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President's Message 
Risk is something we all manage everyday of our lives.  Whether it's eating a second doughnut, joining a pick up game, making friends over the internet, or passing the car in front of us, risk is something we must deal with.  In finance, it is generally assumed that the more risk you assume, the more opportunity you have for greater returns and greater loss.  But in an imperfect world, with imperfect information, the relationships between risks and return can get out of whack.  This happens when we find out that we really don't know what we thought we knew; when a AAA bond backed by mortgages goes into default, when the value of the second home in Florida drops by 50%, when a company's annual sales drop 40% from projections, and when the assets in a 401K drop by 25%.  These disruptions to our "known world" will reveal miscalculations in our risk/return profile and cause us to adjust to the "new" known world at the same time; some people adjusting a lot more than others.  Eventually the "new" world arrives and stabilizes-it is no longer new.  We can all look back on that "old known world and wonder how we could have ever let things get so out of whack.   
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