WEB CONTENT---EXP WEALTH ENHANCEMENT

*Incorporate the EXP Bonds tab under the EXP Solutions tab

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Our Services Tab

MISSION

Our mission is to prudently advise our clients in creating wealth, preserving capital and transferring their resources to the next generation and beyond.

PHILOSOPHY

We advocate an alternative investment methodology, where two primary considerations are paramount:

  • Principal protection.
  • Generating incremental cash returns on invested capital and compounding those returns over time for an exponential effect to wealth.

While any investment philosophy, style and program have many risks, we seek absolute returns and client satisfaction, without regard to the performance of the markets, as measured by indices. Diversification is accomplished by constructing flexible portfolios with multiple sources of potential return.

EXP believes the economy, markets and asset valuations are driven by the collective sentiment and that shifts in sentiment have profound effects on financial instruments. Further, we believe sentiment shifts can often times be reflected in discernable patterns of asset price movements, which at times may be measured. EXP seeks, but can in no way guarantee, favorable entry and exit points, in order to achieve gains and limit losses.

EXP Wealth Enhancement rejects two central tents of asset management:

  • Buy and hold with rebalancing
  • Asset allocation models based on Modern Portfolio Theory (MPT)

We believe a ‘buy and hold’ strategy, even with periodic re-balancing, as suggested by many advisors, exposes investor capital to too much risk. Rather, we believe in selling high and buying low. Further, the promise of historical replication of returns in any market, strategy, methodology, or from any particular advisor cannot, and should not, be relied upon.

Many of today’s suggested asset allocation models are based on diversification across multiple asset classes (equities, bonds, commodities, real estate, precious metals, cash, etc.) traded in various markets. Conceptually, this model largely depends on the notion that asset values behave differently, particularly in times of stress. We believe this so called ‘non-correlation’ has not always held up, particularly in the very volatile markets experienced in the past few years. The following chart highlights the, sometimes surprising, correlations of seemingly completely unrelated asset classes:

*CHART*CHART*CHART* **** SOY BEANS vs S+P 500 Q1 2012 **** *CHART*CHART*CHART*

------Today’s Challenges Tab

CHALLENGES

The aftermath of the World Financial Crisis continues to challenge economic circumstances and markets. Periods of extreme market volatility and the uncertain effects on asset valuations have combined to understandably raise the level of trepidation for investors.

We believe the Crisis is the manifestation of a multi decade formation of a cyclical credit bubble and has a multi-century precedent. What are unprecedented in this period are the level of Central Bank intervention, the methodologies employed by the monetary authorities and the extreme level of aggregate debt incurred as a result of those collective actions. No one knows what will befall the World economy.

What were once considered ‘safe havens’ no longer necessarily provide adequate protection. It is common knowledge that ratings agencies failed miserably in the lead up to the bursting of the Credit Bubble, as many highly rated instruments failed to perform. Besides the obvious failings in the mortgage-backed securities sector, in recent years once investment grade rated entities like Lehman Bros., Worldcom, Enron, General Motors and the Republic of Greece all failed to repay bondholders. Some investment grade municipalities in the U.S. have recently defaulted. Investment grade banks have failed and been taken over by government regulators. Finally, credit ‘insurance’, as provided by bond guarantors over the past decades, has let investors down.

We believe ALL financial ‘guarantees’ should be viewed skeptically and questioned. In reality, there is no investment that can offer absolute guarantees. Investors are right to be gravely concerned. And the notion of historical performance of assets repeating themselves, or track records being indicative of future investment performance, should be considered with caution.

Commonly, precious metals, most notably gold and silver, continue to be marketed as ‘safe’ alternatives. Nothing could be further from reality, as these assets have exhibited extreme levels of volatility and prices have fluctuated substantially. Additionally, their price correlation to certain economic circumstances, news events and market movements has not necessarily held as expected, or as posited by many so-called experts.

Finally, other asset classes like equities, commodities, real estate, among others, continue to fool many pundits on a price performance basis, despite their best efforts and seemingly well-reasoned guesswork.

