Volatility May Create Opportunity

The 84th Academy Awards nominations are to be announced in late January and many movie studios are now releasing their candidates for consideration. While there are many worthy contenders to win the Oscar for best picture of 2011, it is hard for any of them to match the action, intrigue, fireworks and scope of this year’s drama in Europe that has played out on small screens across the world. The swings in the plot have been matched by swings in the markets making for a challenging environment for investors.

European policymakers agreed on a script in late October that avoided a financial crisis, but Italian and Spanish bond yields continued to rise in November threatening to undermine the efforts to close budget gaps. The European Central Bank has been buying Italian and Spanish government bonds in an effort to stem the rise in yields. However, the recently elected governments in Italy and Spain must now follow through on mandates to adopt more stringent austerity measures to reduce their nations’ budget deficits in order to reverse the rise in yields and return to fiscal sustainability.

Investors were already fragile from the European debt concerns when their attention changed scenes to Washington in November and sentiment slumped further following the Super Committee’s failure to agree on budget deficit reduction measures which would avoid automatic cuts starting in 2013. The market’s skepticism over the ability of lawmakers to address U.S. fiscal imbalances means that inaction is likely already priced into valuations and any progress could provide a catalyst for a stock market rally. However, Congress must act soon to extend the payroll tax cut and unemployment benefits scheduled to expire at the end of 2011. The incentive to keep these stimulus measures intact ought to be strong, as they put money directly into consumers’ pockets which helps boost the U.S. economy.

Though the main stage is taken by European and U.S. government actions, behind the scenes, the U.S. economy has posted solid results most recently reflected in a blockbuster Thanksgiving weekend for retailers. Also, companies continue to generate positive earnings results. Nearly every S&P 500 company has reported third-quarter earnings results with 70% beating estimates—reflecting strong 18% earnings growth from a year ago. Importantly, the impressive results are not just a function of cost-cutting, as 60% of companies have also outpaced sales projections. This strong earnings growth coupled with declining stock market levels has resulted in valuations well below their historical average.

As life continues to imitate art, the drama and market volatility may continue. The European debt problems are likely to remain front and center and additional steps need to be taken. U.S. lawmakers must prove they can work together and act decisively by extending the payroll tax cut and expanding unemployment benefits. And, as business leaders feel greater assurance that the economic recovery is on firm footing, they must invest their record profits and stockpiles of cash in capital expenditures to grow their business and hire workers.

A positive fundamental backdrop and compelling valuations set the stage for investment opportunities. However, policymakers need to restore investor confidence. While it will take years to resolve the debt problems in Europe, as with the lingering subprime mortgage debt and housing problems in the United States, merely stabilizing the problem can allow markets and the economy to heal from the damage. The tagline for investors is: volatility may create opportunity. As always, if you have questions, I encourage you to contact me.

Sincerely,

Mark C. Gosselin
Branch Manager
Investment Consultant
11200 Broadway
Suite 2743
Pearland, TX 77584
281 772 4416

http://www.markgosselin.com/

LPL Financial, Member FINRA/SIPC

　

Important Disclosure

The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Past performance is no guarantee of future results.

This research material has been prepared by LPL Financial.

Tracking # 1-026938 | Exp. 11/12 The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

European Rescue Package

The European summit on October 26, the fourteenth in 21 months, finally produced a deal in a late-night negotiating session. European leaders announced a deal that was close to what had been carefully leaked over the prior weeks of deliberations and had helped the S&P 500 Index to rally off of the lows of the year. From the closing low on October 3, the Index has climbed nearly 17% in just three and a half weeks and is on pace for the largest monthly gain since 1987.

Overall, the statement confirms the view that the risk of a 2008-like financial crisis erupting in Europe, which has been the focus of global markets in recent months, has been taken off the table. However, over the long term, concerns remain about the outlook for economic growth in Europe and the ability of some peripheral countries to meet budget targets. While the statement does not clarify all the details, it does lay out the three most important aspects of the rescue package:

•  Reducing Greece’s debt. The package cuts Greece’s debt burden with a 50% “haircut” on Greek bonds. Private investors, including banks, will swap their Greek bonds for those with half the face value, but higher quality given an additional 30 billion euro cushion provided against further losses. 

• A bigger buffer against bank losses. Overall, European banks will be required to raise 106 billion euros to temporarily maintain a higher buffer against additional losses on their bond holdings. Banks will be given the opportunity to raise this capital on their own and plug any gaps with funding from their own government and the ability to tap the European Financial Stability Facility (EFSF) as a last resort. 

• Insurance against loss on European government bonds. The EFSF will provide guarantees against the first 20-25% of losses on about one trillion euros of European government debt. 

