Money Manager Monthly

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September 2008

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Investment Quiz


1. What was the value of world financial assets at the end of 2007?*
a) $20 trillion
b) $44 trillion
c) $114 trillion
d) $195 trillion

2. How many failed thrifts did the Resolution Trust Corporation (RTC) resolve from 1989 to 1995?**
a) 114
b) 322
c) 414
d) 747

3. How many banks have failed so far this year?
**
a) 12
b) 67
c) 258
d) 382

Answers: 1. d) $195 trillion 2. d) 747 3. a) 12.

*Source: McKinsey Global Institute.
**Source: FDIC.
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MARKET COMMENTARY

Obama vs. McCain: Economic Policy Differences Offer Voters Stark Choice
By Gabriel F. Burczyk, President & CEO

Gabriel F. BurczykThere's little room for nuance when it comes to comparing the political differences between Barack Obama and John McCain, particularly when it comes to the economy.

The good news is that the differences between the two offers voters a clear choice on who they want in a president. The bad news is that one political ideology, either liberal or conservative, is going to be licking its wounds on November 5th.

So, how do the candidates differ on the on the big economic issues of the day? And are there any areas in which Obama and McCain agree? Let's have a look at some of the issues.

MONEY MANAGER SPOTLIGHT
Janus Opportunistic Alpha: Poised and Ready

JanusA value-oriented approach that may offer growth potential--even during periods of uncertainty and volatility as we have witnessed lately. The Janus Opportunistic Alpha Strategy seeks out attractively-valued companies bent on improving their free cash flow and returns on invested capital. Janus is a growth and risk-managed investment manager that takes a contrarian position to create investment opportunities, as securities are often mispriced relative to their intrinsic value. David Decker, the money manager, has a fanatical reputation for rigorous research and research-driven investment strategies, which accounts for the Janus Opportunistic Alpha Strategy's long-term performance record.

Click for an overview of Janus Opportunistic Alpha Strategy
FINANCIAL TIDBIT
Dems vs. GOP... Best Stock Market Returns?

Forget the candidates. Consider the cumulative historical impact of the reigning political party on the stock market. According to a recent study from UBS Wealth Management Research, since 1928, the average return during years with a Democratic president has been 12%, compared to 4% during Republican years. Furthermore, the average return in the first year of a Democratic president has been +10% versus -11% for Republicans. While not exactly a deciding factor when weighing the merits of our nation's presidential candidates, it's an unexpected tidbit that we found interesting.

Median S&P 500 price appreciation by year of the election
cycle and political party of president since 1928


Chart
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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