With the Dow Industrials down more than 10% we have spent more time than usual looking for equity alternatives and safe havens abroad in an effort to stay in the black. Through the end of last week, our equity positions across all accounts remain ahead of all of the major U.S. indices, but they are still in negative territory. Due to the turbulent year, our U.S. equity allocation has been low all year, and fortunately, our international exposure has been even lower. In 2008, international equities have been anything but safe with most of the foreign exchanges posting steep declines. Even emerging stars, China and India, are down 40% and 30% respectively through June 18th.

The one bright spot has been Brazil. The interlinked nature of the global economy has ensured that generally speaking, global equities today are correlated and the opportunity to hedge an equity portfolio by looking abroad is not as successful as it once was. While most of the world readjusts to housing asset valuations and credit crisis Brazil's market is up nearly 16% this year. With new oil discoveries, new mortgages for prospective homeowners, growing infrastructure investment and rising foreign investment, Brazil looks very attractive.