri Lanka .10 2739.56 I507816 34 35 ** Athens Exchange Index Greece .48 0.14 I503817 18 26 ** Stockholm All-Share Index Sweden 7.23 72.71 I5080↓ 18 9 12 Johannesburg All-Shares Index South Africa 37.22 24261.06 I507219 24 27 ** Swiss Performance Index Switzerland 7.17 7015.51 I508220 19 16 Taiwan Trade-Weighted Index Taiwan .28 7835.57 I508421 23 19 ** Brussels Bel-20 Index Belgium .12 1.56 I501622 29 25 ** KFX Copenhagen Denmark .37 2.57 I503023 25 18 ** Frankfurt Xetra DAX Germany 29.98 93.09 I503624 22 32 ** Austrian Traded Index Austria 29.73 21.55 I501425 17 29 ** OBX Stock Index Norway 26.83 0.56 I506226 30 28 ** Milan MIBtel Index Italy 26.67 1936.00 I505027 27 22 ** NZSX 50 FF Gross Index New Zealand 25.79 035.26 I506028 16 17 Bovespa Index Brazil 22.89 2245.16 I5018↑ 29 41 20 Mishtanim 100 Israel 22.46 938.95 I504830 28 30 ** All Ordinaries Australia 22.25 9.80 I501231 31 37 ** Amsterdam AEX All-Share Netherlands 22.19 745.99 I505832 36 31 Prague PX-50 Index Czech Republic 21.18 1599.90 I502833 33 33 ** Paris CAC 40 France 20.05 17.35 I503434 32 21 ** S&P 500 Index U.S. 19.92 1409.71 I509035 26 39 Budapest Exchange Index Hungary 19.37 24116.85 I504036 38 36 ** London FTSE 100 U.K. 14.99 220.10 I508837 21 42 IBB General Index Colombia 13.61 10722.11 I502638 37 34 ** Helsinki HEX General Finland .06 9405.60 I503239 35 23 ** S&P/TSX Composite Canada .94 12477.97 I502040 40 41 ** TOPIX Index Japan .15 1675.33 I5052↓ ↓ 41 39 38 Seoul Exchange Index South Korea .32 1385.76 I507442 42 40 Bangkok SET Index Thailand -42.04 28.19 I5086↓ ↓ = New Underweight ↓ = Change from Overweight to Marketweight ↑ = Change from Underweight to Marketweight ** = Developed MarketOut-Of-Sample Performance Results 2/9/1996 - 1/07/2007 (Weekly Rebalancing); Top Category Has Gained 27.6% Per Annum; Equal-Weighted Universe HasGained 11.1% Per Annum; Bottom Category Has Gained 9.3% Per Annum.Ned Davis Research, Inc.NDR Global Market Index RankingFull RankFour Developedprevious Weeks Market currentRank Week Ago (**) Market country composite price ChartICS_1Ned Davis Research Group20Please see important disclosures at the end of this document.

2154196417901631148713551235112610269358527777086455885364894454063703373072802552332121931761611461331221111019284767064Global Market Index Ranking System Performance (Rebalanced Weekly)1/23/1994 = 100Out-of-sampleFull Date Range & Real-time Real-time%Gain/Annum %Gain/Annum %Gain/Annum1/23/1994 - 2/11/1996 - 8/19/1999 -Category 1/07/2007 1/07/2007 1/07/2007Overweights (Solid Line) 27. 2 27. 6 22. 7Universe (Dashed Line) 9. 8 11. 1 10. 9Underweights (Heavy Solid Line) 8. 6 9. 3 11. 5In-sample Out-of-sample Real-timeWeekly Data 1/23/1994 - 1/07/2007 (Log Scale)2154196417901631148713551235112610269358527777086455885364894454063703373072802552332121931761611461331221111019284767064(I 5000A)M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D M J S D1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Ned Davis Research Group21Please see important disclosures at the end of this document.

