The Final Stretch for 2011

It looks like the stock market got a shot of holiday cheer as major U.S. indexes logged better than 3% gains last week. The Dow is now up 6% for the year, and the S&P 500 is back in positive territory. While many were calling for a so-called “Santa Clause rally,” others were concerned that fears surrounding Europe’s situation would continue to be a drag on the markets.
Last week however, Europe’s troubles were of little account as stocks rallied to their third weekly gain in four after Congress approved an extension of the payroll tax cut to ensure taxes won’t increase on January 1. In addition, tentative signs of improvement seen in government reports on personal spending, income, and housing, all helped boost equity markets last week.

What’s in store for the week ahead? With Wall Street closed for business on Monday, a number of major players on vacation, and few economic reports expected, trading volume will probably be light. Even so, there is something interesting we would like to share with you. According to the Stock Trader’s Almanac, the five trading days before January 1, and the two trading days that follow, typically generate abnormally high returns, yielding positive returns in 31 of the last 41 holiday seasons. Of course, past performance cannot be relied upon to predict future results, and other factors must be considered, but the trend is worth noting.

While many investors have already closed their books for the year, we head into the final stretch eager to end 2011 in the black. Regardless of what happens during the final four trading days of the year though, we encourage you to take comfort in knowing we will keep an eye on things for you. Again we urge you to relax and enjoy some well-deserved time with your family and friends.

Stay tuned for our annual recap due next week!

ECONOMIC CALENDAR:
Monday – U.S. Holiday Observed – Christmas Day
Tuesday – Consumer Confidence, S&P Case-Shiller HPI
Wednesday – EIA Petroleum Status Report
Thursday – Jobless Claims, Chicago PMI, Pending Home Sales

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

Gasoline rose to a six-week high after a U.S. government report that durable goods orders increased last month signaled an improving economy. Prices advanced 8% this week, capping the biggest weekly gain since March.

While some workers are worried about smaller paychecks next year, more than 1.4 million low-income earners will see their wages go up on New Year's Day. Minimum wage rates in Arizona, Colorado, Florida, Montana, Ohio, Oregon, Vermont, and Washington will rise between 28 and 37 cents per hour on January 1, thanks to state laws requiring that minimum wage keeps pace with inflation.

The total value of Americans' retirement assets stood at $17 trillion at the end of September – a drop of 7.5% from the record high of $18.4 trillion recorded on June 30, 2011.
Shoppers will return $46.28 billion in holiday merchandise, a record high, according to the National Retail Federation. At brick-and-mortar stores, holiday returns can boost business because it gets shoppers into the store once more. "If people return something, there's a 70% chance they will buy something else," said Britt Beemer, retail analyst and chairman of America's Research Group.

QUOTE OF THE WEEK for 2012

“Each experience in your life was absolutely necessary in order to have gotten you to the next place, and the next, up to this very moment” – Dr. Wayne Dyer

HEALTH TIP OF THE WEEK:

Wear a Pedometer
New research suggests routinely wearing a pedometer encourages people to walk about an extra mile each day, lose weight, and lower their blood pressure. Aim for at least 30 minutes of brisk walking and a total of 10,000 steps per day.

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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Will a Santa Clause Rally kick in?

Each week, through this commentary, we aim to bring you a brief summary of the most important financial-related news. Our primary goal is to educate you about factors that have the potential to affect your investments, and to help you cut through all the media clutter to find some clarity. Sometimes, finding that clarity can be especially challenging.

Last week, we were faced with a barrage of headlines from all over the world, and each piece of news seemed to have its own unique impact. In the end, investors struggled to make sense of all the news, and stocks ended a roller-coaster week in which all three indexes lost more than 2.5%.

Historically, the stock market has been sensitive to news. But amidst the uncertainty of recent years, its sensitivity has been heightened to an unprecedented scale. Headlines that would have barely made the evening news 10 years ago can easily lead a rally or retreat in a matter of minutes or hours in today’s environment.

Case in point from last week: Fitch put seven European countries on credit watch negative, and the markets retreated. Fitch affirmed the ratings of France, Belgium, Spain, Slovenia, Italy, Ireland, and Cyprus, and the markets rallied. Data came out showing holiday sales slowing, and the markets retreated. Headlines came out showing that holiday shopping boosts confidence in the recovery, and the markets rallied. We could repeat this scenario with housing data, gold prices, oil prices, and nearly any other shred of financial-related news.

What is our point? Don’t buy into the hype! Is it important to monitor world events for signals about how investments could perform? Yes. But is it healthy to dissect every smidge of news and then alter your investment strategy at each sign of strength or weakness? No. When signals are mixed and finding clarity is difficult, it is especially important to stick to your long-term investment strategy. Letting short-term, erratic moves dictate your investment decisions can easily lead to unnecessary losses.

It can be a jungle out there – there’s no doubt about it. But just as you would trust an experienced jungle guide to lead you to safety, please trust us to guide you through these uncertain times. Use the weeks ahead to enjoy some quiet time with your family and friends, and tune out the noise for a little while. We urge you not to let the media steal your focus from the things that matter most.

ECONOMIC CALENDAR:
Monday – Housing Market Index
Tuesday – Housing Starts, Redbook
Wednesday – Existing Home Sales
Thursday – GDP, Jobless Claims, Consumer Sentiment, Leading Indicators
Friday – Durable Goods Orders, Personal Income and Outlays, New Home Sales

Data as of 12/16/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 -2.83 -3.02 -1.87 -2.91 0.86
Dow -2.61 2.50 3.19 -0.93 2.09
NASDAQ -3.46 -3.68 -3.11 0.80 3.08
MSCI EAFE -5.29 -15.4 -14.1 -5.03 2.01
10-year Treasury Note (Yield Only) 2.05 N/A 3.48 4.60 5.16

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:
The U.S. House of Representatives On Friday approved a nearly $1 trillion bill to fund the government through the rest of the fiscal year that runs to the end of September 2012. Republicans and Democrats have been haggling for several months over spending plans for the rest of the fiscal year. The fate of a temporary payroll tax cut, however, was still undecided as of mid-Friday.

Gold futures climbed Friday to break a four-session losing streak, but prices finished the week with a loss of 6.9%.

The final convoy of U.S. troops left Iraq on Sunday, bringing an end to almost nine years of war in which tens of thousands of Iraqis and nearly 4,500 Americans died, media reports said.

Kim Jong Il, the dictator who used fear and isolation to maintain power in North Korea and his nuclear weapons to menace his neighbors and threaten the U.S., has died, North Korean state television reported early Monday.

Quote of the week:

The best of all gifts around any Christmas tree or Menorah: the presence of a happy family all wrapped up in each other. - Burton Hillis (Better Homes and Gardens)


RECIPE OF THE WEEK:
Homemade Eggnog



Who knew making your own eggnog could be so easy?
Recipe by: Sharon Tyler Herbst | from The Ultimate A-to-Z Bar Guide

Ingredients:
12 eggs, separated
1 cup sugar
16 oz. (1 pint; 2 cups) brandy
16 oz. (1 pint; 2 cups) bourbon or dark rum
32 oz. (1 quart; 4 cups) milk
1 tablespoon pure vanilla extract
32 oz. (1 quart; 4 cups) whipping cream
½ tsp. salt
freshly grated nutmeg

Directions:
Beat egg yolks with the sugar until creamy and light. Stir in brandy, bourbon, milk, and vanilla; cover and refrigerate for at least 4 hours, or until very cold. Whip cream until it forms soft mounds; fold into eggnog mixture. May be refrigerated for 1 to 2 hours at this point. Just before serving, beat egg whites and salt to the soft-peak stage; fold into eggnog. Sprinkle with nutmeg.

NOTE: Only use pasteurized eggs when making your eggnog to avoid salmonella.



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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Naughty or Nice for the markets?

