Released on = February 25, 2007, 10:04 am

Press Release Author = Laura P. Wright, BlabberMouth PR

Industry = Financial

Press Release Summary = The relatively strong economy that opened 2007 is expected
to trail off by the second quarter, leading to speculation that the Federal Reserve
could reduce interest rates in late 2007, according to national investment
management and financial advisory firm Sage Advisory Services of Austin, Texas.

Press Release Body = Sage Advisory Predicts Economy Could Weaken by Q2 Resulting in
Rate Reduction Later in 2007

AUSTIN, Texas - February 27, 2007 - The relatively strong economy that opened 2007
is expected to trail off by the second quarter, leading to speculation that the
Federal Reserve could reduce interest rates in late 2007, according to national
investment management and financial advisory firm Sage Advisory Services of Austin,
Texas.

"While the economy should stage another respectable performance in the first
quarter, we are looking for a weakening trend to set in towards the end of the
period, presaging several quarters of below-trend growth," said Robert G. Smith,
Sage Advisory president and CIO. "If the gradual reduction in inflationary
pressures unfolds as we expect, that should open the door for the Fed to ease rates
sometime in the second half of the year."

Smith cited several factors that have led the U.S. to enjoy an upbeat first quarter.
For one, the economy is still feeling the positive effects of households that are
still spending their savings from lower energy costs in late 2006, as well as
redeeming gift cards. Steady job gains and higher wages are increasing household
income, and foreign investment in corporate bonds are keeping borrowing costs down.
Capital outlays by business are also up.

However, he warned, other influences coming into play may upset that balance.

"We doubt that the full effects of the housing drag has been felt," he said. "Its
impact will become more apparent once the temporary growth boost from the mild
weather of December and early January and low energy costs dissipates. Relatively
low bond rates also signal that investors expect the economy to weaken considerably,
inflation to stay low and interest rates to fall.

"It is a close call as to what the Fed will do in coming months. However, it is our
sense that the next move is likely to be a cut rather than an increase, following
its traditional role of lowering rates to stimulate the economy."

For a more complete economic analysis, visit www.sageadvisory.com and download
SageAdvice "Quarterly Economic Outlook, First Quarter 2007."

About Sage Advisory Services
Founded in 1996, Sage Advisory Services is a national investment management and
financial advisory firm that provides institutions and high-net-worth individuals
with customized products and services including fixed-income and equity portfolio
management, asset/liability analysis and structured portfolio solutions designed to
minimize financial risk and increase returns. Sage is one of the fastest growing
companies in Central Texas, with an AUM (assets under management) growth rate of 20
percent per year over the past five years. Its consistently high performance record
is a result of its proprietary investment process, as well as its dedication to
offering clients exclusive representation by senior-level managers with global
expertise.

Sage's investment management strategy employs a top-down approach to market
analysis, taking into account broad domestic, international and economic trends when
applying portfolio management strategies. And while most investment management firms
have limited experience with exchange-traded funds, Sage offers an in-depth
understanding of ETFs and a highly successful five-year performance record managing
ETF portfolios. Reflecting its commitment to providing education and transparency,
Sage provides frequent access to up-to-date information on investment fundamentals,
market trends and economic issues affecting client investments, and 24-hour
real-time access to information about investment activity. For more information,
visit www.sageadvisory.com.

###

CONTACT:
Laura P. Wright
Blabbermouth PR
512-461-5777
laura@blabbermouthpr.com



Web Site = http://www.sageadvisory.com

Contact Details = Laura P. Wright
Blabbermouth PR
512-461-5777
laura@blabbermouthpr.com