Stock Market Makes Significant Gains for Quarter

In our last commentary, we looked at the powerful nature of rebounds following large stock market drops.
Our conclusion was that large stock market losses have historically been followed by significant moves
higher. Historians will be heartened that, once again, history is repeating itself. During the 2nd Quarter,
stocks had their best return since the 2nd quarter of 2003 with the S&P advancing 16%.

Toews Risk Management

Many iVest clients use our proprietary strategy by itself or along side our sister strategies like
Littman/Gregory, Breen, Dividend Strategies and others. Our risk management can compliment other
strategies and is a viable investment solution by itself. The Toews system was fully invested for the quarter.
Most Toews system accounts are now showing positive returns for the period from January ’07 through the
end of June of this year despite severe losses in U.S. and International markets.

*Results above show performance for the Toews iVest Aggressive Growth Portfolio to illustrate the effect
of Toews management on US and Intl. Stocks. Performance of individual accounts will vary based on your
investment risk profile and your investment strategist(s). For your individual account performance please
refer to your statement included with this commentary.

History Indicates that Rebound May Continue

We found 7 prior instances of 30% or greater declines in the Dow since 1928. Not surprisingly, once the
stock market did reach a bottom, the gains were decisive and significant. On average, the Dow rebounded
90.7% before peaking, with the average duration of those bull markets lasting just over 2 years (See table
below)*.

There is still a palpable fear among investors that we talk with each day. For our investors who are trying
to navigate the markets, it may be helpful to remember that smart stock investing is counter-intuitive.
When fear is the highest, it has historically been a desirable time to invest. Perhaps now, more than ever, it
is important to stick to your long term plan and remain committed to the stock market.

Disclosure
Prior performance is no guarantee of future results and there can be no assurance, and individuals should not assume, that future performance of any of the portfolios referenced will be comparable to past performance.

There can be no assurance that Toews will achieve its performance objectives.

This document refers to the performance of the majority of Toews portfolios to illustrate the effect of Toews management on US and intl. stocks and high yield bonds. Performance of individual accounts varied based on the client’s investment risk profile and their specific investment funds. For your individual account performance, please refer to the enclosed quarterly statement or the quarterly statement recently sent you. In addition, not all model portfolios were referenced in this letter. It is not, nor is it intended to be, a comprehensive accounting of Toews asset management. There are other portfolios that Toews manages that performed differently than what is referenced in this letter.

This article may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.”

This article is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice. Please contact your investment adviser, accountant, and/or attorney for advice appropriate to your specific situation.

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