Yet again, investors found themselves watching Europe last week – no surprises there – and were apparently pleased with what they saw. Word of a “new deal” incited a rally in stocks Friday that pushed the Dow Jones industrial average up 187 points, or 1.6%, the S&P 500 up 21 points, or 1.7%, and the Nasdaq up 50 points, or 1.9%. All major domestic indexes finished positive for the week on a wave of optimism.

What is this “new deal” everyone’s talking about? Basically, the 17 nations that use the euro agreed to sign a treaty that allows a central authority to oversee their budgets more closely. The agreement is made up of fiscal rules designed to prevent countries from veering further into crisis mode, and to rescue them if they do. The Friday proposals also commit the countries to put their €500 billion ($670 billion) European Stability Mechanism bailout fund into action next year, instead of in 2013.
While Britain chose not to support the plan, the majority of EU members are hailing this as a new beginning. German Chancellor Angela Merkel expressed that Europe has “…achieved a breakthrough to a stability union. A fiscal union, or stability union as I call it, will be developed further, step by step in the years to come." And French President Nicolas Sarkozy confidently boasted, “We're doing everything we can to save the euro.”

Whether this deal will be a new beginning for Europe, or turns out to be little more than political posturing, only time will tell. Either way, we are confident their debt saga is far from over. While tighter fiscal controls are definitely a crucial ingredient in mending this crisis, Friday’s agreement is only a partial solution, and we have seen agreements like this deteriorate before. Until a clear path to fiscal austerity has been established for the region, the markets will keep responding to hype and headlines.

When it comes to investing, rather than reacting to every shred of nice (or naughty) news, we still believe it is better to have a long-term plan and stick to it. We take great pleasure in helping you do just that!

ECONOMIC CALENDAR:
Monday – Treasury Budget
Tuesday – Retail Sales, Business Inventories, FOMC Meeting Announcement
Wednesday – Import and Export Prices, EIA Petroleum Status Report
Thursday – Jobless Claims, Producer Price Index, Empire State Manufacturing Survey, Industrial Production, Philadelphia Fed Survey
Friday – Consumer Price Index

Headlines:
Online sales for the holiday season to date (since November 1 to Friday) totaled $24.6 billion, a 15% increase over the $21.4 billion spent during the same period last year, ComScore reported. Last week's spending totaled $5.9 billion, also a 15% increase over the corresponding period last year.

Anti-Wall Street protesters plan to attempt to block major West Coast ports on Monday. By marching on U.S. ports from California to Alaska, organizers look to call attention to economic inequalities in the country and a financial system they complain is unfairly tilted toward the wealthy.

Scammers across the nation are targeting the Better Business Bureau. They're using BBB's good name to try and spread a computer virus. The scam e-mail says the BBB has received a complaint from one of your customers and says, "We encourage you to use our online complaint system to respond." When you click on the link, it reportedly installs a virus. If you receive one of these e-mails, delete it immediately and do not open the link.

Developing nations led by China and India pledged they’d work toward an agreement that would limit their fossil fuel emissions for the first time, the biggest advance in the fight against global warming in 14 years.

QUOTE OF THE WEEK:

The movie Elf staring Will Ferrell

Santa: That's another thing... Buddy you should know that your father... he's on the naughty list.
Buddy: Nooooo!



GREEN TIP OF THE WEEK:
Stop the Junk Mail

The amount of household garbage in the U.S. increases by about one million tons of trash between Thanksgiving and New Year’s, according to the EPA, and much of that is Christmas gift packaging. If you’re mailing gifts, use recycled packing materials like newspaper and cardboard. Shiny, metallic, and plastic-coated wrapping paper can’t be reused or recycled, but there are lots of wrapping papers and ribbons that are made of 100 percent recycled waste, and gift bags are a great reusable option.


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If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.


Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Dr. Jekyll and Mr. Hyde Market

The story starts with after drinking a potion of his own creation; Jekyll is transformed into the smaller, younger, cruel, remorseless, evil Edward Hyde, representing the hidden side of Dr Jekyll's nature brought to the fore. Dr Jekyll has many friends and has a friendly personality, but as Mr Hyde, he becomes mysterious and violent. As time goes by, Mr Hyde grows in power. After taking the potion repetitively, he no longer relies upon it to unleash his inner demon i.e. his alter ego.

It seems that at times our market is similar to that of Dr. Jeckyll and Mr. Hyde the past two weeks. The market seems to have a ‘split personality’ of sorts.
From the worst Thanksgiving week since 1932 , to the best weekly gain since 2009, last week illustrated how fickle the stock market can be. The Dow Jones Industrial Average finished up 7% for the week, bouncing back from a 5% loss the previous week on news about… are you ready for it… positive developments in Europe.
Basically, several central banks made dollar financing cheaper through swap arrangements, and finance ministers took steps to expand the European Financial Stability Facility. Just as bad news from Europe pushed markets down during Thanksgiving week, good news from Europe pulled markets back up last week. At this point, it should be clear to everyone that we are dealing with highly Europe-charged investor sentiment right now.

So does last week’s rally mean we’re out of the woods and the bulls are back on top? It’s possible, but we don’t recommend counting on it. While some analysts are expecting stocks to maintain their momentum on the “Santa Clause effect” (Stocks have risen in December nearly four out of five times since 1945, according to S&P Capital IQ, and have risen almost 2% in December after dropping in November – as they did last month) , most understand that Europe is still a wild card.

When we see encouraging news and market rallies, it is easy to become excessively positive when we should actually be cautiously optimistic. In the same manner, when we see bad news and steep declines, it is easy to become excessively negative when we should actually be moderately cautious. What is our point? In times of uncertainty and volatility, it is particularly critical to stick to a long-term investment strategy that aligns with your personal goals and risk tolerance. We encourage you to avoid letting short-term market moves and flashy headlines influence your investment decisions. If you have any questions about whether your current financial plan is still right for you, please feel free to reach out to us. We are always here to help guide you through turbulent times.

ECONOMIC CALENDAR:
Monday – Factory Orders, ISM Non-Manufacturing Index
Tuesday – Bank of Canada Announcement
Wednesday – EIA Petroleum Status Report, Consumer Credit
Thursday – BOE Announcement, ECB Announcement, Jobless Claims, Wholesale Trade
Friday – International Trade, Consumer Sentiment
Data as of 12/02/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 7.39 -1.06 1.86 -2.18 0.92
Dow 7.01 3.82 5.78 -0.29 2.20
NASDAQ 7.59 -0.98 1.84 1.77 3.61
MSCI EAFE 9.34 -11.1 -8.09 -3.90 2.30
10-year Treasury Note (Yield Only) 1.97 N/A 3.00 4.43 4.74

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:
It’s hard to believe it’s already been 10 years since Enron filed for bankruptcy on December 2, 2001. At the time the largest bankruptcy in U.S. history – the once high-flying energy company cemented its reputation as the very symbol of corporate fraud.
The unemployment rate fell by 0.4 percentage points to 8.6% in November, and nonfarm payroll employment rose by 120,000, the U.S. Bureau of Labor Statistics reported Friday. Employment continued to trend up in retail trade, leisure and hospitality, professional and business services, and health care. Government employment continued to trend down.

Treasury Secretary Timothy F. Geithner will head to Europe next week to meet with French President Nicolas Sarkozy, new Italian leader Mario Monti, and other key government officials to discuss their efforts to resolve the debt crisis. Geithner, who has been urging European leaders to take more forceful action, will travel there for three days beginning Tuesday "for discussions with his counterparts on their efforts to reinforce the institutions in the Euro area," the Treasury Department said Friday.

The coming year-end spending spree after so much debate over budget deficits shows just how hard it is to stem the government's flow of red ink. Lawmakers are poised to spend $120 billion or so to renew a Social Security tax cut that averaged just under $1,000 per household this year. They're ready to commit up to $50 billion more to continue unemployment benefits to people out of work for more than half a year.

