"Traci Strickland From Sent To SovereignWealth com lane sovereignwealth com"
Traci Strickland From: SovereignWealth.com [email@example.com] Sent: Thursday, August 14, 2008 5:00 PM To: Traci Strickland Subject: 2008-08 Newsletter Having trouble viewing? Click here to see this newsletter as a web page. August 2008 Newsletter In This Issue Family Vacation Provides Critical Insight: the Pleasure, Family Importance of Communication Vacation "The most basic and powerful way to connect to another person is to Provides Critical Insight: listen. Just listen. Perhaps the most important thing we ever give each the Pleasure, other is our attention…." Importance of Rachel Naomi Remen Communication Market On Sunday, July 13, I boarded Delta flight 178 from Atlanta, Georgia to Volatility Abounds - It's a London’s Heathrow airport with my wife, Lou, and our three children: roller coaster Mary Louise (20), Emmaline (16), and Lane, Jr. (13). Approximately 9 ride by any hours and six time zones later, we would arrive on “the continent” and measure begin a wonderful family trip that would enjoy stops in London, Paris, the Amalfi Coast of Italy, and Rome. Although the children had been enjoying their summer vacations for several weeks prior to our So our departure, I didn’t feel like I’d spent much quality time with them. Their summer schedules left little commitment to time for Mom and Dad. When we did find ourselves in the same place at the same time, any number of distractions prevented or interrupted familial dialogue. In fact, in the age of iPods, cell our Sovereign phones (with text messaging), Internet-connected laptop computers, cable television, Facebook, family of clients and dozens of other modern tools designed to facilitate communication, it seems that I have less and less meaningful interaction with my loved ones. is to spend the remainder of 2008 proactively seeking opportunities for direct, personal communication 10/6/2008 with each of you. -B. Lane Carrick The Carrick family at Arc de Triomphe in Paris And the flight to London was no exception. Although Delta has yet to roll out their announced in- flight wireless internet service, they did offer “personal entertainment systems” on the trans-Atlantic flight. Each seat was equipped with a flexible video screen that offered dozens of movies, television shows, music channels, and video games. Instead of conversation, we all retreated to our respective entertainment choices. But the familiar, if disappointing, dynamic began to change in London. First, our cell phones didn’t work. No calls. No text messages. No e-mails. No interruptions. This included my BlackBerry. And, I admit, I suffered short-term withdrawals. But after a few days we all adjusted. We also adjusted to limited Internet access. By the time we arrived in Paris, the children had lost interest in television programming – typically restricted to one English-language channel – CNN Europe. Our family dynamic was further affected by another change to our routine – we shared two or three meals together each day (what a novel idea!). Stripped from contact with the outside world and joined together morning, noon, and night, a dramatic, unforeseen development transpired – we began talking (and listening) to each other. At breakfast, we talked about the activities planned for the day – perhaps a visit to the Louvre, the Eiffel Tower, and the Arc de Triomphe. At lunch, we complained about our aching feet (we walked much more than usual through these European 10/6/2008 cities) as we enjoyed the fabulous foods from the bistros and trattorias of Paris and Rome. And we tried, sometimes with comical results, to communicate in the native language – French or Italian. At dinner, we talked about history, politics, art, and chocolate. Yes, chocolate – which was first turned into an edible treat by a doctor in Paris to flavor Marie Antoinette’s distasteful medicine. I rediscovered a forgotten truth during this time with my family: I really like them. Of course, as a husband and a father, I love my family. But I also like them. They’re fun and interesting. They each saw the art, architecture, antiquities, food, culture, and people of London, Paris, and Rome through different lens, shaped by their unique perspectives and personal interests. While Mary Louise, an Art History major at Tulane, cherished the time we spent viewing some of the great masterpieces of the Italian Renaissance, Lane, Jr. was bored. But Lane, Jr. enjoyed learning about the alligator- filled moat at the Tower of London and was enthralled by the Jack the Ripper tour we took on an overcast, cool London evening. Emmaline loves Rome, particularly seeing the Pantheon and the Piazza Navona at sunset. The Carrick family at the Tower Bridge in London The joy I took from the trip didn’t come from any particular landmark or piece of art. It came from the time spent listening to