The concerns may be shifting from a crisis to a recession in Europe, as it is likely that Europe will experience a mild recession next year. However, European growth could be even weaker in light of the spending austerity and potential for less lending by the banks. The next step in a successful plan to stabilize Europe is for the European Central Bank to cut interest rates soon and reverse the two rate hikes they made earlier this year to promote growth and lending.

While the devil of the European plan remains in the details, the deal could shift investor focus to U.S. markets where economic growth and corporate profits continue to chug along. Third-quarter economic growth, as measured by gross domestic product (GDP), was recently reported at 2.5%, nearly double the pace of growth witnessed in the first two quarters of the year combined. Within the S&P 500, 75% of the companies that have reported third-quarter earnings thus far have exceeded expectations and the companies, in aggregate, are tracking to 15% year-over-year earnings growth, surpassing the 12-13% growth rate that was forecast. Given the current backdrop, we adhere to our forecast of a moderate upside from current levels for the S&P 500 Index in 2011, though we expect the market to remain volatile between now and year-end. As always, I encourage you to contact me with any questions.

Best regards,

Mark C. Gosselin
Branch Manager
Investment Consultant
11200 Broadway
Suite 2743
Pearland, TX 77584
281 772 4416

www.markgosselin.com

LPL Financial, Member FINRA/SIPC


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.


The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.


The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.


International and emerging markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.


This research material has been prepared by LPL Financial. 


Tracking #1-018841 | (Exp.10/12)

Providing Perspective on the Markets and Economy

Continued concern over the debt burden of the developed world combined with the deeply divided political landscape in Washington, D.C. has many investors questioning the sustainability of the economic recovery following the Great Recession of 2008. Growth has slowed and we believe the chance of revisiting a recession has increased to approximately 35%. However, the most likely scenario remains that global growth will continue at its modest pace, which could offer an upside surprise for an increasingly bearish-biased market.

While these volatile markets are sending many investors scrambling for a rock to hide under to wait out the uncertainty, I believe turning over those rocks in search of investment opportunities may prove fruitful over the long term. Fear and emotion oftentimes defines short-term market reactions. However, when fear is at its pinnacle, a patient temperament, faith in your investment plan, and a commitment to opportunistic investments can ultimately turn short-term market challenges into long-term investment success.

One does not have to go far into the history books to find two periods where short-term fear transitioned into investment triumphs. Today’s investment environment is causing investors to face similar challenges to those that haunted them in 2008 and again during the summer of 2010. In both of those periods, prices had declined further than their fundamental values and proactive policy action by central banks served as the catalyst to lure opportunistic investors back into the market. I believe that the same environment exists today and the same elixir is needed for these uncertain times.

The crowded trade certainly remains bearish, but policy actions to stoke the economic growth fire have begun again in earnest. The Federal Reserve Bank announced today that they will provide additional stimulative monetary policy through Operation Twist. Moreover, many central banks around the world that had been intentionally slowing their country’s growth in an attempt to head off inflation are now switching from the brake to the gas pedal to provide more stimulus to jump start growth and the stalling global economic recovery.

The market appears to be suffering much more from a lack of clarity and a wave of uncertainty than it is a degradation in economic fundamentals. While growth has undoubtedly slowed, most corporations are still on pace to post near-record third quarter profits, business spending continues to be strong, and retail sales remain positive. In fact, buoyed by surging auto production and sales following the disruption caused by Japan’s springtime natural disaster, economic growth this quarter for the United States may be poised to not only be the fastest of the year, but also to be faster than the first two quarters of the year combined.

Despite this modest and far from disastrous outlook, uncertainty has outweighed optimism and question marks have outpaced clarity. The market is essentially suffering from a recession of confidence. With the mood decidedly bearish, the market does not believe in this recovery and investors do not have faith that policy makers can avert the second recession in three years. But, it is fear and emotional disbelief that often serves as the catalysts to lower expectations—and stock prices—to levels that even market bears see the value of owning. While the market still faces a challenging environment and has a wall of worry to overcome, I believe that patience and a vigorous commitment to your investment plan is the best strategy to weather this bout of uncertainty and serve as yet another example of the resiliency of the markets, the global economy, and American business.

Sincerely,  


Mark C. Gosselin
Branch Manager
Investment Consultant
11200 Broadway
Suite 2743
Pearland, TX 77584
281-772-4416 


http://www.markgosselin.com/



LPL Financial, Member FINRA/SIPC

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing.All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

The Federal Open Market Committee action known as "Operation Twist" began in 1961. The intent was to flatten the yield curve in order to promote capital inflows and strengthen the dollar. The Fed utilized open market operations to shorten the maturity of public debt in the open market. The action has subsequently been reexamined in isolation and found to have been more effective than originally thought. As a result of this reappraisal, similar action has been suggested as an alternative to quantitative easing by central banks.