Quote of the week

‘Know that everything will happen at just the right time. At the right place, with just the right people’ Wayne Dyer


Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Worst Thanksgiving week for the markets since 1932

It was another brutal week for stocks as fears related to Europe’s debt situation dominated headlines. According to CNBC, the S&P 500 logged its worst Thanksgiving week since 1932. Ouch! For the week, the S&P 500 fell 4.7%, giving back almost two-thirds of its October gains.

Another factor that contributed to the poor performance is that trading volume was exceptionally light for the week as investors pulled away from their computers to enjoy some holiday relaxation. The day after Thanksgiving is typically one of the lightest volume days of the year, and true to form, only 3 billion shares (less than half the daily average) changed hands on major exchanges as the stock market closed early at 1 pm.

Even though the U.S. economic picture keeps improving, investors continue looking to Europe for signals. And unfortunately, the signals coming out of Europe are a mixed bag at best. Despite hopes that new leadership can pull the region out of crisis, more countries continue to struggle. Hungary’s credit rating was downgraded to junk status by Moody’s last week. Belgium, which has struggled to implement spending cuts after 18 months without a government, was downgraded on Friday to AA from AA+ by Standard & Poor's. Italy paid a record 6.5% to borrow money over six months on Friday, and its longer-term funding costs soared far above levels seen as sustainable for public finances. High debt yields from major economies such as Spain, France, and Germany suggest investing in the region is perceived as being more risky. And last week’s poor auction of German bonds raised concerns that the debt crisis is spreading to Europe's core. This rash of negative news is really disturbing investors.

To quote Brian Lazorishak, portfolio manager at Chase Investment Counsel "This market is going to continue to be driven by what's happening in Europe. If things seem to be falling apart, nothing else will matter. If it looks like there's a way out – a light at the end of the tunnel in Europe – that could spark a decent rally from where we are now.”

ECONOMIC CALENDAR:
Monday – New Home Sales
Tuesday – S&P Case Shiller, HPI, Consumer Confidence
Wednesday – ADP Employment Report, Productivity and Costs, Chicago PMI, Pending Home Sales Index, EIA Petroleum Status Report, Beige Book
Thursday – Motor Vehicle Sales, Jobless Claims, ISM Manufacturing Index, Construction Spending
Friday – Monster Employment Index, Employment Situation Report

HEADLINES:
Black Friday sales increased 6.6% to the largest amount ever as U.S. consumers shrugged off 9 percent unemployment and went shopping. Consumers spent $11.4 billion, ShopperTrak said in a statement yesterday. Foot traffic rose 5.1% on Black Friday, according to the Chicago-based research firm.

Did you skip the lines on Black Friday? There's still Cyber Monday -- and analysts are expecting an abundance of deals to bring in record online sales this year. Andrew Lipsman, an industry analyst at data tracking firm ComScore, said sales for the one-day shopping event are projected to hit a record $1.2 billion this year.
Last week, Congress's special 12-member deficit-cutting committee failed to agree on measures to address U.S.'s fiscal woes. It marked the third year in a row that taxpayers headed into December with major tax-code issues unaddressed. Lawmakers have a lengthy to-do list. The 2% Social Security payroll-tax cut for employees expires at the end of 2011. So do a host of other provisions, including a fix to keep the alternative minimum tax from expanding to millions more taxpayers in 2012, and an extension of the popular IRA charitable contribution for people older than 70½.

Oil prices rose towards $108 on Thursday, helped by bigger-than-expected stock draws in the United States and tensions around Iran.

QUOTE OF THE WEEK:
Doing what you love is the cornerstone of having abundance in your life. Dr. Wayne Dyer


Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.


Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Thankful for Good News underneath the headlines

More than any other time of year, this week is one when people strive to count their blessings. There is no doubt being appreciative for what we have leads to a better, more satisfying life. It is wise to reflect upon the good things we enjoy, for it is one of the actions that can help us deal with the challenges we face.

During the past few years, nearly every corner of the globe has been affected by the financial crisis in some way. Even now, with the recovery well under way, we still feel the effects of high unemployment, a weak housing market, debt issues in the Eurozone, and a volatile stock market. On top of everything else, the media has a tendency to lead with what sells – sensationalism and bad news. So is there any good news out there? Definitely! Here are some developments to be thankful for:

- The employment picture is improving. The economy added 80,000 jobs in the month of October, and the unemployment rate fell to 9%. Economists are encouraged by signs companies are not cutting workers, and they say November's jobs report could be even better. The weekly jobless claims reports for the past three weeks have shown improvement.
- The housing market is showing signs of life. The Commerce Department reported that building permits, an indicator of future activity, surged 10.9% during October. In related news, the share of households delinquent on their mortgage payments has fallen to the lowest level since the end of 2008, offering signs that modest job gains are stemming further damage in the battered U.S. housing sector.
- Retail sales are up. American shoppers gave a better-than-expected boost to retail sales in October and left retailers with an encouraging outlook for the fourth quarter. Bloomberg reports a 0.5% gain followed by a 1.1% increase in September, according to figures released Thursday by the Commerce Department. Consumer spending accounts for roughly 70% of the US economy, and its recovery is essential.
- People are more optimistic about Europe. Treasury Secretary Timothy Geithner said Tuesday that Europe was making gradual progress in coming to grips with its financial crisis. "This is absolutely within Europe's capacity to solve and it's within their ability. It's within their grasp, it's within their reach," he said.
- Leading economic indicators are strengthening. The Conference Board's Leading Economic Indicators Index rose 0.9% in October, outpacing increases in the previous two months and providing some grounds for hope in economic growth to come. The index, comprised of 10 components, is intended to signal economic trends by taking a comprehensive look at the data. This month, nine out of 10 indicators were positive.

While things are still far from perfect, and caution must be exercised when making investment decisions, we are grateful to see a more positive U.S overall picture gradually emerging.

Regardless of what the headlines include in the week ahead, we encourage you to tune out the noise. Put down your Wall Street Journal, turn off CNBC, and enjoy some quiet time with your family and friends. We know you’ll be glad you did!

ECONOMIC CALENDAR:
Monday – Existing Home Sales
Tuesday – GDP, FOMC Minutes
Wednesday – Durable Goods Orders, Personal Income and Outlays, Jobless Claims, Consumer Sentiment, EIA Petroleum Status Report
Thursday – U.S. Holiday, Thanksgiving

QUOTE OF THE WEEK:
“Make it a habit to tell people thank you. To express your appreciation, sincerely and without the expectation of anything in return. Truly appreciate those around you, and you'll soon find many others around you. Truly appreciate life, and you'll find that you have more of it.” – Ralph Marston

RECIPE OF THE WEEK: Pumpkin Pie made simple (Ken Mahoney’s recipe)
Ingredients
• 1 cup white sugar
• 1/2 cup packed brown sugar
• 1/4 teaspoon salt
• 2 teaspoons ground cinnamon
• 2 eggs
• 1 (15 ounce) can pumpkin puree
• 1 1/4 cups milk
• 1 (9 inch) unbaked pie crust
Directions
1. Preheat oven to 350 degrees F (175 degrees C).
2. In a large mixing bowl, stir together white sugar, brown sugar, salt, and cinnamon. When these ingredients are well mixed, stir in the eggs followed by the pumpkin and milk. Transfer mixture to the pie crust.
3. Bake at 350 degrees F (175 degrees C) for 1 1/2 hours, or until a toothpick inserted into the pie comes out clean. Cool before serving.


The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

European Politics Continue to Move Markets

It was another yo-yo week for the stock market as ongoing worries surrounding Europe’s debt crisis kept investors in suspense. The choppy period eventually ended with a rally on Friday as welcome news of a political shake-up in Greece and Italy boosted confidence that there will be further progress toward a solution.
Greek Prime Minister George Papandreou has been replaced by former banker and European Central Bank Vice President Lucas Papademos , while Italian Prime Minister Silvio Berlusconi, who resigned on Friday, will likely be replaced by former EU Commissioner Mario Monti. The world will be watching as new leadership in both countries fight to implement reforms quickly and aggressively. Just Saturday, the Italian lower house of parliament approved a series of austerity measures demanded by Europe to shore up confidence in the country's economy. It passed by a vote of 380 to 26.