NDR Global sector RankingFour P position currentprevious Weeks C composite Entry Entry Current Gain/Rank Week Ago Sector country Reading Date Price Price Loss (%) ChartsOVERWEIGHTRanked 95-100 — Buy/Overweight:100 100 90 Travel & Leisure Singapore 99.30 11/19/2006 511 597 16.7 IGR1125, IGB112599 98 62 Telecom Hong Kong 96.36 12/24/2006 183 193 5.3 IGR780, IGB78098 99 81 Financial Services Singapore 96.22 09/10/2006 570 757 32.8 IGR1135, IGB113597 97 63 Food & Beverage Hong Kong 95.80 12/24/2006 522 552 5.7 IGR740, IGB74097 95 99 Travel & Leisure France 93.71 08/27/2006 1457 1994 36.9 IGR425, IGB42596 97 79 Financial Services France 89.23 02/19/2006 805 1208 50.2 IGR435, IGB43595 88 67 Food & Beverage Singapore 88.53 02/12/2006 396 583 47.3 IGR1140, IGB1140* 95 57 97 Telecom U.K. 85.45 01/07/2007 523 523 0.0 IGR1580, IGB1580Ranked Greater Than 60 and Less Than 95 After Reaching Ranks 95-100 — Hold/Continue to Overweight:94 76 76 Utilities Hong Kong 85.45 11/19/2006 1255 1307 4.2 IGR785, IGB78590 94 85 Insurance Australia 81.54 12/24/2006 365 368 0.8 IGR155, IGB15589 91 84 Industrial Goods & Services Denmark 80.28 12/03/2006 11534 11321 -1.8 IGR350, IGB35088 86 70 Automobiles & Parts Germany 78.74 10/29/2006 1864 1970 5.7 IGR500, IGB50088 78 100 Personal & Household Goods U.K. 76.36 12/10/2006 2486 2478 -0.3 IGR1565, IGB156584 74 95 Travel & Leisure Australia 71.75 10/29/2006 672 759 13.0 IGR125, IGB12578 89 86 Media Australia 67.27 06/25/2006 1835 2421 31.9 IGR160, IGB16076 87 95 Utilities Italy 66.71 12/03/2006 1853 1865 0.7 IGR885, IGB88574 67 98 Construction & Materials Spain 66.57 10/15/2006 4623 5336 15.4 IGR1220, IGB122074 77 67 Technology Canada 66.01 10/01/2006 313 342 9.1 IGR275, IGB27572 69 96 Financial Services Spain 65.03 12/03/2006 7446 7487 0.6 IGR1235, IGB123569 63 79 Industrial Goods & Services Spain 62.38 11/19/2006 1170 1212 3.6 IGR1250, IGB125064 96 82 Industrial Goods & Services Sweden 59.02 09/17/2006 2743 3219 17.4 IGR1350, IGB135062 95 93 Basic Resources Australia 58.32 10/22/2006 788 858 9.0 IGR110, IGB110UNDERWEIGHTRanked Greater Than 5 and Less Than 40 After Reaching Ranks 0-5 — Continue to Underweight:30 6 41 Retail Japan 36.64 12/24/2006 584 594 1.7 IGR970, IGB97028 2 37 Financial Services Japan 35.10 06/11/2006 673 629 -6.6 IGR935, IGB93518 27 4 Travel & Leisure Hong Kong 28.67 10/29/2006 205 219 6.9 IGR725, IGB72517 5 30 Construction & Materials Japan 27.69 06/04/2006 467 403 -13.7 IGR920, IGB92016 4 43 Insurance Japan 27.55 12/17/2006 740 735 -0.8 IGR955, IGB95513 2 30 Travel & Leisure Japan 22.66 10/08/2006 356 344 -3.6 IGR925, IGB92512 6 34 Media Japan 20.98 05/28/2006 780 651 -16.6 IGR960, IGB96011 3 32 Banks Japan 20.28 10/22/2006 314 305 -2.8 IGR905, IGB90511 1 27 Technology Japan 19.02 12/24/2006 286 284 -0.5 IGR975, IGB9757 16 2 Food & Beverage Canada 14.97 12/03/2006 231 231 -0.1 IGR240, IGB2406 27 3 Industrial Goods & Services Canada 14.97 12/10/2006 578 567 -1.8 IGR250, IGB2506 9 0 Media Hong Kong 14.97 08/06/2006 100 98 -2.4 IGR760, IGB7605 23 4 Retail Canada 13.57 12/10/2006 157 153 -2.9 IGR270, IGB270Ranked 0-5 — Sell/Underweight:4 34 2 Construction & Materials Canada 13.43 10/01/2006 318 323 1.6 IGR220, IGB220* 4 11 57 Oil & Gas U.S. 10.63 01/07/2007 640 640 0.0 IGR1630, IGB1630* 3 13 22 Utilities Canada 10.35 01/07/2007 318 318 0.0 IGR285, IGB2852 28 34 Health Care Canada 9.37 06/25/2006 555 496 -10.6 IGR245, IGB245* 2 9 46 Oil & Gas U.K. 8.25 01/07/2007 1821 1821 0.0 IGR1530, IGB15301 4 48 Oil & Gas Japan 6.71 12/31/2006 409 394 -3.5 IGR930, IGB9300 0 6 Oil & Gas Canada 0.98 10/01/2006 3122 2695 -13.7 IGR230, IGB230* = New Overweight or UnderweightOut-Of-Sample Performance Results 1/8/1993 - 1/07/2007 (Weekly Rebalancing); Overweight Category Has Gained 20.3% Per Annum; Equal-Weighted UniverseHas Gained 9.9% Per Annum; Underweight Category Has Gained 1.9% Per Annum.Real numbers are used for ranking (first three columns), shown in report in whole number form.Ned Davis Research, Inc.ICS_40Ned Davis Research Group22Please see important disclosures at the end of this document.

