I reflect back to the past and often think, for better or for worse, our society has become increasingly more informal as time goes on.  Many aspects just don’t seem to have that “old school” feel anymore.  And yet that always isn’t always a bad thing.  For example, if you’ve ever been in our office on a Friday you will have seen us all a little more relaxed and dressed down for our Casual Fridays.  We get the same amount of work done, yet get a chance to loosen up.

But personally I feel in various situations, and I’m sure many of my clients would agree, that there are reasons that certain formalities have stood the test of time.  Manners and appropriateness are important concepts we try (and sometimes struggle) to pass down to future generations.  Yet many times we feel like we are fighting a losing battle against scantily clad reality TV stars, racy sitcoms, and fast evolving social technology.  And while we preach that how one dresses and behaves projects who they are to the world, we often go unheard.

Yet every once in a while the “old school” gets an “I told you so” moment.  The link below is an article about the reactions of potential investors to Facebook CEO Mark Zuckerber’s  meeting attire.  The head of the social media giant decided not attend pre IPO meetings in a traditional suit, but opted for his trademark hoodie (hooded sweatshirt).  The hoodie is consistent with the young, cool culture that Facebook projects.  Mark Zuckerberg once showed up to a venture capital meeting in pajamas.  Yet for all his success, not even the world’s youngest billionaire can escape tradition.  Analyst and potential investors found his hoodie to be “immature” and a possible sign that the company may not be ready to have a ticker on Wall Street.  Regardless of Facebook’s fate, I’ll be sure to keep this story in my back pocket for the next time I need to explain to my children why sometimes an “oldie is a goodie.”

http://www.cnn.com/2012/05/09/tech/social-media/zuckerberg-hoodie-wall-street/index.html

**PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

We have all heard about the big Ponzi schemes out there. Madoff and the like, that are responsible for stealing billions of dollars of their victims hard earned money.  To many, these large scale works of deception seem remote and don’t pose a threat.  And while you may feel far removed from these predators and believe they may be easy to spot, remember that Madoff had to start somewhere.  For every one of the large Ponzi scheme we see on the news, there are numerous smaller versions that we never hear about… the mini-madoffs, and they are just as destructive if not more dangerous than their larger counterparts.

The framework of Ponzi schemes are all pretty similar.  They begin with building trust and confidence through friends, family, church, and civic groups.  Anywhere unsuspecting investors would normally have their guards up. The schemers build great stories, backed by convincing charts that promise huge fortunes such as 10% returns.  And in order to build legitimacy, the initial “investor(s)” may get those promised returns.  This continues to build momentum and additional unsuspecting people jump into the scheme.  In time, the house of cards fall and all that’s left is a group of shattered lives in the wake.

The links below will send you to articles about a couple of mini-madoff incidents.  Just remember, while the amount of money stolen may pale in comparison to Bernie, that total still represents lives ruined by these thieves.

We will be hosting a Shredding Part on June 2nd where you can shred all your confidential documents (onsite) safely and will be providing a paper on the Anatomy of Madoff’s Scheme.  Please contact us for more details.

http://www.foxnews.com/us/2012/05/07/con-artist-couple-known-as-mini-madoffs-caught-after-12-years-on-run/?test=latestnews

http://www.cnbc.com/id/47264578

**PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

One year later, but Social Security will be bankrupt 3 years sooner.

The concept of social insurance was written into Article 22 of the Universal Declaration of Human Rights which states that Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

On April 25, 2012, the Social Security Board of Trustees released its annual report on the financial health of the Social Security Trust Fund.  It concluded the trust fund will be exhausted by 2033, three years sooner than it projected last year.

“This year’s Trustees Report contains troubling, but not unexpected, projections about Social Security’s finances. It once again emphasizes that Congress needs to act to ensure the long-term solvency of this important program, and needs to act within four years to avoid automatic cuts to people receiving disability benefits,” said Michael J. Astrue, Commissioner of Social Security.

The report cites Social Security and Medicare being the two largest federal programs and accounts for 36% of all federal expenditures in fiscal year 2011.  Further, “both programs will continue to experience cost growth substantially in excess of GDP growth in the coming decades due to aging of the population…Through the mid-2030s, population aging caused by the large baby-boom generation entering retirement and lower-birth-rate generations entering employment will be the largest single factor causing cost to grow more rapidly than GDP.”