Why should any of this matter to Investors? While Greece is only the 32nd largest economy in the world, Italy holds the 8th spot, and is the 3rd largest in Europe. If these two countries can get their acts together, other debt-laden countries in the region will have a model to follow. If they fail to create change, the consequences could be far-reaching. Europe as a whole makes up 25-30% of the global economy, and millions of American jobs depend on stability and growth there. To quote Jacob Kirkegaard of the Institute for International Economics: “Europe is by far our biggest trading partner. It’s where most of our exports go. It’s where we have most of our foreign direct investments. US multinational corporations are in Europe.”

While it is unlikely that problems in Europe will cripple the American economy, we are connected to Europe in many ways, and investors know that. As long as Europe’s future remains hazy, stocks will likely continue to react to headlines from across the sea, as we have seen in recent months.

ECONOMIC CALENDAR:
Tuesday – Producer Price Index, Retail Sales, Empire State Manufacturing Survey, Business Inventories
Wednesday – Consumer Price Index, Industrial Production
Thursday – Housing Starts, Jobless Claims, Philadelphia Fed Survey
Friday – Leading Indicators



HEADLINES:
Moody's Investors Service is reviewing the risk to Penn State's reputation and finances in the wake of a child sex abuse scandal that has rocked the university. In coming months, the credit rating agency will evaluate whether the university should be downgraded. Penn State carries the second highest credit rating, reflecting very strong student demand and a strong national academic brand. The university has about $1 billion in rated debt.

Dubai’s fast-growing airline Emirates kicked off the Middle East’s biggest airshow Sunday with a huge order for 50 Boeing 777s, marking the U.S. aircraft maker’s biggest-ever single order in dollar terms.

The Securities and Exchange Commission admitted Friday that it had disciplined eight employees over their handling of the $50 billion Bernard Madoff Ponzi scheme without firing any of the workers. The disciplinary actions, which drew jeers from some victims of the investment scandal, prompted a ninth individual to leave the agency before the punishment was finalized. The actions were meted out over the past year and weren't disclosed by the agency until an article on the actions was published online Friday by the Washington Post.

QUOTE OF THE WEEK:
“If you want to feel rich, just count all of the things you have that money can't buy.” - Unknown


Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

US Economy is beating expectations

If there is one factor with the greatest potential to mend our economy, it is a steadily improving employment picture. How so? When you look at the U.S. economy as a whole, it is primarily supported by consumer spending. In order for consumers to spend, they must have a measure of disposable income. In order to have disposable income, Americans must have jobs.

To look at it another way: As the employment situation improves, consumer spending typically increases, thus creating additional demand for goods and services. As demand for goods and services grows, more production is needed, thus creating more jobs, and so on. At risk of oversimplifying, this combination of factors explains the cycle of a healthy economy.

So are we seeing improvement in the nation's jobs picture? Yes. One year ago, the unemployment rate was 9.7%. As of October's report, it dropped to 9%. On average 152,000 jobs have been added each month during the same time period, for a total of 1.8 million jobs. In addition, the workweek has lengthened and wages are up 1.8%. All of this shows that the employment picture is gradually improving. Interestingly, October also showed improvement in chain store sales. Overall, the 23 major U.S.-based retailers that report mont

hly results posted a composite 3.4% gain, according to Thomson Reuters data.
Does this mean we are completely out of the woods? Not necessarily. For the most part, American wallets aren't fat enough to push the economic expansion into hyperdrive. Even the 1.8% wage growth mentioned above isn't enough to keep pace with current inflation rates. We still have a long way to go to reach our full potential, but things are moving in the right direction.

ECONOMIC CALENDAR:
Monday – Consumer Credit
Tuesday – Redbook
Wednesday – Wholesale Trade, Ben Bernanke Speaks at 9:30AM Eastern
Thursday – International Trade, Jobless Claims, Import and Export Prices, Treasury Budget
Friday – Consumer Sentiment
Data as of 11/04/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 -2.48 -0.35 2.63 -1.63 1.53
Dow -2.03 3.50 4.80 0.00 2.85
NASDAQ -1.86 1.25 4.22 3.05 5.39
MSCI EAFE -6.24 -9.30 -10.4 -3.07 2.72
10-year Treasury Note (Yield Only) 2.31 N/A 2.48 4.72 4.35

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:
U.S. stocks stayed under pressure with all major U.S. indexes falling about 2% for the week. Investors remained wary over whether Greece could default on its debt and what that might mean for the global financial system.

European leaders are hoping China will be a major contributor to a $1.4-trillion bailout fund, but many in the Asian nation are uncomfortable with that prospect. They don't think China should shift its foreign trove of U.S. Treasury bonds and debts of other nations to fund the financial recovery of Greece and some of its troubled Eurozone neighbors, analysts say. One reason: Europeans are still better off than Chinese.

A new national poll shows neither Wall Street nor Occupy Wall Street conjuring up strong favorable impressions among the American public. Among 1,005 adults surveyed, 35% had a favorable impression of the protest movement that began in New York City and gained support worldwide. Only 16% could say the same for Wall Street and large corporations. 29% had a favorable impression of the tea party movement and 21% for government in Washington.

QUOTE OF THE WEEK:
“Happiness depends more on how life strikes you than on what happens.” – Andy

Up, Down, Up… What Now?

In its longest winning streak since January, the S&P 500 has rallied for four straight weeks, adding 14% in October alone. According to a Bloomberg article published on Saturday, this puts the index on track for its biggest monthly gain since 1974! The Dow Jones Industrial Average similarly scored an 11% gain this month and just logged its fifth week of gains.

In comparison with the near 20% decline we saw during July and August, it certainly seems like the stock market has a split personality. What‘s causing all these ups and downs? While many factors are at play, the market moved downward over the summer based primarily on two assumptions:

1) That the U.S. was entering another recession.

2) That the Eurozone financial system was on the verge of collapse.

When neither of these things occurred, investors became uncertain – waiting and watching every headline for signs of what would come next. This led to the heightened levels of volatility we experienced in September.

What led to the rally? Frankly, the crisis atmosphere has died down. European Union leaders announced a “deal” on debt crisis measures early Thursday that aims to resolve issues in Greece, instability in the banking sector, and their sorely deficient bailout fund. Equities also climbed after the government announced that the U.S. economy expanded 2.5% in the third quarter; its fastest pace in a year.

So are we out of the woods? Not completely. We are wise to temper our expectations for the moment, as many details about Europe’s plan and how it will be implemented still remain unsettled. Other factors are also worth keeping an eye on. Earnings season is still under way, and 100 more companies are set to report this week. The nation’s highly anticipated jobs report, due Friday, will be in focus. And as the Federal Reserve concludes its two-day meeting on Wednesday, investors will be watching for signals regarding whether a third round of quantitative easing, or QE3 is on the way.

As always, we pledge to monitor the relevant issues, and to keep you informed about any factors that have the potential to shape your financial future.

ECONOMIC CALENDAR:
Monday – Chicago PMI
Tuesday – Motor Vehicle Sales, ISM Manufacturing Index, Construction Spending
Wednesday – ADP Employment Report, FOMC Meeting Announcement
Thursday – Jobless Claims, Productivity and Costs, ECB Announcement, Factory Orders, ISM Non-Manufacturing Index,
Friday – Employment Situation


HEADLINES:
Treasury 30-year bonds dropped for a fifth week, the longest skid in more than two years, as a deal reached by European leaders to tame the region’s debt crisis fueled appetite for higher-yielding assets.

Europe’s appeal for Chinese help has come under fierce criticism for potentially weakening their negotiating position in political and economic disputes with Beijing. On Sunday, Eurogroup chairman Jean-Claude Juncker said it made sense for China to invest its surplus in Europe to help the region overcome its debt crisis, but this would not involve political concessions.