84297472662458735206461540923627321628512527224119861761156113841227108896485575867259652846841536832628925622720117915814012411098Global Sector Ranking System (Rebalanced Weekly)1/13/1985 = 100Out-of-sampleFull Date Range & Real-time Real-time%Gain/Annum %Gain/Annum %Gain/Annum1/13/1985 - 1/8/1993 - 5/4/2001 -Category 1/07/2007 1/07/2007 1/07/2007Overweights (Solid Line) 22. 6 20. 3 8. 4Universe (Dashed Line) 12. 1 9. 9 6. 4Underweights (Heavy Solid Line) 3. 7 1. 9 -2. 5Weekly Data 1/13/1985 - 1/07/2007 (Log Scale)In-sample Out-of-sample Real-time84297472662458735206461540923627321628512527224119861761156113841227108896485575867259652846841536832628925622720117915814012411098(IG1A)1986198719881989199019911992199319941995199619971998199920002001200220032004200520062007Ned Davis Research Group23Please see important disclosures at the end of this document.

NDR Global Balanced Account ModelModel Readings (I4000)asset Class 12/31/2006 benchmarkStocks 78.8% %Bonds 20.2% %Cash 1.0% 10%Global Balanced Account Model IndicatorsStock/Bond Indicators chart Number 12/31/2006 11/30/2006 10/31/2006Stock/Bond Ratio Trend Model I4012 Stocks Bonds StocksStock/Bond Ratio Trend I4014 Stocks Bonds BondsStock/Bond Overbought/Oversold Indicator I4016 Stocks Stocks Stocks% Of Stocks Above 10Wk & 40Wk Moving Averages I4018 Stocks Stocks Bonds% Markets Above 10Wk & 40Wk Moving Averages I4020 Stocks Stocks StocksStock Momentum I4022 Stocks Stocks StocksBond Momentum I4024 Neutral Stocks NeutralCorp. Bond Yield - Stock Earnings Yield I4026 Stocks Stocks StocksNDR Global Consumer Sentiment Composite I4028 Stocks Stocks StocksNDR Global Business Sentiment Composite I4030 Stocks Bonds NeutralYield Curve I4032 Stocks Stocks StocksOECD G7 Leading Indicator Index I4034 Bonds Bonds BondsCrude Oil Momentum I4036 Stocks Stocks StocksUnsmoothed Model Reading -- Percent in Stocks .5 9.2 9.2Final Model Reading -- Percent in Stocks (Two-MonthMoving Average) I4005 78.8 9.2 1.5Bond/Cash Indicators chart Number 12/31/2006 11/30/2006 10/31/2006Bond/Cash Trend (Double Weighted) I4050 Bonds Bonds BondsBond/Cash Overbought/Oversold Indicator I4052 Bonds Bonds BondsStock/Bond Momentum I4054 Cash Neutral NeutralNDR Global Consumer Sentiment Composite I4056 Bonds Bonds BondsNDR Global Business Sentiment Composite I4058 Cash Bonds NeutralStock Earnings Yield I4060 Bonds Bonds BondsStock Earnings Yield/Bond Yield I4062 Bonds Bonds BondsOECD G7 Leading Indicator Index I4064 Bonds Bonds BondsNorth American GDP I4066 Bonds Bonds BondsUnsmoothed Model Reading -- Percent in Bonds .3 100.0 94.4Final Model Reading -- Percent in Bonds (Two-MonthMoving Average) I4010 91.7 97.2 97.2Stock allocations based on Stock/Bond Model reading. Percentage not allocated to stocks is allocated to bonds and cash based on Bond/CashModel reading. Both Stock/Bond Model and Bond/Cash Model are smoothed by two months to reduce short-term volatility. All indicators areequal-weighted with the exception of Bond/Cash Trend Indicator, which is double-weighted in Bond/Cash Model.Ned Davis Research, Inc.ICS_70Ned Davis Research Group24Please see important disclosures at the end of this document.

