Pat Webb - Phase 2 Advisors

Leadership Vacuum Weighs On Markets 

Weekly Update August 6, 2012

In This Issue
Golf Tip
Health Tip
Green Fact
The Markets:

Although the week started off slowly, markets experienced a couple of volatile trading sessions on Thursday and Friday with the Dow dropping more than 180 points on Thursday before surging more than 200 points on Friday with the release of some upbeat domestic economic reports. Overall, markets finished flat or slightly up with the S&P picking up 0.36%, the Dow edging just 0.16%, and the Nasdaq gaining 0.33%.[1]


Thursday's downturn in equities was driven largely by Wall Street's realization that European Central Bank emperor Mario Draghi has no clothes. Markets spun in reverse after Draghi failed to announce any measures to back up last week's bold talk about saving the Euro at all costs. As we mentioned in the last update, there simply isn't enough money in the European economy to bail out every periphery country. Until Eurozone leaders are willing to support EU-wide underwriting of bond purchases by the ECB, there isn't much Draghi can do to back up his words.[2]


Domestically, traders reacted very positively to Friday's jobs report, which showed 163,000 new nonfarm jobs in July, beating expectations of 100,000 - meaning we've potentially avoided a double-dip recession so far. However, markets may be showing some irrational exuberance as the report held plenty of bad news as well. The labor force participation rate shrank, and small businesses continued cutting jobs last month; two factors which led to the rise in unemployment. For July, the unemployment rate ticked upward a notch to 8.3% from 8.2%.[3]


A mediocre jobs report combined with a struggling manufacturing sector and slow business revenues means that the U.S. economy still has a long way to go before we can call it healthy. Add in the tax and regulatory threats coming down the pike in the form of Bush tax cut expiration and mandatory spending cuts, and we've got a recipe for trouble in the New Year. We hope Congress enjoys its five-week vacation and comes back refreshed and ready to deal with some serious issues before the November elections.



Monday: Ben Bernanke Speaks 9:00 AM ET

Tuesday: Ben Bernanke Speaks 2:30 PM ET

Wednesday: Productivity and Costs, EIA Petroleum Status Report

Thursday: International Trade, Jobless Claims

Friday: Import and Export Prices, Treasury Budget



08-06-2012 Weekly Update
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.

Retailers report strong sales in July. A combination of hot weather and clearance sales drew in American customers, giving retailers solid sales going into the back-to-school season. Retailers have been aggressive with promotions as the second-largest shopping season kicks off.[4]


Long-term unemployed and discouraged workers numbers fell in July. Despite the increase in unemployment, the number of discouraged workers - those who have given up looking for work - dropped by 267,000 as compared to a year ago. The number of long-term unemployed workers - those out of work for 6 months or more - fell by 3.4% in July.[5]


Consumer confidence rose in July. Despite lingering unemployment, Americans were unexpectedly optimistic about short-term business and employment prospects. Although respondents were concerned about rising prices, they expect to see more jobs in the next six months.[6]


Wal-Mart's stock surge means times are tough for low-income Americans. The retailer's recent stock jump - to a record $74.80 on July 27 - and its strong earnings report could mean that low-income families are feeling the financial squeeze. Wal-Mart is planning to go after these consumers by lowering prices on food and consumables.[7]


Quote of the Week

"Never give up, never give in, and when the upper hand is ours, may we have the ability to handle the win with the dignity that we absorbed the loss."

~ Doug Williams 

Recipe of the Week

Lemony Chicken with Celery and Feta

08-06-2012 Weekly Update

Prepare the chicken and onions up to 12 hours ahead to save time. Recipe from



4 stalks celery, thinly sliced

1/8 cup chopped fresh mint

1/2 to 1 teaspoon crushed red pepper

4 tablespoons olive oil

2 teaspoons grated lemon zest, plus 2 tablespoons fresh lemon juice and 2 lemons, halved

Kosher salt and black pepper

6 boneless, skinless chicken thighs (about 1 3/4 pounds) cut into 1 1/2-inch pieces

1/2 small red onion, cut into 1 1/2-inch pieces

4 pocket less pitas or flat breads, warmed

2 ounces feta, crumbled (1/2 cup)




1. Soak 8 small wooden skewers in water for at least 15 minutes. 

2. In a medium bowl, combine the celery, mint, crushed red pepper, 2 tablespoons of the oil, 1 tablespoon of the lemon juice, and 1/4 teaspoon each salt and black pepper.

3. Heat grill to medium. In a second medium bowl, toss the chicken and onion with the lemon zest, the remaining 2 tablespoons of oil and 1 tablespoon of lemon juice, 1/2 teaspoon salt, and 1/4 teaspoon black pepper.

4. Thread the chicken and onion onto the skewers and grill, uncovered, turning occasionally, until the chicken is cooked through and the onion is tender, 12 to 16 minutes.

5. Grill the lemon halves until charred, 5 to 10 minutes.

6.Top the pitas with the celery mixture, chicken, and Feta. Serve with the lemons.


Golf Tip

Grip it and Rip it 


Most power tips have to do with the physical components of generating speed and power in the golf swing. In this case, the power tip is a mental one.


To hit your longest and straightest drives, you must be mentally geared up to unleash your potential power. You can't go deep if you're filled with fear or anxiety about the outcome of the shot. Some well-known instructors like Jackie Burke Jr. and Jim McLean advocate the idea of being a "little reckless" with the driver. Not that you should truly be "reckless," but it is important not to become overly analytical before and during your swing. Every once in a while, it's okay to trust yourself and let your athletic instincts take over.


Healthy Lifestyle

Check Your Thyroid

Ask your doctor about having your thyroid checked. According to the American Journal of Medicine, a mildly under-active thyroid can boost your heart-disease risk by 65%. A quick blood test can assess your level of thyroid-stimulating hormone (TSH).


Green Living

Green up Grocery Shopping  


If you're looking to make a green impact with the way you shop, use these tips to improve how you shop for groceries.

  • Don't buy individually packaged items. "Convenience" or individual packages of foods such as yogurt, pudding, granola bars, and snack foods may make snacking on the go easier, but they increase waste and resource consumption. Consider buying in bulk and repackaging them at home in reusable containers.
  • Bring grocery bags from home. Instead of using disposable plastic or paper bags, bring your own bags made of cloth, mesh, or other materials to reduce waste. Some grocery stores even offer credits or incentives to people who bring their own bags.
  • Reduce plastic waste by avoiding produce bags. Do you really need to put each item of produce in its own bag? Unless they are wet or covered in dirt, most produce doesn't need a bag; bypass plastic and wait until you get home where you can store food in reusable bags or containers.

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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 assetsThe 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 Pending Home Sales Index, a leading indicator of housing activity,  measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops.  The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.


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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Pat Webb
Pat Webb - Phase 2 Advisors
8100 Turman Ct
Fort Collins, CO 80525