As stimulus funds dry up, cash-strapped states are facing steep rises in Medicaid spending, forcing them to slash services and trim costs. States will have to spend another 28.7% on Medicaid this fiscal year - by far the largest increase ever, according to new data released by the Kaiser Family Foundation Thursday.

Sales of new homes, a benchmark indicator both for the housing market and the overall economy, rose slightly but remained slow in September. Sales reached a 313,000 annual rate in September, 5.7% more sales than the revised estimate for August, according to a monthly report from the Census Bureau released Wednesday. But sales were off 0.9% compared with 12 months earlier.

QUOTE OF THE WEEK:
‘You are never too old to set another goal or to dream a new dream.” Les Brown

To think about:
It’s important to focus on one thing at a time. Even in the Roman times they understood this with their Proverb ‘The man who chase two rabbits catches none.”


RECIPE OF THE WEEK:
From Marcello’s
Penne Vodka e Radicchio


Penne Vodka e Radicchio
Penne with Pink Vodka Sauce and Radicchio, Serves 4
4 tbsp. extra virgin olive oil
2 small shallots, chopped
2 oz. Parmigiano Reggiano or Grana Padano
1/4 stick of butter
4 oz. heavy cream
1 lb. penne pasta
1 lb. radicchio, julienne
1 oz. vodka
2 cups tomato sauce
pinch of Italian red pepper
pinch of fresh parsley
In medium pan, sauté shallots and radicchio in butter and olive oil. Stir for 2-3 minutes. Add red pepper and vodka and flame it.
Gradually add tomato sauce and heavy cream. Cook for 10 minutes over low flame. Cook pasta and cook until al dente. Drain and stir in sauce. Garnish with Parmigiano and parsley.
Wine suggestion: Valpolicella/Amarone or one of Marcello’s favorites: Allegrini Palazzo della Torre


Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues.If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.

Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

Europe vs. Earnings for the markets

It’s an interesting time for the stock market. We’re in the middle of a healthy earnings season, economic news is modestly positive, and yet, investors can’t pull their eyes away from the drama in Europe.

On average, 60% of companies in the S&P 500 are beating earnings estimates since the reporting season began this month, and numbers for revenue are coming in even better. The number of people claiming unemployment benefits declined this week, housing construction picked up last month (at least for apartment buildings), and inflation remains low. Add to this the fact that many analysts are saying stocks are undervalued right now , and it would have been reasonable to expect a stock market rally last week. Instead, what we got was a roller coaster ride that eventually ended the week virtually flat. The Dow and S&P rose a little over 1%, while the Nasdaq fell 1%.

Europe is clearly dominating investor sentiment right now, leaving the markets vulnerable to every shred of bad news. With good news, we see stocks push upward. With bad news, they pull back. All of this pushing and pulling is keeping stocks in somewhat of a no man’s land where valuations look good but global economic concerns are scaring people away from them. At the moment we seem to be in a trading range.
Meanwhile, European leaders are scrambling to solve the crisis. And while the outcome of all their meetings is impossible to predict, expectations for a bold and reasonable plan are high. If a concrete plan comes together, it is likely that the markets will respond positively. If a plan doesn’t come together, the bumpy ride will probably continue.

While progress in Europe has been painfully slow, it is starting to look like their leaders are taking things more seriously. If nothing else, most would agree that we are closer to the end of this crisis than to the beginning. And that is definitely good news!

ECONOMIC CALENDAR:
Tuesday – S&P Case Shiller HPI, Consumer Confidence
Wednesday – Durable Goods Orders, New Home Sales
Thursday – GDP, Jobless Claims, Pending Home Sales Index
Friday – Personal Income and Outlays, Employment Cost Index, Consumer Sentiment


HEADLINES:
On Friday, President Obama announced that the United States would withdraw its forces from Iraq by the end of the year. Although the most heart-wrenching costs of the Iraq war come in the form of human lives, Obama's decision is also a major step toward putting the United States on a more sustainable fiscal path.
The U.S. Senate adopted a measure on Thursday that would raise the maximum size of a home loan backed by mortgage companies Fannie Mae, Freddie Mac, and the Federal Housing Administration to $729,750.

The Occupy Wall Street protests are rapidly spreading around the world. St. Paul's Cathedral has closed to the public because Occupy London Stock Exchange protesters camped outside, church officials said Friday.

Federal Reserve officials are starting to build a case for a new program of buying mortgage-backed securities to boost the economy, though they appear unlikely to move swiftly. The idea would be to target any new efforts by the central bank at the parts of the economy that are most severely impeding a recovery – the housing and mortgage markets – by working to push down mortgage rates.

QUOTE OF THE WEEK:

“Those who start with too litte money are more likely to succeed than those who start with too much.Energy and imagination are the springboards to wealth creation. “
Brian Tracy

RECIPE OF THE WEEK: From Marcello’s in Suffern
Tiramisu

1 lb. mascarpone cheese or cream cheese, plain
4 egg yolks
1 cup marsala wine, or any sweet wine
4 tbsp. sugar
10 oz. ladyfingers, or spongecake
3 cups espresso, or verystrong black coffee
cocoa to decorate
Mix sugar, marsala and eggs in copper bowl or double boiler and cook for 5 minutes. Let cool. This mixture is called zabaglione.
Blend the mascarpone cheese with the zabaglione until smooth.
Spread 1/3 of the cream mixture in the bottom of a square pan 2” deep. Dip the ladyfingers individually in espresso and place uniformly on top of cream mixture. Add another 1/3 of cream mixture and repeat another layer of ladyfingers. Add the last of the cream and refrigerate for 3 hours. Cut into squares and sprinkle with cocoa powder.

From Ken’s book Now What? A guide to Retirement during volatile times

Not Your Father's Retirement
Unlike your parents’ generation, most baby boomers have had more than one job or career, and don’t have a generous pension plan to fall back on at retirement. While the post war baby boomers do have some investments that were unknown to previous generations, like Roth IRAs and 401(k) plans, your parents had a safety net, while you must fly solo.

Overall, you’ll live longer and healthier lives than your parents, so you’ll need money for a longer period of time. To further complicate your financial burdens, you may have your own parents and children to care for and help support.

And you’ll likely have more energy and time for living out your personal retirement dreams, unlike many of our parents, who didn’t live long enough, or healthy enough, to enjoy their Golden Years to the fullest. You also have end of life decisions, needs, and opportunities that no generation before yours could benefit from ... or had to face.

Fill (Not Kill) Your Time
“Nobody on his deathbed ever said, ‘I wish I had spent more time at the office.’”
-- Paul Tsongas, the late senator from Massachusetts

Without the structure of that office where you dutifully reported 5 days a week … or more … you’ll have a lot of time on your hands, and a lot less that you have to do with it. Now that you can finally choose how you’ll spend your time, will you choose a new career, a part-time job, leisurely hours on the golf course, a stint back at school, volunteer work, travel, or all of the above?

Who you spend your time with matters as much as how you choose to spend that time. Sometimes, in the rush to succeed, we forget to involve our loved ones in the day to day activities of our working lives, or invest our time and energy in those people and things that matter most to us

Making the most of your relationships with loved ones now, be they friends or family, young or old, can make a huge difference in the quality of your retirement years. In the end, folks with close ties to family and friends tend to live longer, happier lives ... no matter how rich or poor they may be.



Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Is the market ready for a comeback?

Just a couple of weeks ago, on October 3rd, the S&P 500 was down 12.6% for the year and things weren’t looking too good for a comeback. Since that time, it has trimmed the loss to only 2.6% and needs to gain just 33 points to get above the 1,257 where it started the year. If the S&P 500 finishes this year with a gain, it will be its biggest comeback since 1984!

