I’ve been in the financial services business since 1971, so I’ve seen some ugly financial markets. Examples: Jimmy Carter’s extremely high inflation with accompanying double digit mortgage rates; the stock market crash of 1987; and the tech stock implosion of 2000-2003. But I’ve seen nothing like what we witnessed the first two weeks of October this year. Who could have imagined the disappearance of the Investment Banking industry, the failure of large national banks and the near freezing of the credit markets and a nearly 20% stock market loss ALL within fourteen days? In the blink of an eye investors shifted their emphasis from achieving maximum returns to preserving their principal. Our entire financial system was truly in uncharted waters.

As of October 14th it appears that the world’s central banks and governments have taken action that has effectively calmed (for better or worse) the worldwide marketplace.

This begs the question: What could you have done to protect your principal? What can you do going forward? I certainly don’t have a crystal ball and I certainly don’t advocate taking all your money out of the market. BUT…I CAN certainly tell you that my clients who own indexed annuities or indexed life insurance policies are very pleased today because they have not seen their principal reduced by even one dollar the past year while the market losses to investors totals in the TRILLIONS of dollars.

If you want to discuss whether either indexed products could add a layer of security and safety to your financial future please email me at bob@assetstrategiesonline.com or call 407-830-7304. Difficult financial times Always offer great opportunities!

Regards,

Bob J. Baker
Asset Strategies, LLC
www.assetstrategiesonline.com

Circular 230 Disclaimer
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. Federal tax advice contained in this email (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

© 2008 Asset Strategies, LLC