Despite all the challenges investors face in these unprecedented times, EXP believes investors can be optimistic that there are opportunities for incremental returns on invested capital and ways to limit risks to principal. We believe we offer a fresh approach and take our mission to our clients very seriously.

------EXP Solutions Tab

OUR PROGRAM

EXP is not right for every investor and every investor is not right for EXP. We seek a level of client/advisor intimacy where our mutual satisfaction is achieved and rewarded.

The first step in building a long-term relationship is a thorough understanding our client’s needs and preferences, especially as those needs and preferences change over time. Consequently, a client/advisor relationship is a unique and important bond, which must be nurtured and valued over time.

Open and forthright communication is the key to such a relationship. EXP strives to become very familiar with our client’s circumstances and financial objectives, as well as family, lifestyle and many other factors affecting, or being influenced by a clearly understood investment plan, especially as those needs and desires change over time. We seek a high level of client confidence and satisfaction at all times.

INVESTMENT PORTFOLIOS

At EXP, financial resources are stewarded by keeping three principles at the forefront of everything we do:

Capital Preservation

Simply put, EXP seeks to buy low and sell high on behalf of clients investing resources in risk assets. While no guarantees can be made and every investment or investment program involves risk, including the potential loss of principal, EXP actively manages client resources with capital preservation as a primary concern. Balancing risk and reward is paramount and those dynamics can change at any time, especially in periods of heightened market volatility.

EXP utilizes a variety of internal and external tools, including some by independent, fee-based service providers, in order to determine beneficial entry and exit points in various risk assets. Generally referred to as technical analysis, these tools involve various techniques including; charts depicting historical asset prices and projected paths of future price movements, moving averages of asset prices, mathematically driven ratios relating to price movement, sentiment indices and a myriad of other measures. There can be no assurance that EXP will be successful, or will be able to achieve the goals of beneficial entry and exit in risk assets on behalf of clients.

Income Generation and Compounding

EXP strongly advocates and implements income-generating portfolios as the core strategy for all clients. Investment income is generally derived from tangible cash-on-cash generation on invested capital and comes in three forms:

  • Interest
  • Dividends
  • Capital Gains

Since there are no absolute guarantees in ANY investment, EXP believes in wide diversification and seeks to generate income from many sources. We pride ourselves on our research and seek to discover superior relative value for client portfolios through a deep understanding of each investment made.

The potential power of compounding income by committing to a long-term program of reinvesting interest, dividends and capital gains in still more potential income opportunities is immense over time. EXP seeks to access the mathematical function of compounding for an exponential effect to wealth achievement. Again, while there is risk in any investment strategy and program, the power of compounding and the exponential function in mathematics is potentially very rewarding.

The following chart demonstrates the exponential function and the potential power of compounding cash-on-cash returns over time:

*CHART*CHART*CHART*

Efficiency

A myriad of constantly shifting rules, regulations, tax-code provisions and legal frameworks challenge investors, their financial advisors and professional service providers, like attorneys and accountants.

Investor outcomes can be enhanced by a deep understanding of issues affecting client portfolios and the implementation of an overall plan, whereby inside and outside professionals, each possessing a degree of expertise, can help our clients reduce exposure to three significant enemies of portfolio returns:

  • Taxes
  • Fees
  • Inflation

While there is no way to completely eliminate these three drags to performance, a well-reasoned plan and resulting implementation of strategies can help to potentially reduce their negative effects and enhance our client’s experience. EXP seeks to achieve efficiency and deliver results to clients at all times, in everything we do.

EXP seeks to foster a unique relationship with each client and to assist all clients in achieving their financial goals now, and in the years to come.

EXP BONDS

------About Us Tab

OUR PEOPLE (or OUR TEAM)

BIOS*BIOS*BIOS

OUR STORY

Brief description of how EXP was created.

------Contact Tab

CONTACTS---TBD

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CLEARANCE---TBD

DISCLAIMERS---TBD