What has caused this turnaround? One reason is that investors are becoming more confident that Europe will protect its banks from huge losses on Greek bonds if that country fails to make good on its debt. Another reason is that many people still think stocks are undervalued and that company earnings are going to be better in the third quarter than many analysts expect.

Since July, analysts have continually cut their earnings estimates based on fears that the U.S. is heading into a recession. Much to their surprise though, positive reports on retail sales, applications for unemployment benefits, and the number of jobs added in August have been better than expected. So while some have been pricing the market in expectation of the worst, things haven’t been as bad as many expected.
Seasonal investor behavior could also be at play here. If you look at the 30-year time period from 1981-2010, you will find that the average price return for the S&P 500 Index has been 7.14%. While this is significant, it is even more impressive that the index ended positive 24 out of 30 years, or 80% of the time! "Positive market psychology hits a fever pitch as the holiday season approaches and does not begin to wane until the spring," according to the Stock Trader's Almanac.

While Europe’s debt problems still aren’t solved, and it is definitely too early to count on gains for the year, we are happy to see this positive momentum in the stock market and hope it continues.

ECONOMIC CALENDAR: Monday – Empire State Mfg Survey, Industrial Production
Tuesday – Producer Price Index, Treasury International Capital, Housing Market Index, Ben Bernanke Speaks at 1:15 PM ET
Wednesday –Consumer Price Index, Housing Starts, EIA Petroleum Status Report, Beige Book
Thursday – Jobless Claims, Existing Home Sales, Philadelphia Fed Survey, Leading Indicators

Data as of 10/14/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 5.98 -2.63 4.33 -2.07 1.22
Dow 4.88 0.58 4.93 -0.53 2.46
NASDAQ 7.60 0.56 9.55 2.63 5.66
MSCI EAFE 6.41 -8.74 -7.08 -2.96 2.64
10-year Treasury Note (Yield Only) 2.07 N/A 2.49 4.81 4.66

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

Earnings season is in full swing as the week ahead includes reports from nearly half of the Dow's 30 components, including Intel, McDonald's, and General Electric, and 96 members of the S&P 500 including, Apple, Southwest Airlines, and Chipotle Mexican Grill. S&P 500 company earnings are expected to have climbed 23% in the third quarter of 2011, according to earnings tracker Thomson Reuters. Revenues of the companies in the benchmark index are expected to have risen 10%.

France and Germany have less than a week of frantic negotiation ahead to resolve key differences on a “comprehensive plan” to end the Eurozone sovereign debt crisis after the world’s leading finance ministers put the ball firmly in their court over the weekend. The Group of 20 richest nations told the Eurozone that by the European summit next Sunday it should: agree on the losses the private sector should take on Greek debt; arrange a credible plan for the recapitalization of Europe’s banks; and install a firewall to protect other countries from Greece’s woes.

Throngs of Apple fans lined up in the wee hours Friday outside the company's flagship store in Manhattan to be among the first to get their hands on the new iPhone 4S. Two hours before Apple's new smartphone was slated to go on sale, hundreds of aspiring buyers filled the plaza outside the Fifth Avenue glass cube, echoing scenes that had already played out earlier in the day in Australia, Japan, Germany, France, and other Apple stores around the world.

Investors are hoping for a 4th quarter rally


The S&P 500 has produced a positive total return in the 4th quarter (i.e., October-November-December) in 16 of the last 20 years (i.e., 1991-2010), including a +10.7% gain last year. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: BTN Research).

The Bureau of Labor Statistics released its monthly Employment Situation Summary on Friday, and the data conclusively proves that the U.S. is not in a recession. To many the data would seem to indicate that it also shows that the odds of entering into one are much lower than some reports in the media might suggest.

Nonfarm payroll employment edged up by 103,000 in September, and increased by 202,000 if you include upward revisions for July and August. This significantly outpaced consensus expectations of a mere 60,000 gain. And while the report reflected the return of about 45,000 Verizon workers who had been on strike in August, the increases are still significant. Also striking is the fact that the number of weekly hours per worker increased from 34.2 to 34.3. While that may not seem like much of a jump, it is actually the equivalent of adding 320,000 jobs!

If you take a look at the jobs numbers over the past year, you will see that private sector payrolls have grown by 1.8 million, the workweek has lengthened, and hourly wages are up 1.9%. And while we acknowledge that the labor market is still far from operating at an optimal level, we are definitely seeing improvement!

As we hope this positive trend in hiring will continue, only time will tell if it can be more than a momentary bright spot. In the weeks ahead, investors will be looking for signs on the health of the economy from corporate earnings and what is still the biggest elephant in the room: Europe’s debt crisis. We will continue to monitor developments in these and other areas and will work diligently to keep you informed.

ECONOMIC CALENDAR: Monday – U.S. Holiday: Columbus Day
Tuesday – FOMC Minutes
Thursday – International Trade, Jobless Claims, EIA Petroleum Status Report, Treasury Budget
Friday – Retail Sales, Import and Export Prices, Consumer Sentiment, Business Inventories

Data as of 10/07/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 2.12 -8.12 -0.22 -2.88 0.78
Dow 1.74 -4.10 1.41 -1.26 2.17
NASDAQ 2.65 -6.54 4.01 1.56 5.44
MSCI EAFE 2.51 -14.2 -10.8 -3.51 2.32
10-year Treasury Note (Yield Only) 1.92 N/A 2.40 4.70 4.50

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:
Steve Jobs, the co-founder and board chairman of one of the world’s greatest companies, will long be remembered as a remarkable man. We have truly lost a great visionary who enriched the lives of millions by means of technology. Born in 1955 to a world of rotary phones and room-sized computers, he left behind a world where over 100 million people carry a small device called an iPhone – which is both a phone and a computer – in their pockets. Steve Jobs is a man who will unquestionably be missed.

Business-jet sales may increase worldwide starting in 2012 as emerging-market demand picks up. Purchase expectations are growing in Asia, followed by the Middle East and Africa, while the free-fall in developed markets like North America following 2008’s recession has stabilized, according to an annual survey of 1,500 companies by Honeywell International Inc., a New Jersey-based avionics and cockpit-instruments maker.

Consumers cut their borrowing in August by the most in 16 months. Fewer people used their credit cards. And a measure of demand for auto and student loans fell. Total borrowing dropped $9.5 billion in August, the Federal Reserve said last week. In July, borrowing increased $11.9 billion.

While the nation added jobs last month, public schools lost 24,400 positions – the most of any category. Local government in total shed 35,000 jobs. Teachers continue to get pummeled as state and local governments digest budget cuts for fiscal 2012, which began in July in most states.

QUOTE OF THE WEEK:

Worse Quarter since the Fall 2008, What’s next?

The Market had it’s worse quarter since 2008. The leading averages have now been down five months in a row. The S&P 500 lost 14% for the 3rd quarter. European markets lost 23% for the same period. Here is a recap of the past 3 months:

July – After a volatile first half that eventually ended U.S. stocks in positive territory, the debt ceiling debate quickly took center stage. As policymaker’s debated ways to cut spending and raise the nation’s borrowing limit, stock markets faltered.

August – Following an eleventh hour debt ceiling compromise, Italy rose to the forefront of debt problems in Europe and anemic economic news pushed investor sentiment downward. As fear dominated the markets, major indexes erased their gains for the year during the first week of the month. Hitting especially close to home, S&P downgraded the nation’s bond rating from AAA to AA+ on August 5th.

September – After a brisk market rally early in the month, European debt woes dominated investor sentiment once again. By the middle of the month, tables turned dramatically as many asset classes experienced their worst weeks in years. Even gold faced its largest monthly fall since October 2008. In conjunction with persistent concerns about European debt and a weakening U.S. economy, the Fed's Open Market Committee (FOMC) launched “Operation Twist” on September 21st, leading to further selloffs.