If you are retired and already collecting Social Security, do you believe this impending doom will not affect you?  Neither I nor anyone else has a crystal ball.  But if your future is banking on Social Security staying “business as usual” and change does come around, what’s your Plan B?

http://www.ssa.gov/oact/TRSUM/index.html

Many studies (Georgia State, Fidelity) predict the average baby boomer will fall short on their retirement income needs, upwards of 44%.  There are many contributors as to why but a major theme revolves around the lack of multiple guaranteed lifetime income resources, i.e. longevity risk.  Most retirees will receive Social Security, some will receive a pension (how many of those will be a lifetime?).  But aside from those two benefits, most other income is variable.  I believe it’s extremely important to access one’s situation and determine whether structuring future guaranteed income streams make sense.  This fits hand and glove with retirement distribution planning, of which I feel many may not be doing enough.

It never ceases to amaze me how quickly time passes by.  A quick wink and Christmas is here, another nod and Tax season is over (thank goodness).  From the small happenings (like I can’t believe American Idol has already been around for 11 seasons), to the big milestones like my son’s upcoming 21^st birthday- there is nothing like time to put things in perspective.

On May 2, 2011 our US troops and CIA operatives shot and killed Osama bin Laden in Pakistan.  Following that event, many Americans have been enamored with Seal Team 6 as well as our armed forces.  And it’s for good reason.  Our fighting men and women sacrifice much so we can have our way of life, and we should never forget that.  I can tell you I have not felt this patriotic since I was in the Army.  And it’s not just the ones holding the guns, but the men and women that protect our way of life every day.  So much goes on behind the scenes as we go about our business, never knowing all the dangers that threaten this great nation.  I believe that it’s important to observe the first anniversary of bin Laden’s death and recognize how our lives have changed forever.  Gone are the days of laxed airport security and ease of travel.  We must remember that while bin Laden is gone, there are many waiting in the wings to replace him.  And while the days blur past us and a year has zoomed by, to put it in perspective, let’s stop and think about all the unknown threats that face our country, and be grateful for the people who protect our way of life.

Spring is in full bloom and it is once again time to honor all of those hard working, wonderful mothers out there!  I’ve always felt that Mother’s Day is a great idea and fun opportunity to show appreciation for those who take on the toughest job out there.  Yet, like Valentine’s Day, this noble concept is tainted with social/commercial pressures that can make this special day feel awkward and obligatory.  Jewelry commercials, overpriced flowers, and fancy dining reservations can bring on unnecessary frustration and anxiety.  I say, “keep it simple,” I have you covered!  It so happens that eating is just as much of a hobby of mine as it is a necessity.  So for you husbands and children out there sweating to find good eats, or mothers looking for the perfect place to hint… Here’s a little guide to some amazing places around town that will make mom feel special, tickle the taste buds, and won’t break the bank!

Part 1: http://www.gq.com/sports/guides/201204/athletes-millionaires-bankrupt-spending#ixzz1quK2cmFh

Part2: http://www.gq.com/sports/guides/201204/athletes-millionaires-bankrupt-spending-money

* http://www.forbes.com/sites/jamesmarshallcrotty/2012/02/21/allen-iverson-earned-over-200-million-in-his-nba-career-hes-now-broke-say-what/

**PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

Bair argues that with the economy starting to recover, the Fed should declare victory and allow the market to determine interest rate levels. Higher rates would compel politicians to work together to address the longer-term economic issues (e.g., budget deficits, an antiquated tax code, entitlements and defense spending).

Financial Outlook Dims for Social Security

This article from The New York Times alerts us to the fact that the “financial health of the Social Security system deteriorated in the last year,” even though Medicare prospects remain unchanged. At the heart of the matter is how long trust funds for these programs will last, with Social Security funds projected to be exhausted in 2033, three years earlier than previously anticipated.

Medicare, on the other hand, is expected to be funded until at least 2024, an estimate unchanged from previous projections. What does this all mean? According to a report from the trustees for these two programs: “the two entitlement programs are unsustainable without structural changes that have so far eluded Congress and the administration.”

Home Prices in U.S. Cities Fell at Slower Pace in February

Home prices fell in February at their slowest pace on a year-over-year basis since February 2011 and increased on a month-over-month basis for the first time since April 2011. Home prices have been declining on a year-over-year basis for six straight months, but the pace of decline has been slowing, potentially leading to stabilization in prices.

Phoenix and Miami, two of the hardest hit real estate markets during the financial crisis, saw an increase in home prices on a year-over-year basis. The continuation of an improving labor market is key to the stabilization of the housing market.

Why You Should Care about the French Election

In this article from The Washington Post, Brad Plumer answers his headline’s question in the first sentence: “The eurozone is lurching from crisis to crisis, and France, the continent’s second-largest economy, will need to play a crucial role in fixing things.” Plumer gets into more detail in a Q&A with Arthur Goldhammer, a long-time blogger on French politics and currently chair of the seminar for visiting scholars at Harvard’s Center for European Studies.

