1241 Nilles Road Fairfield, Ohio (513) In This Issue

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1 Wealth Management Insights October 22, Nilles Road Fairfield, Ohio (513) In This Issue Financial View of the Week View of the Week Report Card on Economic Growth The number one economy in the world, the US, is continuing to slowly expand at a modest pace from the worst scenario since the Great Depression. The jobs report showed 248,000 jobs were added since August. Wages, though, aren t up and unemployment fell to 5.9%, mostly resultant of the (lack of) participation rate. This alone should keep the Fed from significantly raising interest rates until mid-2015, which increases even then, in my opinion, will be modest. The fed rate remains at the lowest level in history, under 0.25% so, sorry to say that your low bank accounts and bond returns are likely to continue. Significant consumption from the next demand wave appears to be 2020, when the millennials (estimated at 80M+) will reach their peak consumptive age of 46, coupled with the anticipated energy boom revolution. Quantitative Easing The top consumptive group is currently the EUROZONE ECU, which is still fighting deflationary pressures as their housing bubble is two-three times behind the US. It is widely predicted that the European Central Bank will have to continue their own form of quantitative easing (QE) to finance a recovery like the US and Japan. As our own QE continues to unwind, it will strengthen the dollar and likely weaken emerging markets. We ve watched QEs of various sorts globally weaken bonds and interest rates and strengthen stocks in numerous markets across the globe. The number two economy, China, appears to be dumping their chief banker

2 (like Janet Yellen) in an apparent effort to speed up growth as their GDP recently fell to around 7%. Zhou Xiaochuan has served around 12 years and been closely associated with market-based reforms that may now be pushed aside for growth think funny money business. Although there are some concerns about China's real estate bubble, their numbers are quite different when compared against the US and other developed nations. According to Kiplinger (October 3, 2014, vol 91, number 40), few of the homeowners are underwater in mortgages because China require 30% down payments. In addition, China has just 6% of financial system assets vs 18% in the US during the housing boom. Also, 75% of the "ghost town" mega cities dwellings are presold units. No one wants to be the first to move in, so the government builds infrastructure by relocating government controlled banks, agencies and universities to new cities taking the build it and they will come approach. As we continue to slowly climb out of the Great Recession, the newly deployed economic devices of QE and its near/long-term effects remain to be seen and will likely create opportunities and perils unique to this period in time in history. Stay tuned for what s to come as some of the rules of the game have already begun changing Certain statements contained within are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. The opinions expressed are for general information only. They are not intended to provide specific advice and do not constitute an endorsement by NPC. News and Views Weekly Market Recap Week ended October 17 SEESAW MARKET: U.S. stock indexes fell about 1%, but swung wildly in recording that modest weekly decline. Anxiety peaked on Wednesday, when the Dow plunged as many as 460 points before partially recovering in the afternoon. YIELD DROPOFF: Bond volatility was comparable to the turmoil in the stock market. The yield on the 10-year U.S. Treasury bond plunged on Wednesday, falling below 2.0% for the first time in 14 months. Its yield was 3.0% at the start of this year. BONDS BEATING STOCKS: Through Thursday, average year-to-date returns

3 were negative for 7 of the 9 U.S. equity mutual fund categories that Morningstar tracks. In contrast, average returns were positive across all 16 taxable bond fund categories. Market-moving headlines: week ended October 17 TECHNICAL MILESTONE: Stocks started the week on a negative note as the S&P 500 fell below its 200-day moving average, a technical level that analysts said triggered further selling. OIL DROPS: A sharp decline in oil prices on Tuesday interrupted the momentum in a stock rally that day. Oil prices tumbled 4.6% in the biggest daily decline in nearly two years. Oil prices have fallen more than 20.0% since June. RETAIL DECLINE: An unexpected decline in U.S. retail sales helped to trigger Wednesday s heaving selling, but analysts attributed much of the turmoil to disappointing news from overseas. Continuing economic weakness in Europe and Asia has fueled concerns that the U.S. economy will grow more slowly than expected. NEAR CORRECTION: At one point on Wednesday, the S&P 500 fell to a level that was 9.5% below its record high of 2,011, reached on September 18. That put the market within range of a 10.0% correction. The index would have to fall to 1,810 or lower to mark a correction. BUSY TRADERS: Trading surged on Wednesday. Stock trading volume was the highest in nearly three years, while U.S. Treasury bonds changed hands at the fastest pace in at least a decade, according to brokerage ICAP. SIX-DAY SLIDE: The Dow finished slightly down on Thursday, marking the index s sixth daily decline in a row. The index fell 5.2% during that period. FRIDAY REBOUND: Stocks on Friday recovered some of the week s losses as investors welcomed the latest quarterly financial results from companies such as General Electric and Morgan Stanley. The Dow climbed 263 points. The week ahead: October Monday: No major reports scheduled Tuesday: Existing home sales, National Association of Realtors Wednesday: Consumer Price Index, U.S. Bureau of Labor Statistics Thursday: The Conference Board Leading Economic Index for the U.S.; Market Flash Eurozone Composite Purchasing Managers Index; HSBC Flash China Manufacturing Purchasing Managers Index Friday: New home sales, U.S. Census Bureau Weekly Market Recap & Market-moving Headlines provided by The data provided is for general information only. It is not intended to provide specific advice or