82167355245237130424920416813711390756045301580706050403020105045403530252015105NDR Global Balanced Account ModelModel Equity Line3/31/1986 - 12/31/2006 GPA = 11.20%Std. Dev. of 12-Month Returns = 8.20%Benchmark Equity Line (55/35/10 Stocks/Bonds/Cash)3/31/1986 - 12/31/2006 GPA = 8.49%Std. Dev. of 12-Month Returns = 9.23%Monthly Data 3/31/1986 - 12/31/2006 (Log Scale)12/31/2006 = 906.712/31/2006 = 543.3Model Equity % 12/31/2006 = 78.8%Dashed Lines Indicate Benchmark WeightsModel Bond % 12/31/2006 = 20.2%Model Cash % 12/31/2006 = 1.0%82167355245237130424920416813711390756045301580706050403020105045403530252015105(I 4000)19871988198919901991199219931994199519961997199819992000200120022003200420052006Ned Davis Research Group25Please see important disclosures at the end of this document.

857768689617553496444398357320287257230206185166148133119107543210-1-2Global Balanced Account Model Monthly Excess ReturnGlobal Balanced Account Model & Benchmark Gain/Annum:Full Date Range Real-time% Gain/Annum % Gain/Annum4/30/1986 - 7/31/2005 -Equity Line 12/31/2006 12/31/2006Model (Solid Line) 11. 3 12. 5Benchmark* (Dashed Line) 8. 5 10. 6*Benchmark Equity Line = 55% Stocks, 35% Bonds, 10% CashGlobal Balanced Account Model & Benchmark Gain/Annum:Full Date Range Real-time4/30/1986 - 7/31/2005 -Statistic 12/31/2006 12/31/2006Mean % Monthly Excess Return 0. 20 0. 14% Of Months With Positive Excess Return 65. 46 70. 59Monthly Data 4/30/1986 - 12/31/2006 (Log Scale)12/31/2006 = 0.42%857768689617553496444398357320287257230206185166148133119107543210-1-2In-SampleReal-Time(STH0701E_C)19871988198919901991199219931994199519961997199819992000200120022003200420052006Ned Davis Research Group26Please see important disclosures at the end of this document.

Ned Davis Research GroupKey Recognition of a Useful System – "Don't Fight the Tape".