my wife and children, especially over a long, slow dinner with fresh mozzarella cheese, baked bread, and olive oil (and a little Chianti). It came from seeing them absorb the sights and sounds of their new environments and hearing them express their opinions and share ideas inspired by the day’s experiences. My vacation epiphany involved the pleasure and importance of fully engaged personal communication. As I considered the importance of enhanced communication with my family, I realized that the same dynamics have been at work in my relationship with my Sovereign Wealth Management “family” – both my coworkers and our clients. Direct communication substitutes – faxes, e-mails, newsletters, quarterly statements, etc. – combined with a growing clientele have discouraged face- to-face communication. And the benefits of spending quality time with my coworkers and clients 10/6/2008 should be no less rewarding – professionally – than the time spent with my wife and children, personally. So our commitment to our Sovereign family of clients is to spend the remainder of 2008 proactively seeking opportunities for direct, personal communication with each of you. You bring the mozzarella and we’ll bring the Chianti. See you soon! B. Lane Carrick is Chairman and CEO of Sovereign Wealth Management, Inc. and Sovereign Hedge Fund Management, LLC, and is based in Memphis, TN. He can be reached at (901) 685- 5050 or firstname.lastname@example.org. Market Volatility Abounds - It's a roller coaster ride by any measure In the wake of equities’ 2007 peak, there has been an abundance of volatility in the market. Tremendous uncertainty spawned by the credit crisis, the spike in energy prices, and declining real estate values has investor conviction waxing and waning from one extreme to another. Over the last four decades, the S&P 500 Index has posted an average of 58 days per year with an up or down movement of greater than 1%. From October 1, 2007—the S&P 500’s historical high point—through July, 2008, the index has posted 83 such days, implying an annual rate of 100 days and a 72% increase in this metric of volatility. The frequency of bigger sways punctuates the heightened volatility even more: Since October 1, 2007, The S&P 500 has weathered 28 2% days, compared to a four-decade historical average of just 12. For investors looking to exercise caution and keep money on the sidelines until the big market swings dissipate, counting 1% and 2% days and comparing them to historical trends could be onerous. Another measure of volatility, the Chicago Board Options Exchange Volatility Index (“VIX”), is a popular measure of market volatility. It is calculated by the exchange using forward- looking implied volatility of S&P 500 Index option prices. Referred to by some as the “fear index,” it represents one measure of the market’s expectation of volatility over the next 30-day period. Since the commencement of the measurement of the VIX in January 1990, it has averaged a closing level of 19.11. In the post tech-bubble days it has been significantly lower—from 2003- 2007 the VIX averaged a closing level of 15.98. For comparison, the average VIX level in 2008 thus far has been 23.48, and ended July at 22.94. Some try to use the VIX for its predictive powers. There is a sizable group that contends that when it breaks 30, a market bottom and ensuing rally are likely. There is even some compelling data that can be massaged to support this conclusion. As for me, I’ll stick to using it to quantify what is 10/6/2008 already known: these are uncertain times indeed. The Monthly Index Report for July 2008 Jul- Index QTD YTD Description 08 - - S&P 500 Index* -1.0% Large-cap stocks 1.0% 13.7% - DJIA* 0.3% 0.3% Large-cap stocks 14.2% - Nasdaq Comp.* 1.5% 1.5% Large-cap tech stocks 12.3% - - Russell 1000 Growth -1.9% Large-cap growth stocks 1.9% 10.8% - - Russell 1000 Value -0.4% Large-cap value stocks 0.4% 13.9% Russell 2000 Growth 2.3% 2.3% -6.8% Small-cap growth stocks 5.1% Russell 2000 Value 5.1% -5.2% Small-cap value stocks - - Europe, Australasia & Far East EAFE -3.2% 3.2% 13.4% Index - Lehman Aggregate -0.1% 1.0% U.S. Government Bonds 0.1% - Lehman High Yield -1.3% -2.6% High Yield Corporate Bonds 1.3% Calyon Financial Barclay - -2.7% 5.4% Managed Futures Index** 2.7% 3-mo. Treasury Bill** 0.2% 0.2% 1.6% All returns are estimates as of July 31, 2008. *Return numbers do not include dividends. ** Returns are estimates as of June 30, 2008. Chad Leavitt is the Director of Hedge Fund Administration for Sovereign Wealth Management, Inc. and is based in Denver, CO. He can be reached at (303) 471-0244 or at email@example.com. Click here to send this newsletter to a friend. Sovereign Wealth Management, Inc. 1000 Ridgeway Loop Road, Suite 103 Memphis, TN 38120 Phone: 901-685-5050 If you would no longer like to receive emails from Sovereign Wealth, Please Click Here. 10/6/2008