In reading the quick summary above, it’s easy to see why investors could be forgiven for feeling somewhat dazed and confused. The last three months have been rough. The stream of bad news coupled with occasional flickers of optimism led to one of the most volatile periods ever for stocks. The Dow moved more than 200 points on 18 separate times during the quarter, swinging by more than 400 points on four consecutive days in August alone. When you couple the nauseating stock market performance with anxiety about the European sovereign-debt crisis and headlines forecasting a double-dip recession, it’s no wonder people are running scared.
Now What?

While past performance doesn’t guarantee future results, some investors are taking comfort in the fact that the third-quarter, historically, has been the worst of the year, and the fourth-quarter is typically the best. And while some are finding it difficult to be optimistic, others are turning their sights to corporate earnings for a barometer of where the economy is headed. Companies will start releasing their third-quarter reports in coming weeks.

Interestingly, the third-quarter edition of the Investment Manager Outlook (a survey of investment managers conducted by Russell Investment Group and released 9/29) found that 78% of managers do not expect the U.S. to slide into a double-dip recession. “Strong corporate balance sheets and high corporate profits should ensure that the United States avoids a new recession. However, Russell also believes, along with the majority of the managers surveyed, that we will see a slow-growth trend for the next several years, as well as ongoing market volatility,” the report stated. We agree with this assessment.

As long as confidence in the global economy and government policymakers remains shaky, markets are likely to be volatile. Even so, we still believe that fundamentals are strong in many areas, and we know that successful investing is a long-term project undertaken with risk and uncertainty. Equity markets do not move in a straight line, and neither do economic recoveries. Despite being painful, volatile periods like this historically run their course and then come to an end.
We understand that fear can be contagious, but we urge you not to let yourself be overtaken by it. While many types of investments are currently experiencing a difficult period, we believe that those who remain committed to their long-term investment plan will be rewarded over time.

If you have any questions or would like any guidance, please don’t hesitate to reach out to us. We consider it a great privilege to help you protect what you’ve worked hard to earn.

ECONOMIC CALENDAR: Monday – ISM Mfg Index, Construction Spending
Tuesday – Motor Vehicle Sales, Factory Orders
Wednesday –ADP Employment Report, ISM Non-Mfg Index, EIA Petroleum Status Report
Thursday – BOE Announcement, ECB Announcement, Jobless Claims
Friday – Employment Situation
Data as of 09/30/2011 1-Week 3Q YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 2.11 -14.3 -7.73 1.68 -2.63 1.15
Dow 3.55 -12.1 -3.66 3.39 -0.90 2.61
NASDAQ -0.10 -12.9 -6.49 4.73 1.97 6.55
MSCI EAFE 4.81 -17.8 -13.4 -7.33 -3.26 2.64
10-year Treasury Note (Yield Only) 1.81 N/A N/A 2.52 4.63 4.57

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

According to a Bloomberg Gallup Poll, 63 % of global investors approve of President Barack Obama's plan to tax people with annual incomes of $1 million or more. The so-called Buffett rule is a nod to investor Warren Buffett and his New York Times op-ed piece calling on the wealthy to pay their fair share.

Consumers made less money and spent less money in August, according to a report released Friday. The Commerce Department said personal income declined by 0.1% in August. Consumer spending rose just 0.2%, and was flat when adjusted for inflation.

An examination of credit-rating agencies by the Securities and Exchange Commission staff found repeated instances of the companies failing to follow their own procedures or adequately manage conflicts of interest, according to an S.E.C. staff report issued Friday. The examinations were mandated in the Dodd-Frank regulatory law passed last year after numerous investigations into the causes of the financial crisis. Several of those inquiries found that the rating agencies issued inaccurate reports, failed to report or manage conflicts of interest, and put generating revenue ahead of rigorous financial analysis.

Eurozone inflation has surged unexpectedly to a three-year high of 3%, adding to the dilemma facing the European Central Bank as an escalating debt crisis pushes the region towards recession.

Market sell off has investor’s concerned

After the brisk market rally we experienced two weeks ago, the tables turned dramatically last week as many asset classes experienced their worst week in years. The Dow tumbled 6.4%, the S&P 500 fell 6.5%, and the Nasdaq slid 5.3%. Even gold shed nearly 10% over the course of the week for its biggest drop on a percentage basis in 28 years.

In conjunction with persistent concerns about European debt and a weakening U.S. economy, the presumed trigger for the panic was that the Fed's Open Market Committee (FOMC) launched “Operation Twist” on Wednesday. The move, designed to bring interest rates down and stimulate the housing market, scarcely proved to reassure investors. “Operation Twist” calls for the Fed to sell short-term securities (maturing in three years or less) from its sizeable $1.7 trillion holdings of government debt and use the $400 billion raised to buy longer-term mortgage-backed securities maturing in six to 30 years.

At the same time, the Fed accompanied its announcement with a lukewarm (at best) assessment of the economy. While stating that they continue to expect some pickup in the pace of recovery over coming quarters, they cited “significant downside risks to the economic outlook, including strains in global financial markets.”
While the stock market has undeniably taken a big hit, and investor confidence has been badly shaken, few things fundamentally changed from two weeks ago. In essence, market participants reacted to renewed concerns that policymakers aren’t doing enough to stabilize the global economy.

Notably, the Group of 20 major economies, including the United States, European Union, and China, issued a statement Thursday saying that it stands committed to "take all necessary actions to preserve the stability of banking systems and financial markets as required."

It is likely that we will continue to experience a period of volatility as investors wait to see if the words of policymakers lead to tangible actions.

ECONOMIC CALENDAR: Monday – New Home Sales Tuesday – S&P Case-Shiller HPI, Consumer Confidence Wednesday –Durable Goods Orders, EIA Petroleum Status Report
Thursday – GDP, Jobless Claims, Pending Home Sales Friday – Personal Income and Outlays, Chicago PMI, Consumer

Sentiment
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

Last week, the government released the latest census report showing the poverty rate rose to a 17-year high. A whopping 46.2 million people (or 15.1% of the U.S. population) live in poverty, and 49.9 million live without health insurance.
BP is preparing its rigs and workers to resume full drilling operations in the Gulf of Mexico, seeking to end a 17-month production slump following the worst U.S. oil spill.

The International Monetary Fund annual meetings wrapped up in Washington on Sunday with no immediate consensus on the solution. Participants said they were waiting for the ratification of the action plan agreed on July 21 by the Eurozone, particularly by the German Bundestag this week, before starting serious negotiations on increasing the rescue fund’s firepower or asking for a bigger write-down in private sector holdings of Greek debt.

For the first time in months, retail gasoline prices have fallen below $3 a gallon in places, including parts of Michigan, Missouri, and Texas. And the relief is likely to spread thanks to a sharp decline in crude-oil prices. The national average for regular unleaded gasoline is $3.51 per gallon, down from a high of $3.98 in early May. Last week's plunge in oil prices could push the average to $3.25 per gallon by November, analysts say.

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Introducing Ken’s new book: Can I Retire?

http://caniretirebook.com/

If you would like a Free Copy, please email us your name and address


Excerpts from the book:


“Where you go and what you do after you retire all depends on the individual. Whether its travel, volunteering, spending time with family or friends, there’s no end to what you can do once you’ve retired. As long as you’ve planned and prepared for it as best you can by budgeting, consulting with advisors, investing and comparing plans, then your golden years should be both merry and bright.” – Ken Mahoney

A lot of people make the mistake of embarking on their retirement years without their family’s support, or without thinking it through all the way. That’s the first mistake they make, and one that can cost them a smooth transition into retirement. Don’t be one of the people who make so many mistakes during their first year of retirement and spend several more years just making up their losses, which, with the benefit of hindsight, they could have avoided.

While many books discuss retirement in terms of accumulating wealth, it is equally important to consider how you see yourself in retirement – where you would like to live, what activities you would like to pursue and the associated costs. Once you understand what you want in terms of lifestyle, I think you'll start looking forward to answering the question, “Can I retire?”

