Congratulations! You survived possibly the worst year in the history of the financial markets -- the likes of which we may never again see in our lifetime. We will be talking about 2008 for decades to come as it will probably be discussed in the same manner as prior generations refer to "The Great Depression".


It is hard to take comfort in the fact that your portfolio may have lost only half of what the S&P 500 lost, especially when that equates to hundreds of thousands of dollars or more. However, when considering all that has happened in just one year (most of which took place in the last 6 months), it explains a lot.

So What Happened in 2008 (or should we say what "didn't" happen)?

• The REAL ESTATE (Housing) MARKET COLLAPSED. Home values declined drastically from their peak in 2005. The low ARMs came due, banks were not lending to refinance and we were upside down in value. Result = Foreclosure.



• CORPORATE GIANTS FELL LIKE DOMINOES: Bear Stearns, Lehman Brothers, Fannie Mae, Freddie Mac, IndyMac, Wachovia, Merrill Lynch, AIG, and so on and so on. Who's next?



• FDIC -- With the fear that many U.S. banking institutions would fail, Americans questioned whether to invest their money in oversized mattresses. Would FDIC protect our savings?



• S&P 500 INDEX DOWN ~37% for the year 2008!* Most bond instruments also underperformed.



• BAILOUT - the most commonly used term in 2008. Congress approved a TARP (Troubled Asset Relief Program) to help bailout the financial industry and help homeowners avoid foreclosures. Congress also agreed to support the big three Automakers (Ford, Chrysler, and General Motors).



• OBAMA - what will the election of the first African-American President mean to us short term and long term? Stability? Higher Taxes?



• GAS PRICES - January '08 gas was $3.05 per gallon. August '08 it was $4.11. By December '08, it was only $1.62.* We sold our big SUV's and bought hybrids and now SUV's are a steal.



• NATURAL DISASTERS - While we were busy worrying about the safety of our money, thousands were killed in the earthquake in China, the terrorist bombings in India, Hurricane Ike in Haiti, and the school collapses in Haiti…..just to name a few!



• BERNIE MADOFF - As if we didn't have enough to worry about, this scam-artist "made-off" with $50 billion of investor's money. A "Ponzi" scheme beyond comprehension.

So What Happened at ASAM in 2008?

• INCREASE IN CLIENT COMMUNICATION - With input from our 2008 Board of Advisors, ASAM increased our level of communication to clients. This includes quarterly conference calls on topics of interest; private "service meeting webinars" with clients that live out of town, and emergency conference calls with updates on current investment and economic situations.



• CREATION OF A NEW WEBSITE - Thanks to the hard work of our internal technology department (Danny), we were able to roll out a new and improved ASAM website. The changes make the website more user-friendly as well as "easier on the eyes". Additionally, the site is updated regularly with new articles and events of interest that will hopefully keep it fresh.



• CREATION OF ASAM "LITE" - There are times when clients and strategic partners introduce individuals to our firm who don't qualify for comprehensive wealth management services. Thanks to the input from our Board of Advisors, we created an "ASAM Lite" platform to help these clients. We clearly communicate the level of service that the firm will provide thereby setting realistic expectations from the beginning. This helps accommodate these new introductions while not diluting the services to you that you come to expect from us.



• DUE DILIGENCE - As has been stated in past years, we do not want you to forget the amount of due diligence that goes on behind the scenes at ASAM. Considering the Bernie Madoff fiasco and other investment blow-ups, it is imperative that we continuously monitor the investments that we are employing in our portfolios. Although we will not be right 100% of the time with our due diligence, we are constantly seeking new investments to help diversify our client's portfolios. Our team travels to meet with the principals of the firms we invest with as well as communicate with current investment managers consistently.

What will ASAM do differently in 2009?

We think we already have a winning recipe for success. The ingredients are as follows:

1. Team Approach - high quality staff with one purpose in mind … client satisfaction



2. TEDI™ - our patent-pending model for retirement income distribution



3. Alternative Investment Options - true diversification during all the volatility where appropriate



4. Compassion - we know how much your money means to you



5. Strong Communication - you need to know that we have your best interest in mind at all times



6. Integrity - with so many unscrupulous people in our industry, you need to be able to trust someone

There is a light at the end of the tunnel. While we can never predict how the financial markets will perform, we feel strongly that there will be a huge rebound…it just may not be until 2010 or 2011.

With all the bad news and pain we have felt in 2008, it is important to be thankful for what we do have.

Thank you again for entrusting ASAM with such an important element of your life.

Let's all hope that 2009 is a much better financial year than 2008!!!!

Warmest Regards,

Stuart Horowitz, MBA, RFC, CFP®
Senior Partner

Andrew G. Rosenberg, Esq. CFP®
Senior Partner