January 2012 Letter

Written by Greg Bowser, CFP® on .

Asset Management Services, Inc.

4013 East Baker Avenue. ¨ Abingdon, MD 21009 ¨(410) 538-6800

Wednesday, January 18, 2012

Dear Client:

Happy 2012! The Myan calendar ends December 21, 2012 and some are predicting the end of the world as we know it. Some people think the Myans could predict a world changing event many centuries ago. I guess this helps to explain why people still believe that the “Wall Street Pundits” can predict the stock market each year. I guess there is entertainment value in believing someone has predictive powers, because there is overwhelming evidence that the Wall Street Gurus are horrendous at predicting the market’s direction, yet we find ourselves listening to them. I particularly enjoy listening to the jargon explaining why they were wrong last year, but give us their confident opinion for the upcoming year. We, at Asset Management Services, do not try to predict the market direction, we prefer to stay globally diversified and occasionally rebalance.

Our portfolio management system emphasizes a diversified global approach. The fixed income asset class has higher quality shorter term securities. The stock allocations are slightly tilted toward Value Stocks. We have somewhat overweight Mid Cap and Small Cap Stocks. The portfolios also overweight the emerging markets within the International asset class. Studies have shown this to be the most efficient allocation for the long term. However, last year the best performing asset class was the Large Cap Growth. This happens occasionally, but we are committed to our long term strategy which has worked very well in the past. There is a book called “The Investment Answer” by Daniel .C. Goldie, SFP, CFP & Gordon S. Murray, which explains our philosophy in more thoroughly. If you would like a copy of the book, please contact our office. Also, please schedule a meeting if you would like to review this process and your portfolio in more detail.

AMS has been planning for some time now that we were going paperless. Well, that time is here. We are going to become more ecologically friendly and will be able to produce information for you more quickly. We are in the process of converting our portfolio reporting system to Morningstar. Since there is 15 years of data in the system, it may take longer than March 31st to complete. Therefore, the next quarterly report will probably be late due to the conversion time. The new system will provide you with more and better comprehensive reports.

We are excited about this new reporting service. More information will be sent to you about how to login online to retrieve your reports. If you need help setting up the program, someone from the office will be available to assist you. For those of you who do not have computer access or are not comfortable using the computer, we will still offer the paper report for $25.00 per quarter. The cost of paper, printing, and postage has increased significantly over the years. Most custodians charge far more for mailings. Please keep an eye out for more information on our new reporting system over the next quarter.

We are excited about 2012 and are ready for whatever it brings our way. Unfortunately, XM Radio has started using a similar number to AMS. Due to hundreds of calls from XM Satellite subscribers, we were forced to change our 800 number. Please be sure to change our toll free telephone number in your records. It has changed effective immediately to 855-238-6496. As always, if you would like to review of your portfolio or if there has been a change in your life, please call to schedule a review.

Sincerely,

Gregory K. Bowser, CFP®