Now What: A Guide to Retirement During Volatile Times

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


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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.

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

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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