Since this article was penned, Socialist Francois Hollande won the first round of the election against current President Nicolas Sarkozy on Sunday, April 22, making the election even more interesting.

Throwing Good Money after Bad

In this piece, MarketWatch’s Chief Economist Irwin Kellner paints a dark picture for the Euro currency.  He argues the currency will fail in a short time period unless three basic flaws are fixed. First, there must be more focus on stimulating growth, and less on austerity. Second, Germany and other healthier countries have to be willing to bail out their southern neighbors.

Finally, and perhaps the most unlikely to happen, there must be a common economic policy run by a central authority. Kellner argues that one currency for a number of politically independent nations is a recipe for failure. Unless these three things change, the Euro’s lifespan may be very short lived.

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

All third-party excerpts/comments are the responsibility of their respective authors, creators, and/or owners. First Allied is not responsible for third-party materials, and the information reflects the opinion of its authors, creators, and/or owners at the time of its issuance, which opinions and information are subject to change at any time without notice and without obligation of notification. These materials were obtained from sources believed to be reliable and presented in good faith, nevertheless, First Allied has not independently verified the information contained therein, and does not guarantee its accuracy or completeness. This information should not be considered as a solicitation for the purchase or sale of any security.

Articles chosen and summarized by the First Allied Asset Management, Inc. investment management team.

Mark Hulbert is well known for his work using the opinions of newsletter writers as contrarian indicators when their published opinions become abnormally one-sided. This article published on Marketwatch.com summarizes his current work that indicates an unusual level of bearish sentiment among gold traders.

As sentiment toward gold has generally been alarmingly bullish over the past several years, the current bearish sentiment is one data point supporting the recent weakness in gold may be nearing an end. Says Hulbert: “So the average gold timer is more discouraged and dejected today than he has been in three years, even though gold’s current price is nearly double what it was in March 2009.”

Food Prices Push Rate of Inflation Up in China

According to The New York Times, “Consumer prices in the giant Chinese economy rose 3.6 percent in March, compared with the rate of a year earlier, driven by a spike in the volatile prices for food.” Inflation is a particularly sensitive topic in China, where millions struggle to make ends meet and where food makes up a large chunk of household spending.

Will rising inflation spur Beijing to curtail measures aimed to propel growth? GDP data will be released this week and may provide further clues as to the direction of Chinese central bank policy.

How to Invest in a U.S. Manufacturing Boom

Jack Hough of SmartMoney argues the “renaissance of American manufacturing is just getting started.”  Manufacturing in the U.S. has expanded for 32 consecutive months and contributed 31 percent of the 120,000 jobs gained in March.

Improving cost advantages, most notably from rising labor costs in emerging markets, a weak U.S. dollar providing competitively priced goods, and lower energy costs in the U.S., are all cited as reasons for the strength of U.S. manufacturing.

Obama Team Slams Romney for Not Paying “Fair Share” of Taxes

Today, President Obama will make a speech pushing for the Buffett Rule, which seeks to raise the tax rate on people making over $1 million a year. President Obama’s campaign called out his likely opponent in November, Mitt Romney, for not paying his “fair share” of taxes.

While the Buffett rule may not make it past the Republican controlled House of Representatives, President Obama has started to draw the battle lines on an issue likely to receive much more attention as the election nears.

Spanish Notes Lead Slump as German Yields Fall to Records

We’ve been watching Europe again closely and concerns are rising regarding Spain’s outlook, which could be the Greece of 2012. Spain’s five-year note yield jumped 31 basis points, or 0.31 percentage point, to 4.93 percent, which is the highest since January 9.

“We have a renewed concern in the euro region as the debt problem hasn’t gone away despite the liquidity support from the European Central Bank,” said Vincent Chaigneau, the global head of interest-rate strategy at Societe Generale SA in Paris. “The poor non-farm payroll data out of the U.S. only exacerbated the risk-off sentiment. Peripheral bond yields are likely to continue to rise in the near term.”

International investing involves special risks including country, currency, and geo-political risk, as well as, increased volatility of foreign securities and differences in accounting practices.

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

All third-party excerpts/comments are the responsibility of their respective authors, creators, and/or owners. First Allied is not responsible for third-party materials, and the information reflects the opinion of its authors, creators, and/or owners at the time of its issuance, which opinions and information are subject to change at any time without notice and without obligation of notification. These materials were obtained from sources believed to be reliable and presented in good faith, nevertheless, First Allied has not independently verified the information contained therein, and does not guarantee its accuracy or completeness. This information should not be considered as a solicitation for the purchase or sale of any security.

