What's New? Feddern Financial Consulting Group TODAYS NEWS:

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1 Subject: Feddern Financial Consulting Group Newsletter In this issue What's New? Feddern Financial Consulting Group TODAY'S NEWS this website on a regular basis TODAY'S 401-k Asset Allocation Changes. The Markets Are Doing the "Santa Claus Rally" AAII/LUG's Group Info TODAYS NEWS: The final Federal Open Market Committee (FOMC) meeting of the year (and of Ben Bernanke's career as Fed chairman) created a textbook "sell the rumor, buy the news" scenario. The central bank's disclosure that it would begin to scale back its asset-buying efforts led to a sharp rally in stocks that quickly took the major indexes back to record highs. The resolution of the "will they or won't they" debate -- along with a two-year budget deal now on President Obama's desk -- eliminated a cloud of market uncertainty and

2 provided some relief to wary investors. As the end of 2013 approaches, Most investors hope that the traditional Santa Clause rally continues. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "The difference between stupidity and genius is that genius has its limits." - Albert Einstein ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "If you don't listen to the media, you're uninformed... If you do listen to the media, you're misinformed." - Mark Twain Here is why we've been so conservative for most of the year. On New Years Eve, our slumping bull with be 4½ years old... and the tap of cheap money could be shut down sometime in I doubt we'll see these numbers again in our lifetimes.

3 My advice? Take all that talk from Wall Street insiders, talking heads on TV, and your friendly broker, about rallies, housing recoveries and an endless flow of easy credit with a BIG grain of salt. And it's not just me. Recognize these guys? Seven well-known market experts who predict a crash-or something eerily close to it-by the end of 2013: 1. Peter Schiff takes his "doomsday" prediction a step further Euro Pacific Capital CEO Peter Schiff issued a warning on Fox Business last year: "We've got a much bigger collapse coming." Then a new bombshell in recent weeks: "I am 100% confident the crisis we're going to have will be much worse than the one we had in 2008." 2. Bill Gross: "Credit supernova" to turn 2013 bull into angry bear Bill Gross, head of the massive Pacific Investment Management bond giant, has $2 trillion at risk when the Fed's cheap money scheme goes bust. He issued an ominous forecast that the global central bank-induced credit bubble "is running out of energy and time." 3. Gary Shilling predicts the "grand disconnect" will trigger 'shocker' Economist Gary Shilling said a "shock" could be just around the corner. Now he says that the Fed's taper-reducing the $85 billion monthly bond buying program intended to keep long term interest rates low-could just be that shock. 4. Bond guru Jeffrey Gundlach predicts "third wave" of 2008 meltdown The CEO of Doubleline Capital is one of the few who predicted the 2008 meltdown. Now he says the real damage is yet to come. "Watch for an" ominous third wave, "a bigger crash, whose impact will far exceed the damage of 2008." 5. Jeremy Grantham: America's growth and prosperity "gone forever" Grantham's GMO firm manages $100 billion. He gave a disturbing answer recently when asked: "Is U.S. Economic Growth Over"? Yes, says Grantham, "the U.S. GDP growth rate... is gone forever." By 2100, America's GDP growth will fall back to where it started before the Industrial Revolution, to an annual rate of less than 1%. 6. Nouriel Roubini: "Prepare for the perfect storm" in an unstable world

4 American economist Nouriel Roubini anticipated the collapse of the U.S. housing market. He tells Slate.com: "Sooner or later, another ugly fight" over debt, and markets will "become spooked" and drag on an economy growing barely at a 2% rate.and then there's Syria and other hot-button triggers waiting to ambush a jittery stock market Reagan's budget director sees "apocalypse... get out now" David Stockman wrote an op-ed piece in the New York Times warning of an economic "apocalypse" dead ahead. Why? He's not happy about "a rogue central bank that has abetted the Wall Street casino, crucified savers on a cross of zero interest rates and fueled a global commodity bubble that erodes Main Street living standards." I can't tell you if all of this is about to happen, but I do know after 30 years in this business that it all makes sense. We're very confident that our discipline will protect you and your money in our 1% at Risk models...especially now that we have the capabilities of using our FIVE Inverse Mutual Funds. We are also very confident that our 20-day moving average fund developed by our representative Bruce Richards will perform very well with the inclusion of the Inverse ETF. You owe it to yourself to see WHAT THIS IS ALL ABOUT on our next LUGs meeting here in my conference room OR at the Jeffersonville Library (depending on the size of the crowd.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Check this website on a regular basis It's truly eye-opening. We just passed the $16 T-mark AND We're closing in on $17