7136646185765365004654334043763503263041009080706050403020When Combined Ratio MS World LT Bonds %Signal: GPA TR GPA GPA of Time* Favors Stocks (0 to +2) 5. 1 10. 4 5. 1 63. 4Favors Bonds (-2 to -1) -9. 9 4. 6 16. 1 36. 6Buy/Hold -0. 7 8. 3 9. 0 100. 0Global Stock/Bond Total Return RatioStock Returns Based on MSCIWorld Total Return IndexBond Returns Based on LehmanGlobal Long-Term GovernmentBond Total Return Index(NDR Estimates Prior to 5/31/1987)Percentage of Markets Above Their 10-Week Moving Averages(Three-Month Smoothing)Rises by 0.5 Points = Favors StocksFalls by 1.5 Points = Favors BondsMonthly Data 10/31/1987 - 12/31/2006 (Log Scale)Global Stock/Bond Ratio vs. % of Markets Above 10-Week & 40-Week Moving Averages12/31/2006 = 474.912/31/2006 = 95.7 (1)7136646185765365004654334043763503263041009080706050403020100908070605040302010Percentage of Markets Above Their 40-Week Moving Averages(Two-Month Smoothing)Rises by 1.5 Points = Favors StocksFalls by 2.5 Points = Favors Bonds12/31/2006 = 98.9 (1)100908070605040302010(I 4020)1988198919901991199219931994199519961997199819992000200120022003200420052006Ned Davis Research Group28Please see important disclosures at the end of this document.

713664618576536500465433404376350326304908070605040302095908580757065605550454035302520When Combined Ratio MS World LT Bonds %Signal: GPA TR GPA GPA of Time* Favors Stocks (0 to +2) 5. 9 12. 2 6. 0 49. 6Favors Bonds (-2 to -1) -4. 8 6. 9 12. 2 50. 4Buy/Hold 0. 4 9. 5 9. 1 100. 0Global Stock/Bond Total Return RatioStock Returns Based on MSCIWorld Total Return IndexBond Returns Based on LehmanGlobal Long-Term GovernmentBond Total Return Index(NDR Estimates Prior to 5/31/1987)Monthly Data 10/31/1985 - 12/31/2006 (Log Scale)Global Stock/Bond Ratio vs. % of Global Stocks Above 10-Week & 40-Week Moving Averages12/31/2006 = 474.9Percentage of Stocks in NDR Global Composite Above Their 10-Week Moving Averages 12/31/2006 = 71.2 (1)Above 65 = Favors StocksBetween 45 And 65 = Neutral45 And Below = Favors BondsPercentage of Stocks in NDR Global Composite Above Their 40-Week Moving Averages 12/31/2006 = 68.1 (1)Above 60 = Favors Stocks60 And Below = Favors Bonds713664618576536500465433404376350326304908070605040302095908580757065605550454035302520(I 4018)198619871988198919901991199219931994199519961997199819992000200120022003200420052006Ned Davis Research Group29Please see important disclosures at the end of this document.

188018401800176017201680164016001560152014801440140048.348.248.148.047.947.847.747.647.547.447.33020100-10-20-30-40NDR Global Composite vs. Breadth IndicatorsDaily Data 1/05/2005 - 1/05/2007Composite Price Line 1/05/2007 = 1811.561868.2950-Day Smoothing (---)1880184018001749.49176017201688.98168016401590.7516001589.031542.15156015201507.27148014401426.00Current = 2636 Issues1400Composite Advance-Decline Line 1/05/2007 = 48.09 20-Day Smoothing (---) 48.348.2348.248.1348.148.0348.047.9847.8647.93 47.947.8047.847.747.6347.6247.647.5547.5647.547.447.347.26% Issues at 30-Day New Highs & New Lows25 27 27 25 253020100-102118 -2023-30-404349F M A M J J A S O N D J2006F M A M J J A S O N D J2007(IGB2000)Composite Performance Analysis Dates:(9/03/1985 - 1/05/2007)Performance When Price & A/D Lines are: % Gain/Annum % of Time* Both Above Smoothings 31. 4 45. 6At Least One Below -4. 6 54. 4Ned Davis Research Group30Please see important disclosures at the end of this document.