This research material has been prepared by LPL Financial.

Tracking #1-008605 | (Exp.09/12)

U.S. Debt Rating Downgraded

After the market close on Friday, Standard and Poor’s (S&P)—one of the three major U.S. rating agencies—downgraded the U.S. government debt from AAA to AA+. This is actually a drop of less than one level within the S&P rating system. According to S&P, an obligor rated AAA has "extremely strong capacity to meet its financial commitments" while one of AA has "very strong capacity to meet its financial commitments" and differs from AAA obligors "only to a small degree." Therefore, U.S. debt is still rated very strong. In addition, the two other major U.S. rating agencies, Moody’s and Fitch, have maintained their highest ratings for U.S. federal debt. S&P kept the short-term rating of the United States at the top rating of A1+. Short-term money market instruments are rated on a different scale, but the status quo with respect to these ratings implies no impact to money market funds.

Since the first U.S. rating agency was established in the early 1900s, the U.S. government has not been downgraded. Frankly, a downgrade just sounds and feels bad. The word "downgrade" has similar negative connotations to words like "demotion" or "decline." However, while this is the first time that the United States has been downgraded by a U.S. rating agency, it is not the first time that the United States has been downgraded. The United States was downgraded one level by China’s Dagong Global Credit Rating Company to A+ in November 2010 and by Germany’s Feri Rating Agency to AA in June 2011.

There is also much precedent for other AAA-rated sovereign nations seeing their debt downgraded. Japan lost its AAA rating in 1998 and Canada was downgraded in 1994—however, both successfully regained their AAA status at later dates. Japan lost its AAA status again in 2009. Though this downgrade feels unique and unprecedented, it has already happened relatively recently to the United States without much attention and to other sovereign nations in the past.

As investors, we need to take this downgrade as what it is—a change in status that does not meaningfully diminish the term "full faith and credit of the U.S. government." In fact, the debt of the United States continues to be viewed as preeminently high quality. One measure of this is to examine the credit default swap market, which is similar to insurance that institutional investors can buy to protect their bonds in case of default. Even after the downgrade by S&P, the cost to "insure" against the default of the U.S. government is much lower than nearly every country in the world, including many AAA credits like Germany, France, and the United Kingdom. Therefore, even though U.S. debt does not still carry a full AAA rating, the market still views the U.S. government’s ability to meet its debt obligations as AAA worthy.

So, what does this all mean to the markets? S&P telegraphed their downgrade starting a couple of weeks ago while the debt ceiling debate was still ongoing. As a result, I believe that the markets have largely priced this downgrade news in. In addition, we have likely not seen the last of downgrades. Now that the United States has been downgraded, S&P will separately be reviewing government agencies and companies that rely heavily on U.S. government support—such as Fannie Mae, Ginnie Mae, and Freddie Mac—for potential changes in credit rating. That said, further downward price moves in the stock market are likely not attributable to the downgrade of U.S. debt, but rather escalating concerns around the European crisis and decelerating global economic growth. In a sense, the downgrade of U.S. debt is not nearly as important to the market as is the potential downshift in the strength of the global economic recovery.

While we have to acknowledge that the risks for a double-dip recession have been creeping up as of late, I continue to believe that it is extremely unlikely. The market appears to be pricing in a far greater likelihood for a return to recession than the data actually indicates. As a result, stock valuations are cheap versus historical averages. The S&P 500 Index trailing price-to-earnings (P/E) ratio, a measure of how much the market values a dollar’s worth of corporate earnings, is at 13 (the lowest since 1990) and the forward P/E ratio is 11 (same as March 2009 low).Essentially, the market is as cheap, or even cheaper, now than it was during the depths of the 2008-2009 recession.

The visceral, emotional reactions to this downgrade are normal, but I believe that the S&P rating downgrade is more disappointing than it is material for capital markets. While the market may react emotionally to the news over the short run, rational analysis will soon reveal that continued favorable economic fundamentals and attractive valuations point to potentially promising investment opportunities just around the corner. I believe that maintaining a cautious stance remains prudent, but systematic additions to risk at these levels will prove a wise investment as the year unfolds. As always, if you have questions, I encourage you to contact me.　

Best regards, Mark C. Gosselin

Mark C. Gosselin
Branch Manager
Investment Consultant
11200 Broadway
Suite 2743
Pearland, TX 77584
832 895 6627 office

www.markgosselin.com

LPL Financial, Member FINRA/SIPC

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and cannot be invested into directly.

