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July 2008

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Zachary Karabell
Fred Alger on
"The Big Picture
for 2008"
July 31, 2008
1:00 pm (EST)

Join Gabriel Burczyk and special guest Zachary Karabell, Ph.D., for a discussion about "The Big Picture for 2008." They will be discussing: How the World is Changing, "Rise of the Rest," The Winners, and $500 billion military spending. Plus, learn about the Fred Alger Small Mid Cap Growth strategy.
My Money, My Life

India
A Passage From India

Fashion import magnate, hotel owner, and now, casual investor and world traveler.

That's the entrepreneurial path A.G.* has taken in life and it's served him well - so well, that he figures the rest of his days can be spent fulfilling the dream of "A.G. and wife" seeing the world, without a worry about how they're going to pay for it.
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MARKET COMMENTARY

Inflation Nation: Making Lemonade From
Pricier Lemons
By Gabriel F. Burczyk, President & CEO

Gabriel F. BurczykNo doubt about it, a dollar just isn't what it used to be.

By any measure, the value of the greenback in 2008 is in retreat.

History, recent and otherwise, tells just how much in retreat. Take the average duration of a baby boomer's lifetime.
  • In 1958, $1.00 had about the same buying power as $7.38 in 2008.
  • In 1968, $1.00 had about the same buying power as $6.19 in 2008.
  • In 1978, $1.00 had about the same buying power as $3.38 in 2008.
  • In 1988, $1.00 had about the same buying power as $1.82 in 2008.
  • In 1998, $1.00 had about the same buying power as $1.31 in 2008.
The average annual inflation rate over the entire period between 1958 and 2008 was about 4% - fairly consistent with inflation's historical growth. But over the past year, consumer inflation is up by 5% - the biggest inflation jump since May 1991, right at the heart of a recession.

MONEY MANAGER SPOTLIGHT
Estabrook: The Art & Science of Finding Value

Estabrook Capital Management The key to weathering market declines is proper asset allocation, rebalancing, and - much like shopping during a sale - finding good value for a bargain price. As a value-oriented manager, Estabrook Capital Management (ECM) believes that reasonable stock valuations (relative to longer-term earnings potential) and recent stimulative monetary policy have created a number of favorable stock buying opportunities.

Following this investment philosophy, ECM's Large Cap Core Value Strategy is a consistent performer over time, boasting net returns** of 14.1% 5-year, 10.7% 3-year, and 6.6% one-year, as compared to the S&P 500's 11.3%, 5.9% and -5.1%, respectively (all for the period ending 3/31/08). ECM seeks out stocks selling below their intrinsic market value and maintains a relatively concentrated portfolio of 35-45 best ideas with a 3-to-5 year investment timeline.
 
**Returns are net of WrapManager's all-inclusive 1.50% fee. Net returns in the attached piece produced by Estabrook are based on their fee schedule. For full details on our fees, please refer to Schedule H of our brochure. The information contained in the report below was prepared by Estabrook. WrapManager is not responsible for any damages or losses arising from use of this information, and does not assume any liability for erroneous information provided by Estabrook.
 
Click for ECM's Market Commentary
Click for an overview of ECM's Large Cap Core Value Strategy
TAX & RETIREMENT
Mattress Money

Good news - you can pull another $1.5 million out from under the mattress at the end of this year. No need to despair once the estate tax exclusion increases to a whopping $3.5 million on January 1.* This increase could save your heirs hundreds of thousands in taxes. The tax is scheduled for repeal in 2010, then reinstate/reset to $1 million in 2011 - although that's expected to change next year. Contact your WrapManager wealth strategist today to learn how you can take advantage of the increased exclusion and plan for subsequent changes in the future.

*Source: Economic Growth and Tax Relief Reconciliation Act of 2001 (Pub.L. 107-16, 115 Stat. 38, June 7, 2001).
The attached report and information have been prepared or produced by WrapManager, Inc. from sources and data believed to be reliable. Information provided in this report is for educational and illustrative purposes only and should not be construed as individualized investment advice, as an offer to sell, or the solicitation of an offer to buy any security in any states where such an offer or solicitation would be prohibited by regulations. WrapManager, Inc. is not a tax advisory firm. We recommend you contact your tax attorney or CPA prior to utilizing any of the tax-related strategies mentioned or discussed. Returns and experiences will vary for each client. Each client's risk tolerance and investment objectives are unique to them. Past performance may not be indicative of future results. No assumption that future performance of any specific investment or product made reference to directly by WrapManager, Inc., on its Web site and in marketing materials, will be profitable or equal the corresponding indicated performance level(s). If performance numbers are generated gross of fees, a client's return will be reduced by investment advisory fees and any other expenses. Opinions expressed are those of WrapManager, Inc. and are subject to change without notice and are not necessarily those of Prospera Financial Services, Inc., its directors, parent company or its affiliates. Securities offered through Prospera Financial Services and cleared through First Clearing, LLC. Prospera Financial Services - Member FINRA/SIPC.

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