Articles chosen and summarized by the First Allied Asset Management, Inc. investment management team.

It’s no secret that the US budget is bursting at the seams and tough decisions must be made to reign in spiraling expenditures, but is taxing the rich the solution.  At first blush, it’s easy to say, tax the Buffets of the world.  Heck, if it weren’t for the common citizen the Buffets of the world wouldn’t have the opportunity to make their wealth.  Interesting point…how do the Buffets of the world make money?  Sure, some of it is through speculation but many build mega businesses that employ hundreds if not thousands.  Do we think for a second that many of these rich citizens don’t have options for their wealth?

So why is President Obama (as well as other Democrats) going down this path to tax the rich?  I don’t know but it could be because they’re an easy target, or will potentially generate larger tax revenues, and are a smaller voting group, etc, but what will be the consequences.  According to the CNNMoney article below, taxing the rich may not garner the desired results and in the meantime create a platform for higher taxes – not just the rich but everyone.  Additional information on President Obama’s tax proposal can be found on the Tax Policy Center’s website (there’s provisions that will affect YOU!)

Read More: http://money.cnn.com/2012/04/09/pf/taxes/buffett-rule/index.htm?iid=Lead

http://www.taxpolicycenter.org/taxtopics/2013-Budget.cfm

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA.

In recent commentaries, we have discussed the growing evidence of stabilization in the housing market driven by lower inventory levels and an uptick in building permits. This article from Bloomberg discusses a potential headwind facing the burgeoning housing recovery as a large supply of distressed homes finally come to market after a prolonged probe into foreclosure practices was resolved in February.

One conceivable consequence of the potential surge in foreclosure filings is a renewed drop in national home price indices such as the S&P/Case-Shiller Home Price Indices, which could disrupt the recent improvements in consumer confidence. “A surge of cheap foreclosures may erode prices in the broader real estate market, even as the economy expands and residential building increases,” said Karl Case, one of the creators of the S&P/Case-Shiller home-price index.

Biggest Bond Traders See Worst Over for Treasuries

Long-term bonds (those maturing in 10 or more years) tumbled 5.56 percent last quarter, the most since the 8 percent loss posted in the fourth quarter of 2010. However, a Bloomberg News survey of the 21 primary dealers that trade with the Federal Reserve shows that Wall Street feels that the bond market may be poised to recover as economic headwinds lay ahead in the second half of the year.

With U.S. Federal Reserve Chairman Ben Bernanke stating that “the economic recovery isn’t yet assured and unemployment remains too high,” 15 of the 21 surveyed firms say the odds are that the Fed will need a third round of bond purchases, or quantitative easing, to bolster the economy.

The Calm before the EU Storm

Last week’s €200 billion increase of the eurozone bailout fund was a reminder to investors that fundamental problems still persist in Europe. The first quarter saw a mammoth capital injection into eurozone banks and a Greek debt restructuring, which temporarily quelled investor’s fears. The Chinese and U.S. governments are concerned over the slow pace of Europe maneuvering out of their fiscal issues, preferring large scale and swift action by the European Central Bank. The measures taken in the first quarter were only temporary fixes, as the underlying fiscal difficulties are still uncontained and will continue to be a challenge for the foreseeable future.

Asian Stocks Rise on China Manufacturing

The outlook for China is a critical consideration for the economic outlook for the remainder of the year. The bullish case for China was helped this week with China’s March Purchasing Manager’s Index (PMI) rising to 53.1, its fifth consecutive monthly increase. “The PMI data shows China’s domestic demand is relatively strong,” said Sean Yokota, a Singapore-based currency strategist at UBS AG. “That’s positive because if China’s domestic demand is strong, Asia’s exports to China will be slightly better.” A strong domestic demand helps China maintain economic growth in light of weak exports and its cooling housing market.

International investing involves special risks including country, currency, and geo-political risk, as well as, increased volatility of foreign securities and differences in accounting practices.

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

All third-party excerpts/comments are the responsibility of their respective authors, creators, and/or owners. First Allied is not responsible for third-party materials, and the information reflects the opinion of its authors, creators, and/or owners at the time of its issuance, which opinions and information are subject to change at any time without notice and without obligation of notification. These materials were obtained from sources believed to be reliable and presented in good faith, nevertheless, First Allied has not independently verified the information contained therein, and does not guarantee its accuracy or completeness. This information should not be considered as a solicitation for the purchase or sale of any security.

Articles chosen and summarized by the First Allied Asset Management, Inc. investment management team.