The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

An obligation rated 'AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

The P/E ratio (price-to-earnings ratio) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower P/E ratio.

Credit rating is an assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities.

Stock investing may involve risk including loss of principal.

This research material has been prepared by LPL Financial.

Tracking #786254 | (Exp.08/12)

　
　

Debt Ceiling Raised

The hard fought debate in Washington has come to an end. A two-step deal to lift the debt ceiling by $2.1 trillion and cut about $2.4 trillion in spending over a decade has been signed into law. The increase to the debt ceiling has lifted some of the uncertainty that has weighed on investors, businesses, and consumers, who were unsettled by talk about a possible new and deep financial crisis.

Still, the deal does not go far enough to put the United States on a path of fiscal sustainability, with deficits projected to continue to rise, nor does it decisively remove the threat of a downgrade to the nation's AAA credit rating. The size of the spending cuts will have minimal impact on the economy in the near term as they will be phased in slowly with little effect until 2013, after the next election.

While investors may be relieved by the agreement to raise the debt ceiling and avoid default, the market is likely to continue to be held captive by Washington for the rest of 2011. The budget agreement that averted a government shutdown earlier this year, and provided a preview of the current battle in Washington, only funded the government for the 2011 fiscal year which ends September 30, 2011. While the current deal making in Washington may alleviate the problem of “running out of debt capacity”, the government will soon “run out of money” if another deal is not reached by the end of next month to avoid a shutdown. And, this will be exacerbated by the vote by Congress over the $1.5 trillion second round of spending cuts and boost to the debt ceiling, which is set for December 23. These two events combined will mean another market-volatility inducing budget and debt battle is on tap for early this fall.

While raising the debt ceiling was an important hurdle to clear, the latest battle over the national debt reflects only a small portion of the nation's total liabilities. The biggest budgetary expenses are Medicare, Medicaid, and Social Security, which account for nearly half of all spending and seven times what is spent on servicing the nation’s debt. Until these items are addressed through politically polarizing entitlement cuts and/or revenue increases, the nation is still not on a path to fiscal sustainability, resulting in the markets having to deal with continued fiscal fights for the foreseeable future.

In the near term, investors may refocus their attention on the economy. While economic growth may remain below average and data may be volatile, any signs of improvement could inspire investors to re-engage the markets and reduce defensive positions now that the debt ceiling concerns are lifting. One outcome is clear, volatility is here to stay. As always, if you have questions, I encourage you to contact me.

Sincerely, Mark C. Gosselin 
 

Mark C. Gosselin
Branch Manager
Investment Consultant
11200 Broadway
Suite 2743
Pearland, TX 77584
832 895 6627 office
http://www.markgosselin.com 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and cannot be invested into directly.
The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

An obligation rated 'AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

Credit rating is an assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities.

This research material has been prepared by LPL Financial.

Tracking #750682 | (Exp.08/12)

Raising the Debt Limit

The clock continues to tick towards the August 2, 2011 deadline when the United States debt ceiling limit will be reached. This limit is a key element of U.S. Government financial management. The U.S. Government is expected to receive about $175 billion in tax revenues for the month of August, but has $310 billion in monthly obligations that it needs to meet. As a result, the $135 billion in monthly shortfall is usually borrowed via the issuance of U.S. Treasury bonds. However, once the debt ceiling is met, the U.S. Government will not be able to issue new debt and will therefore, have to make significant decisions as it relates to what $135 billion or 44% of its "bills" it will delay payment on. That is, of course, if the debt ceiling limit is not raised by Congress and signed into law by the President.　

While the rhetoric coming out of Washington has certainly transitioned from compromise to contention, it should not be overlooked that the divided parties are aligned on a few very important criteria that should bring a resolution closer to happening—namely that spending cuts should be enacted and that a more responsible government spending policy should be put in place to get a handle on the nation’s soaring national debt. In addition, both sides seem to now understand that the polarizing political view of revenue increases (the Democrats’ wish) and significant entitlement reform (the Republicans’ wish) are too significant a gap to overcome over the short term and are now virtually off the table.

Now, the only (and it is a big "only") things that the two sides have to work out are: where the cuts in spending should come from, how long they will take to implement, and how much money they will save. The reality is that the two divided sides are not as far apart on the terms of a deal as they are from an ideological and political posturing perspective. Said another way: the two sides sound and act a lot further apart than their competing plans actually are.

We expect that the debate in Washington will continue over the next few days as the game of political ideological "chicken" plays out. However, our base case is that a compromise will be forged over the coming days and will result in either a short-term extension of the debt limit or, more likely, an agreement to raise the borrowing capacity of the United States Government until well into next year.

