Weekly Market Update

Weekly Market Update

Week of March 21, 2011

The Markets:

Between situations in Japan and Libya, stocks faced serious headwinds last week. The Dow declined 1.5%, the S&P 500 fell 1.9% and the Nasdaq dropped 2.7%.[1] The Libyan cease-fire announcement temporarily calmed concerns about developments in the Middle East on Thursday and Friday, but ongoing uncertainty eventually caused the rally to slow and it wasn't enough to recover from Wednesday's thrashing.[2]

Recent events, including the nuclear disaster in Japan, international forces bombing in Libya, and the possibility of more currency market intervention will likely keep investors reacting to headlines in the weeks ahead. We are currently facing an extremely media-driven market that responds quickly to what is visible in the news. At times like this, it is more important than ever to avoid trading based on emotion rather than facts or fundamentals.[3] Even when things are uncertain, there are often many promising opportunities to be found. Consider one example:

Some people see huge opportunities in Japan. Since experts are optimistic that the earthquake's impact will have a relatively mild long-term effect on Japan's economy, a cross-section of investors are watching the Japanese market with the intent to invest - viewing the Nikkei's sharp drop as the best time to get in. In fact, a whopping $956 million flowed into Japanese equities in the week ending March 16 alone, according to data from Thomson Reuters Lipper service.[4] While we are not necessarily advocating this strategy for you, it does highlight the importance of seeking out opportunities even when things look grim.

Despite the complicated and unpredictable elements at play, these events remind us of the nature of the markets: ups and downs are to be expected. Although we've quoted him before, now is a good time to recall the words of billionaire investor Warren Buffet who said, "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful". And always remember, we're monitoring the situation closely.*

ECONOMIC CALENDAR:
Monday - Existing Home Sales
Tuesday - Redbook
Wednesday - New Home Sales, EIA Petroleum Status Report
Thursday - Durable Goods Orders, Jobless Claims
Friday - GDP, Consumer Sentiment

Performance

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. NA means not available.

Headlines:

America's top military commander says a United Nations-authorized no-fly zone over Libya has effectively been achieved. The Chairman of the U.S. Joint Chiefs of Staff, Admiral Mike Mullen, is calling the initial phase of a multi-national effort to take control of Libyan airspace a success. Mullen says Libyan command-and-control centers and air defense installations have been struck, and that leader Moammar Gadhafi's forces effectively are grounded.[5]

The U.S. cost of living hit a record high (127.4) in February, according to the Chained Consumer Price Index. The previous high of 126.9 was reached in July 2008, before economic markers like unemployment and stock prices were affected. Simultaneously, states will be cutting back services this year at the same time they increase taxes in order to close enormous budget deficits.[6]

Japanese government officials say food and milk contaminated with radiation is being detected in a wider than expected area. Some shipments are now being stopped, although authorities stress that ingesting the items will not immediately harm people.[7]

Nissan Motor Co. said Sunday that it will start parts production and vehicle assembly operations this week in Japan, becoming the first car maker to restart its entire auto production process after a devastating quake brought the country's auto industry to a standstill.[8]

"Everyone has inside him a piece of good news"
- Anne Frank

Shrimp in Sherry-Garlic Sauce

From: The Food Channel
The sherry-garlic sauce in this appetizer offers a
delicious change of pace from the usual cocktail sauce.

Servings: This recipe makes 24 servings of 3 shrimp.
Prep: 10 mins

Ingredients:
3 pounds shrimp, 21-25 count, peeled, deveined, tails on
1 tablespoon kosher salt
1/2 cup extra virgin olive oil
1/2 cup garlic, minced
3/4 cup sherry, semi-dry, such as amontillado
1/4 cup parsley, minced
Lemon juice, fresh, to taste

Directions:
1. Spread shrimp on a baking sheet and sprinkle with salt. Let rest for 5 minutes.

2. In a large skillet, heat 1/4 cup olive oil and garlic over medium high heat until the garlic begins to sizzle. Add 1 pound of shrimp and cook, stirring frequently, until the shrimp is opaque. Transfer shrimp to a container.

3. Return skillet to heat. Add another pound of shrimp to the skillet and additional olive oil as needed. Transfer cooked shrimp to container. Cook the final pound of shrimp, leaving it in the skillet when done.

4. Add reserved shrimp to the skillet and lower heat to medium. Add sherry and reduce until sauce slightly thickens. Stir in parsley, lemon juice and salt to taste.

5. Serve immediately.

Can't Cut It?

Having trouble learning to cut the ball? Try opening your stance a bit and weakening your grip. To cut the ball, you need to give the grip - and consequently the clubhead - a slight rotation under the ball at impact. A strong grip impedes wrist motion down and under at impact. A strong grip is, in essence, a pre-rotated grip. You can't very well rotate what's already been rotated.

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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.

The Nikkei is an Index of 225 leading stocks traded on the Tokyo Stock Exchange.

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.

International investing involves special risks not present with U.S. investments due to factors such as increased volatility, currency fluctuation, and differences in auditing and other financial standards. These risks can be accentuated in emerging markets.

*Investing in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards.

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.

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[1] http://www.marketwatch.com/story/us-stocks-up-sharply-on-global-news-2011-03-18

[2] http://www.cnbc.com/id/42155882

[3] http://news.yahoo.com/s/nm/20110320/bs_nm/us_usa_stocks_weekahead

[4] http://money.cnn.com/2011/03/18/markets/Japanese_equity_funds_inflow/index.htm

[5] http://www.voanews.com/english/news/US-Says-International-Forces-Control-Skies-Over-Libya-118327719.html

[6] http://www.cnbc.com/id/42130406

[7] http://www.voanews.com/english/news/Radioactive-Food-Worries-Expand-in-Japan-118328544.html

[8] http://online.wsj.com/article/SB10001424052748704433904576212341267269496.html

Pat Webb
Pat Webb - Phase 2 Advisors
8100 Turman Ct
Fort Collins, CO 80525
970-776-3306
patwebb@phase2adv.com
http://www.phase2adv.com