Biographical SketchTimothy W. Hayes, CMTChief Investment StrategistTimothy W. Hayes, CMT, is NDR’s Chief Investment Strategist. Tim joined the firm in 1986 and currentlyheads up the firm’s global and U.S. asset allocation services. He serves as Research Council coordinator andoversees NDR’s quarterly Investment Strategy, writing sections on strategy, asset allocation, U.S. stock marketand style allocation, and global allocation.Tim writes the Stock Market Focus, which features top-down stock market perspective, quantitatively-basedanalyses, asset allocation recommendations, and sector rankings. Tim also writes Global Focus, which focuseson the most significant global themes in addressing global asset allocation and the outlook for the world’svarious stock markets and global sectors. His team also produces a complementary Global Chart of the Day.Tim is featured regularly on CNBC and Bloomberg TV, and his market commentary is often quoted in The WallStreet Journal and other financial media in the U.S. and globally.He has written a book, The Research-Driven Investor, published in November 2000. He has contributed toseveral other books, and his research articles have appeared in the Journal of Technical Analysis, TechnicalAnalysis of Stocks and Commodities, and other publications.In 1996, Tim won the Charles H. Dow Award for groundbreaking research in technical analysis. Sponsored byDow Jones Telerate, the Market Technicians Association, and Barron’s, the award recognizes an outstandingoriginal work that best expounds on the principles of technical analysis.Ned Davis Research Group

About NDRNed Davis Research (NDR) is an independent, institutional research company with global reach. Since 1980, NDR hasprovided institutional investors with unbiased, "one-stop" investment research. Over the years, NDR’s professional staff hasdeveloped a reputation for espousing a disciplined approach to in–depth financial analysis which is supported by the firm’ssophisticated analytic tools, commitment to data integrity, and unsurpassed customer support.With more than 10 commentary publications, clients receive some of the broadest and most unbiased historical marketperspectives on the Street. From asset allocation to sector and group work, individual stocks, economic, or quantitativeresearch projects, NDR offers its clients unparalleled access to over 10,000 charts, reports, models and studies, many of whichare illustrated by the firm’s hallmark-rich graphics.NDR’s underlying database is one of the largest, most consistent and accurate in the industry since the firm dedicates an entiredepartment to scouring and scrubbing data from over 175 different data vendors.Using services from the Custom Research division, clients are able to work with analysts to design and build proprietaryindicators, studies, models, custom screens, analytic testing, or various other sophisticated projects.With clients in over 30 countries, NDR serves more than 5,000 users worldwide at investment firms, banks, insurance companies,mutual funds, hedge funds, pension and endowment funds, registered investment advisors, equity research departments, andother major financial institutions.Ned Davis Research Group is comprised of Ned Davis Research, Inc. (NDR) located in Venice, Florida, and Davis, Mendel &Regenstein, Inc. (DMR), an NASD institutional brokerage firm, located in Atlanta, Georgia. DMR is the exclusive providerof NDR’s products and services. The two closely integrated firms presently employ over 70 people ranging from marketstrategists, economists, quantitative and market analysts, and other market professionals.

Ned Davis Research Group(800) 241-06212100 RiverEdge Parkway, Suite 750Atlanta, GA 30328(770) 850-3838Fax (770) 850-3830sales@ndr.comwww.ndr.comNED DAVIS RESEARCH GroupNed Davis Research, Inc. Davis, Mendel & regenstein, Inc.For information call your client representative at (800) 241-0621 or (770) 850-3838 FAX (770) 850-3830The data and analysis contained herein is provided “as is”, without warranty of any kind, either expressed or implied. Ned Davis Research, Inc. (NDR), nor any of its affiliates or employees, nor any third party data provider, shall have anyliability for any loss sustained by anyone who has relied on the information contained in any NDR publication. All opinions expressed herein are subject to change without notice, and you should always obtain current information and performdue diligence before trading. NDR, accounts that NDR or its affiliated companies manage, or their respective shareholders, directors, officers and/or employees, may have long or short positions in the securities discussed herein and maypurchase or sell such securities without notice. The securities mentioned in this document may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and income they produce may fluctuateand/or be adversely affected by exchange rates, interest rates or other factors. For data vendor disclaimers refer to www.ndr.com/vendorinfo. Further distribution prohibited without prior permission. Copyright 2006 © Ned Davis Research,Inc. All rights reserved.