More importantly, even if a bill is not agreed upon and signed into law to raise the debt ceiling by August 2, we do not foresee the United States Government defaulting on its obligations. A default will occur if the government failed to pay the interest due on its debt. For the month of August, the interest due on Treasury bonds accounts for only $29 billion, which is easily met by the $175 billion in tax revenues that are expected. However, while a default would be avoided, the significant impact of dialing back $135 billion that could not be borrowed for other Federal services and obligations would have serious economic impacts.

While the debt ceiling debate has grabbed the headlines and is currently the most significant risk to the market, the underlying strength of the global economy remains solid. Moreover, several of the open-ended issues that have lingered for months are finally getting substantively addressed, including a plan for a second bailout of Greece, a stabilizing European debt crisis, and the re-emergence of Japan’s economic infrastructure from its terrible natural disaster in early spring. In addition, company earnings continue to be very strong as corporate America continues to benefit from a resurgent business reinvestment climate and a resilient consumer.

　

In the meantime, the current conditions support a cautious stance as the market is singularly focused on Washington. We expect that a resolution on extending the debt ceiling will ultimately be agreed upon, but not until the deeply divided government drags the nation and the market even further through the mud. But, on the other end of this self-imposed crisis stands an economic climate where businesses are earning near record profits, employment is improving, housing has stabilized, and consumers are once again revisiting the malls to spend. While the turmoil in Washington will invariably offer up several more nervous days as the debate lingers on, we believe that a relief rally for the market is around the corner once compromise replaces contention and unity trumps division. As always, if you have questions, I encourage you to contact me.

Best Regards, Mark C. Gosselin


Mark C. Gosselin
Branch Manager
Investment Consultant
11200 Broadway
Suite 2743
Pearland, TX 77584
832 895 6627 office
http://www.markgosselin.com/



The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

This research material has been prepared by LPL Financial.

Tracking #749471 | (Exp.07/12)

　

2011 Mid-Year Outlook, A Mix of Clouds and Sun: On Track

In the first half of 2011, the investing climate has been favorable — producing modest single-digit gains for the major asset classes. Two years after the green shoots of economic growth were first evident in mid-2009, they have blossomed and taken root. However, neither bulls nor bears, we continue to expect the economy and the markets will be range-bound in 2011. Bound by economic and fiscal forces that will restrain growth, but not reverse it, we adhere to our prior forecast for modest single-digit rates of return: high single digits for stocks and low single digits for bonds.

At the mid-point of the year, 2011 is on track for the key elements of our forecast that we articulated at the end of 2010:

• The job market is staging a comeback. Our expectation for the creation of roughly 200,000 net new jobs on average per month in 2011 has been met, so far.
• Policymakers have delivered economic stimulus. The Federal Reserve (Fed) has provided substantial economic stimulus, concluding the QE2 Treasury purchase program on June 30, 2011.

• Investors are playing it safe. Inflows to riskier markets remain anemic, contributing to modest performance for both stocks and more aggressively postured bonds.
• Currencies are influencing returns. As we expected, the currency impact on investing has been pronounced in 2011. The U.S. trade-weighted value of the dollar has fallen about 5% so far in 2011.

Key themes for investors can be found in a set of transitions unfolding in the second half of 2011. These transitions may offer investors positive options, in a period where the performance of the major indexes is likely to be lackluster. These transitions include:

• The evolution in the stage of the business cycle from economic recovery to modest, uneven growth. 
• The change in economic policy to the withdrawal of the fiscal and monetary stimulus provided over the past several years.
• The return of inflation that we call reflation.
• The shifting geopolitical landscape.

Market volatility, which we expect to remain elevated, may present risks to be sidestepped and opportunities to be taken advantage of. Investors with a more opportunistic profile may benefit from a tactical approach to investing in order to find attractive opportunities when offered and successfully take profits when appropriate. Longer-term strategic investors should consider remaining broadly diversified. As always, if you have questions, I encourage you to contact me.

Sincerely, Mark C. Gosselin


2011 Mid-Year Outlook


Mark C. Gosselin
Branch Manager
Investment Consultant
11200 Broadway
Suite 2743
Pearland, TX 77584
832 895 6627 office
www.markgosselin.com



The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult me prior to investing.

All performance referenced is historical and is no guarantee of future results. 

All indices are unmanaged and cannot be invested into directly.

Past performance is no guarantee of future results.

Quantitative Easing is a government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.

Stock investing may involve risk including loss of principal.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and are subject to availability and change in price.

This research material has been prepared by LPL Financial.

Tracking #741855 | (Exp.06/12)