4 recommendations for any individual and do not constitute an endorsement by NPC. NPC is not to be held responsible for and may not be held liable for the adequacy of the information available. Indices are unmanaged measures of market conditions. It is not possible to invest directly into an index. Past performance is not a guarantee of future results. Securities and advisory services offered through NPC, member FINRA/SIPC, a Registered Investment Advisor. Rik Saylor Financial, John Hancock, and NPC are separate and unrelated entities. Quote of the Week "There are two ways of spreading light: to be the candle or the mirror that reflects it." Edith Wharton brainyquote.com Recipe of the Week Pecan Pie Dip crazyforcrust.com 6 Cups Of Dip Ingredients: 3 eggs 1 cup dark corn syrup (Karo) 1/3 cup granulated sugar 1/4 cup butter, melted 1/8 teaspoon salt 2 cups pecan halves Assorted dippers: shortbread cookies or graham crackers Directions: 1. Preheat oven to 350F. Spray a 9 or a 9.5 pie plate with cooking spray. 2. Lay 2 cups pecan halves in the bottom of the pie plate.

5 3. Whisk eggs, corn syrup, sugar, melted butter, and salt in a large bowl. Pour into prepared pan. Tap the pan on the counter a few times to raise the pecans up to the top. 4. Bake for about 35 minutes, until the center is only slightly jiggly when pan is gently shaken. 5. Cool slightly before serving. 6. Serve with pie crust dippers, shortbread cookies, a spoon, or graham crackers. Note: you can use Pillsbury refrigerated pie crusts or a from scratch pie crust to make your dippers. 7. To make the dippers: cut 2" circles of pie crust, sprinkle each with a pinch of sugar and bake until golden, minutes. Golf Tip of the Week Power Tip: I turn my hips hard through impact, while I keep my head way behind the ball. This means my whole left side is stretched and extended at impact. All power hitters are in this same position at impact. Grace Park golf swings Health Tip of the Week Foods that help teeth stay white (especially after whitening) include lettuce, broccoli, spinach, cheese, apples, pears, cauliflower, cucumbers, and celery. Foods to avoid after whitening (for at least 2 days while the enamel is still porous) include dark drinks such as coffee, cola, tea, dark juices and foods with high pigment content such as berries, cherries, pomegranates, hard candy, beets, curry, tomato sauce, and vinegar. A natural whitener is a paste of strawberry and baking soda, left on for 20 minutes then washed off. Brush teeth again 30 minutes later. healthtip.com

6 Green Tip of the Week Recycle your coffee grounds If you make coffee at home, you might already add the grounds to your compost bin or wormery. But did you know you can also sprinkle them directly on the soil? They're a great free source of nitrogen and minerals. If you don't drink coffee, your local cafe or coffee shop will probably be more than happy to donate their used grounds. friends of earth Workshop Schedule *****ATTENTION***** Monthly Market Economic Insight November 2014 Medicare Open Season 2015, Revealed! Thursday, November 12:30pm Open Enrollment starts October 15th. Be prepared! New Plans New Players Is the Affordable Care Act affordable in 2015? Updates on your carrier and many others Education = Smarter Decisions Savvy Social Security Planning Tuesday, November 6:00pm Social Security is no doubt complex. There are literally dozens of personal and household factors that can play a role in the monthly and cumulative lifetime

7 benefits that could have a significant impact of your retirement savings. Come and learn about the many ins and outs of this vital financial asset and how to maximize it to your advantage. End Of Year Tax Strategies 2014! Year end planning starts now! Smart options may be available, but first you have to know what they are, and second how they affect your situation. Attend a special Year End Tax Planning Workshop with Lisa Lawhorn, E.A. from Rik Saylor Financial Tax Services, LLC. You will learn some little-known, tax efficient strategies that could potentially save you dollars. Tuesday, November 11th Thursday, November 13th 12:30 PM 6:00 PM All sessions will be held at Rik Saylor Financial (in Clock Tower Place) 1241 Nilles Rd. Fairfield, Ohio Light snacks will be provided. Each session is approximately 60 minutes. Call to reserve your spot for any or all sessions! State of the Market Report Conference Call Wednesday, November 5th, 12:00PM Join Rik Saylor and Eric Hamberg as they recap what occurred in the markets during the 3rd Quarter. They will be talking about the global economy in a game of tug-of-war. On one hand, the U.S. economy is pulling ahead, while Europe is slipping as it deals with deflationary challenges and geopolitical risks. Emerging markets are increasingly becoming volatile. The implication is that passively investing in the broad index might not work as well as before, and what we will do moving forward to help our clients continue growing and protecting their foundation for financial success during retirement. To join the call dial 1(877) and Enter pass code FOR INFORMATION ON RIK SPEAKING TO YOUR CLUBS OR ORGANIZATIONS PLEASE CONTACT KIM AT OR KIM@RIKSAYLORFINANCIAL.COM

8 Like us on Facebook: Rik Saylor Financial Follow me on Twitter: riktirement Advisory services offered through Rik Saylor Financial, a Registered Investment Adviser. Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, and a Registered Investment Adviser. Rik Saylor Financial and NPC are separate and unrelated companies Rik Saylor Financial. All Rights Reserved.