Can I retire? Most people today make that decision predicated on their financial situation. But there are other components of retirement I would like you to consider. Most importantly, I would like you to consider having purpose in your life during retirement. The transition of going from working to retirement or from structured to non-structured can be difficult. So it’s important to “transfer” the structure of the “work world” to your own new structure of retirement.


What people are saying about Can I Retire?

This review is from: Can I Retire? (Your Personal Guide To Retirement) (Paperback)
I'm 46 years old and need to be thinking about my "golden years." From what I can see, they aren't always golden for retirees, especially not financially. I want to plan now and yet I wasn't sure where to begin. Can I Retire? (Your Personal Guide To Retirement) was exactly what I needed right now. It helps me get a feel not only for the sum I'll have to live on but also enables me to plan around contingencies such as problems in the future, health situations, and so on. I NEVER would have taken into account all the factors that go into retirement with this book. I do feel kind of smothered by what is in store for me now that I am working out my plan, but I would much rather feel like a "dummy" now than when I'm 65 and have nothing!!! NOW I have time to actually WORK MY PLAN and that's what I'm going to do.

This review is from: Can I Retire? (Your Personal Guide To Retirement) (Paperback)
Just getting by day to day is more of a financial challenge than it's been in several generations but RETIREMENT? Extremely hard especially when we might not be able to rely on social security. We are nearing retirement and have some saved but we certainly have a ways to go before we could ever consider stop working if we want to maintain an okay-to-decent lifestyle. I was thrilled with Can I Retire because the author, Ken Mahoney, obviously knows his stuff and has counseled many people before. His writing is clear and concise and he answers questions people like us - complete novices when it comes to financial stuff like "derivatives" and things like that! - have. For example, what helped us the most is how he guards us against retiring without knowing exactly where we stand before doing so and without having a plan. Too many retirees have found they have to come OUT of retirement to make ends meet and who wants to do that???

This review is from: Can I Retire? (Your Personal Guide To Retirement) (Paperback)
I loved the book. It was filled with smart, practical ideas that anybody can do in preparation for retirement. I recommend the book to anyone young or old, looking for ways to be smart about their money before and after retirment

Ten Years Later

For most of us, 9/11 feels like yesterday. For a younger generation, Sunday’s services etched a memory of that day onto minds too young to recall it. Three-thousand-six-hundred and fifty-two days have since passed, but as New York City Mayor Michael Bloomberg so poignantly stated, “We can never un-see what happened here.” While most Americans wish they never had to witness the events of that defining day, they are equally determined never to forget them.

The 10th anniversary closed a decade that witnessed two wars, massive changes in national security, the Great Recession, and most recently, the death of the elusive terrorist who masterminded the attack. And no longer is ground zero merely a reminder of what was, but a symbol of rebirth. With the breathtaking National September 11 Memorial now open and the yet-to-be-finished Freedom Tower rising 961 feet above the street where 2,983 lost their lives, history remembers the resilience of the human spirit.

The financial world also stands changed by the events of September 11. Once the physical financial center of the country, the area near ground zero has become largely an upscale residential neighborhood. Pre 9/11, tourists could visit the New York Stock Exchange and stand in a galley to watch the trading, but not anymore. Even though the building itself sustained no damage when the Twin Towers fell, the exchange has since been considered a target and the visitor center remains closed. On the floor of the exchange, traders must now go through security barriers and x-ray machines under the watch of armed officers – something those who have flown on a commercial airliner since 9/11 can relate to.

While Sunday marked a day of reflection and tears for many of us, and while both the tragedy and heroism of 9/11 will long be remembered, Americans will move forward this week. Concerns surrounding Europe’s debt crisis will rear their ugly heads again, and headlines about stock market volatility will doubtless be featured in the news. And when they are, we would all do well to keep things in perspective and be thankful for the life we enjoy, even if it has been altered by the events of September 11th, 2001.

HEADLINES:
Moments of silence were observed in New York City Sunday on the 10th anniversary of the terror attacks that destroyed the World Trade Center and killed nearly 3,000 people. "Ten years have passed since a perfect blue sky morning turned into the blackest of nights. Since then, we have lived in sunshine, and in shadow," said New York City Mayor Michael Bloomberg.

China’s record imports and a rebound in lending signaled strength that offers a bright spot in a global economy contending with Europe’s debt crisis and weakening U.S. job gains. Government reports in the past two days showed that shipments from abroad jumped 30% and new local-currency loans were a more-than-forecast 548.5 billion yuan ($86 billion).

The average price for regular gasoline at U.S. filling stations rose 5.76 cents to $3.6669 a gallon last week.

Bank of America Corp. is preparing to slash 40,000 or more jobs and close 10% of its branches nationwide. The details of the plan were not officially announced, but the information was disclosed by three Bank of America executives who have been briefed on the plan but were not authorized to speak publicly.

Unemployment and the stock market explained

The big news last week centered on the August jobs report, which was disappointing to say the least. Non-farm payrolls were unchanged in August but down 58,000 including revisions to June/July. The consensus expected a gain of 68,000. The unemployment rate remained unchanged at 9.1%.

U.S. stocks tumbled 2% on Friday in reaction to the news, as headlines showing zero jobs growth in August fueled investor concerns. And while the August numbers are certainly not attractive, there are a few underlying factors we would like to draw your attention to.

One of the reasons August’s numbers were so weak has to do with the Verizon strike, now over, that temporarily sidelined 46,000 workers. Were it not for that strike, private payrolls would have been up 62,000 including revisions. As it stands, workers on strike are counted as unemployed when they go on strike and are added as newly employed when they go back to work. Now that they have returned to work, a future employment report will show an increase of 46,000. It’s strange how the system works isn’t it?

There was also some positive news in Friday’s report. Civilian employment, an alternative measure of jobs that includes start ups, increased 331,000 in August, which is very encouraging. In general, when new businesses are starting up and hiring workers, it means the wheels of capitalism are turning in the right direction.

If you only look at the totals, it’s easy to say there was no employment growth in August, which is how most of the headlines read. But if you take time to look below the surface, a more balanced picture emerges. Much of August’s weakness can likely be attributed to financial turmoil in Europe, large swings in the stock market, and lawmaking that has brought much uncertainty to the hiring arena.

Although recession fears are still lingering, recent reports on auto sales, manufacturing and consumer spending suggest that the economy is still growing, albeit slowly. We believe future jobs reports will reflect that.

ECONOMIC CALENDAR: Monday – U.S. Holiday: Labor Day Tuesday – ISM Non-Mfg Index Wednesday – Beige Book
Thursday – BOE Announcement, ECB Announcement, International Trade, Jobless Claims, EIA Petroleum Status Report
Data as of 09/02/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 -0.24 -6.65 7.69 -2.09 0.36
Dow -0.39 -2.91 8.92 -0.39 1.30
NASDAQ 0.02 -6.50 12.7 2.62 3.74
MSCI EAFE 0.08 -9.42 2.35 -2.58 2.14
10-year Treasury Note (Yield Only) 2.19 N/A 2.63 4.73 4.82

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:
Bank of America Corp. and 16 other big banks have been hit with multiple accusations of securities-law violations and negligence in a series of lawsuits tied to more than $50 billion in mortgage securities. The lawsuits, filed late Friday by the Federal Housing Finance Agency, accuses lenders of selling bad mortgage securities to government-sponsored housing companies Fannie Mae and Freddie Mac.

The euro came under significant pressure in European trading Tuesday, pulling down other sentiment-sensitive currencies, such as the pound and Australian dollar, with it. A steady flow of negative newsflow out of the euro zone pushed it down about 0.6% – a big move for a major currency – against the dollar.

Though oil prices fell to near $88 a barrel Friday, crude has jumped about 16% since August 9th, bolstered by signs industrial production in the U.S. continues to expand. The Institute for Supply Management said Thursday that U.S. manufacturing grew for the 25th straight month while analysts had expected a contraction.
About 70,000 households and businesses along the Eastern Seaboard who lost power during Irene remain without it a week after the storm.