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Money Manager Monthly |
WrapManager.com | Contact Us |
August 2008 |
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MARKET COMMENTARY
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Controlling Risk In a Tumultuous Market
By Gabriel F. Burczyk, President & CEO
 Last month saw a potential short-term top in commodities prices, as both oil and gold prices seem to have stalled from their upward march in 2008. That should have spelled relief for the stock market, which has been down by over 12% (at the time of this writing) for 2008, as measured by the Dow Jones Industrial Average. Yet, it didn't.
These recent trading days saw the Dow swing back and forth by many hundred points. The market may be waiting until after Labor Day or the political conventions, when it can have another few weeks to discern that commodity prices have stopped their recent surge. In the meantime, Americans will be back from their summer vacations and "idle" time; historically, that leads to more investment activity on Wall Street.
When those investors do shake the sand out of their shoes and take a closer look at how their investments are doing, the advice here is to focus on diversification - spreading your investments around various investment classes to reduce overall portfolio volatility.
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MONEY MANAGER SPOTLIGHT
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Federated Strategic Value: Dividends While You Wait
 What can be better than receiving dividends when the rest of the market is figuring out which way to go? Federated Strategic Value targets higher-yielding market sectors, industries, and companies to deliver a diversified portfolio of dividend income and capital appreciation potential. This experienced, well-known money manager seeks out high-yield income value stocks with an investment objective to lower downside risk during market weakness, and offer competitive upside performance in strong market environments. The Federated Strategic Value managed account reported a dividend yield of 6.3% for the period ending 06/30/2008*. Get dividends while you wait for a market recovery...learn more about the Federated Strategic Value Managed Account.
*The information presented and contained in the linked report was prepared by Federated Investors, Inc. 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 Federated Investors, Inc.
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FINANCIAL TIDBIT
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Is Your Money Safe?
 Is the recent volatility of the financial markets and industry keeping you up at night? When it comes to securities investing, no one can protect your money against losses from fluctuating market value. WrapManager believes the best defense is the power of diversity. When it comes to firms holding your assets, make sure your investment accounts are insured. The Securities Investor Protection Corporation (SIPC) protects against the risk of brokerage insolvency up to $500,000 per client, including $100,000 for cash claims. Above and beyond this threshold, First Clearing Corporation (WrapManager's custodian) offers, at no additional cost, insurance through Customer Asset Protection Company (CAPCO), an insurance provider formed by 13 securities firms in 2003.
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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. © 2008 WrapManager, Inc. (800) 541-7774 |
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