4.13.20032003 First Quarter Client Letter April 13, 2003 Over the past quarter, the U.S. markets have seen extreme volatility, though they finished the quarter nearly where they started. In one quarter, the war began and has nearly ended. Before it started, many investors were wondering what the war would do to the financial markets. As the war approached, the equity markets sold off, pricing in the negative effect war has on an economy. Once the fighting commenced, the markets rose. Now we are presented with the opposite situation. With the war progressing better than anticipated, will the markets rise because the end is near? Or, have the markets already accounted for this, and risen? With this news possibly priced into the market, the financial markets are left to deal with fundamentals such as corporate profits and economic growth. With the economy lagging, this may mean tough times ahead for the market. War success has quickly been priced into the market with the recent market rally. I remain cautious for the following reasons: Businesses are not committing new capital for expansion, even though borrowing rates are at historically low levels. Mutual funds, which control a majority of the market, only have 4.4% in cash. In 1991, after the first Gulf War and prior to the rally in the 1990s, the mutual fund cash levels were 11.4%. The more cash the mutual funds have, the more they will buy equities, and the higher equity prices will go. Both investors and investment professionals are showing signs of complacency. Both are optimistic the next economic boom is just around the corner. The more bullish they are, the less capital they have to purchase additional equities. There are however, long-term optimistic factors to consider. Lower oil prices will act like a tax cut for everyone. The less money consumers spend on fuel, the more money available for other expenditures. Investors have been hoarding cash in money market accounts and bonds. Secondly, more and more advisors are pushing fixed income investments. In the early 1990s, these same advisors were promoting fixed income investments. As the bull market progressed through the 1990s, these advisors switched to promoting equities instead of bonds. In the last two years, they have switched back to promoting fixed income investments again. Is this a sign of the bottom? It may be near the bottom, but not just yet. The market has an uncanny ability to fool the common investor. Here is why we remain optimistic over the long-term. The market has attempted many rallies during the past three-year bear market. Each rally has led investors to believe this is the beginning of the next bull market. Each rally has fizzled out with more severe sell-off’s. When the next bull market begins, the skittish investors will expect it to be another false rally. Instead, the markets will be just beginning a major move up. In the beginning, investors will remain in cash. After quarters of a continued rally, the investor sitting on cash will begin to re-commit the cash into the equity market. Thus, these investors will push the equity market even higher. Subject: Exciting Changes at Aspen Wealth Management It is with great excitement that we announce several changes and additions occurring at Aspen Wealth Management. First, enabled through our continued trust and confidence of you, our clients, we continue to grow and expand our business. We have outgrown our space at 6740 Antioch, and will soon be moving to larger and more functional space at College and Metcalf in south Overland Park. We will be moving into our new space at Lighton Plaza I effective June 1, 2003. Our new address will be 7300 College Blvd, Suite 306, Overland Park, KS 66210. We will be changing our main phone number, but that number has not yet been established. For a short period following our move, all calls dialed into our current main number, 913-432-6792, will be directed into our new number. After that period expires, callers will be notified by recording of the new number to dial. We are also pleased to announce our newest professional staff member who joined us this month. Ms. Brenda Theroff joins us as Office Manager and is excited to assist our clients, as well as oversee administrative functions within the office. Brenda comes to us with broad experiences in the Financial Services industry as well as Information Technology Consulting. We hope you will stop by and visit with us, meet Brenda, and tour our new office space as soon as you can. Thank-you for your business. Sincerely, Trevor Holsinger, CFP     Cory Lagerstrom, MBA, JD             David F. Gasal     Jody Holsinger