A Hazy View

A Hazy View

Weekly Update - May 28, 2012

In This Issue

Performance

Headlines

Recipe

Golf Tip

Health Tip

Green Fact

The Markets:

Markets started off last week with a bang and managed to hold their gains long enough to snap a three week losing streak. The S&P gained 1.74%, the Dow rose 0.69%, and the Nasdaq notched up 2.11%. Most of the action was driven by bargain-hunting traders striving to snap up deals in advance of potential rallies. Perhaps most impressive about the week's performance is that it came in the face of continued gloom from Europe.[1] The few economic reports released last week were generally lukewarm, with unemployment flat, and home sales slightly up.[2]

Worries about Europe weren't helped by the announcement by a former Greek prime minister announcing that Greece may be considering exiting the Euro. However, European leaders are due to meet next week to discuss plans for promoting growth and preventing the recession that grips half the region from dragging down the global economy. Results of the meeting could mean a larger role for the European Central Bank or the use of controversial Eurobonds (guaranteed by the Eurozone as a whole) to bail out ailing economies.

It'll be difficult to get a clear picture of what the next few months will bring in Europe until Greek elections on June 17 - which will define how the new government will abide (or not) by austerity agreements. As a result, the slew of U.S. economic indicators being released next week will probably feature heavily in trading. If headlines reveal that the economy is still chugging along, it should divert attention away from Europe and provide investors with incentive to jump back into equities. On the other hand, bad economic news could indicate that the Eurozone contagion is spreading and cause further declines. As always, only time will tell the story. On a side note, one silver lining in the Europe situation is the strengthening of the U.S. dollar, which could cause more money to be poured into dollar-denominated assets as investors flee a threatened euro.[3]

With the markets poised to jump whichever way the headlines blow, we strongly believe it is best for long-term investors to stick to their strategy while maintaining enough flexibility to adjust course if the situation calls for it. We pledge to keep monitoring world events as they unfold, and to keep you informed.

ECONOMIC CALENDAR:

Tuesday: S&P Case-Shiller HPI, Consumer Confidence, Dallas Fed Mfg Survey

Wednesday: Pending Home Sales Index

Thursday: ADP Employment Report, GDP, Jobless Claims, Chicago PMI, EIA Petroleum Status Report

Friday: Motor Vehicle Sales, Employment Situation, Personal Income and Outlays, ISM Mfg Index, Construction Spending

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. N/A means not available.

Headlines:

Durable goods orders rose 0.2% in April after a 3.7% decline the previous month. According to the Commerce Department report, gains in commercial aircraft orders and more demand for autos and parts drove the modest increase.[4]

Oil dropped below $90/barrel for the first in time seven months in trading on Wednesday as U.S. supplies continue to grow. Gasoline prices have followed the decline and dropped 26 cents since peaking in late April.[5]

Consumer sentiment rose in May to the highest level in four years. The Thomson Reuters/University of Michigan's report claimed that higher wages and optimism about the job market helped push consumer sentiment to its highest point since October 2007.[6]

Investors sue Facebook over pricing and trades. The commotion surrounding the tech giant's IPO should serve as a warning to investors about chasing the latest fad or hot stock.[7]

"If your actions inspire others to dream more, learn more,
do more and become more, you are a leader".
- John Quincy Adams

Amazing Chicken Marsala

Sage leaves and prosciutto add a luxurious touch to this weeknight dinner.
Recipe from RealSimple.com.

Ingredients:

16 fresh sage leaves

8 large, thin slices prosciutto

8 chicken cutlets

2 tablespoons all-purpose flour

1 1/2 teaspoons freshly ground black pepper

1 tablespoon olive oil

3 tablespoons butter

3/4 cup Marsala wine

2 tablespoons capers in brine, coarsely chopped

2 tablespoons chopped fresh flat-leaf parsley

Directions:

1) Heat oven to 350 degrees F. Place 2 sage leaves in the center of each slice of prosciutto, then wrap each cutlet in the prosciutto.

2) Put the flour and pepper on a plate and dredge the prepared cutlets. Heat the oil and 1 tablespoon of the butter in a large skillet over medium-high heat. Once the butter is foaming, add 4 of the cutlets, seam-side down.

3) Cook the cutlets until golden brown, about 3 minutes per side. Transfer to a baking dish. Repeat with 1 tablespoon of the butter and the remaining cutlets.

4) Transfer the baking dish to the oven and cook the cutlets for 5 minutes. Meanwhile, reduce heat under the skillet to medium-low and add the Marsala. Simmer for 3 minutes, stirring constantly and scraping up browned bits.

5) Add the capers and parsley. Stir in the remaining tablespoon of butter. Spoon the sauce over the chicken and enjoy.

Clip the Tee

Many things can affect your timing (lack of practice, tension, fatigue, poor swing mechanics), but there is a good drill to help you improve it.

The idea is that if you can consistently clip a very low tee (no ball, just the tee) out of the ground with a 6 or 7 iron, you have accomplished a great deal: Your clubface is square; your swing path is straight; and there is enough speed to knock the tee out of the ground.

In addition, there is no ball to clutter your mind with results and expectations of ball flight. This frees you to focus on your setup. If you practice this drill, your timing will improve.

Get Up At the Same Time Each Morning

Getting up at the same hour each morning helps you discover how much sleep your body really needs. By training your body to get up at a set time each day, you will naturally fall into a regular bedtime that corresponds to your body's need for sleep. Some days you'll need more sleep at night, so you will naturally avoid staying up too late. Your level of sleepiness should be the green light that your body needs rest.

Inflate Your Tires

Keeping the right amount of air in your car tires may not save a significant amount of gas, but it really can cut global oil consumption. Studies prove that properly inflated tires can improve mileage by more than 3%. On a worldwide scale, that's a lot of barrels of oil. Plus, properly inflated tires are safer and last longer.

Share the Wealth of Knowledge!

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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.

Diversification does not guarantee profit nor is it guaranteed to protect assets 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 Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

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.

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[1] http://biz.yahoo.com/mu/update.html

[2] http://biz.yahoo.com/mu/update.html

[3] http://www.reuters.com/article/2012/05/26/us-usa-stocks-weekahead-idUSBRE84O15S20120526

[4] http://www.usatoday.com/money/economy/story/2012-05-24/durable-goods/55182704/1

[5] http://www.usatoday.com/money/industries/energy/story/2012-05-23/oil-prices-plunge/55171268/1

[6] http://www.reuters.com/article/2012/05/25/us-usa-economy-idUSBRE84M1G420120525

[7] http://online.wsj.com/article/SB10001424052702304707604577422063685311108.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