5 TODAY'S 401-k Asset Allocation Changes BE AWARE: We have raised all of the " PROTECTIVE STOPS" on EVERYTHING. ``````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````` Click this link for an incredible website for calculators for your 401-k AND financial planning ````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````` This market is due for a pullback. You know it and I know it. AND it may have already begun! We had a nice turnout for our first LUGS meeting on JUN 8th, JUL 13, Aug 10, Sep 14, Oct 12, Nov 9, and Dec 21 The next one is JAN 14-10A The real question is, what are you going to do? Some investors will let it scare them off... others will stand frozen in fear. And they'll all lose big because of it. So I want to make sure you are 100% prepared when the inevitable pullback happens. Because when it does, you don't have to be like a deer-in-the-headlights! It is possible to get out of the way...and use Inverse Funds for a profit-making opportunity. We will spend some appreciable amount of time reviewing and analyzing them.

6 Then look for the next opportunity as the down-draft will end and new bull market will begin. We at FFCG began our detailed research on downside risk way back in 1999! So we've had some experience in avoiding catastrophes like 2008 and recognize opportunities like 2003 and Its not rocket science, but it did take a fair amount of work to develop our methodology using what's called point and figure analysis which was originally began by Charles DOW when he became the first editor of the Wall Street Journal in Over the years, we have developed a unique and really educational 1½ hour seminar that you may or may not have seen. But since we constantly update the material, we've decided to offer the seminar in my office conference room on the second SAT of each month. The next one is JAN 11th. Just Recently... We have decided to roll-out our new S&P 500 Trading account developed and researched by our Investment Advisor in Central Indiana, Bruce Richards. Bruce will join us each month for the presentation. Here's the annual historical returns for the ETF Long/Short portfolio (notice and then and then 2010!): Calendar Year* S&P Inverse SSO/SDS S&P 500 TR Difference *Notice the returns compared to the S&P TR

7 All trading positions are based on the 20-day moving average This will be a standing meeting, occuring every month. Please me if you plan to attend and feel free to invite any guests. We ARE limited to 9-10 people in my conference room. Make no mistake, this is not a sales presentation on any product; but simply an emplanation of how we operate our new platform. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Feddern Ultimate 401-k (40 No-Load Index Funds) Welcome: Anderson Law, LLC Dynamark Graphics Group BUY: RYMIX (Telecomm) Since the risks are so high, we will be using our short-term indicators as evidence to sell. This seldom happends when bonds and stocks are linked and move in the same direction at the same time. Consider this a "high risk" situation. We have raised ALL of the stops in anticipation of extreme volatility Nationwide Financial 401-k (34 Load-Waived Funds)

8 WELCOME: Ahead Human Resources, Inc SELL: DAVGX (LCBlend) This seldom happens when bonds and stocks are linked and move in the same direction at the same time. Since the risks are so high, we will be using our short-term indicators as evidence to sell. Consider this a "high risk" situation. We have raised ALL of the stops in anticipation of extreme volatility Socially Responsible Portfolio No Change This seldom happends when bonds and stocks are linked and move in the same direction at the same time. Since the risks are so high, we will be using our short-term indicators as evidence to sell. Consider this a "high risk" situation. We have raised ALL of the stops in anticipation of extreme volatility.

9 OneAmerica 401-k (25 Load-Waived Funds) SELL: NMCAX (MCGrowth) JATTX (SCGrowth) This seldom happends when bonds and stocks are linked and move in the same direction at the same time. Since the risks are so high, we will be using our short-term indicators as evidence to sell. Consider this a "high risk" situation. We have raised ALL of the stops in anticipation of extreme volatility VISIT OUR WEBSITE FOR SPECIFIC RECOMMENDATIONS We have added a new set of indicators provided to me by the folks at NetSignal which are used for the broad markets and give a general indicator of BUY or SELL. The following market signal changes were issued by NetSignal as of: US STOCKS - BUY ( ) FOREIGN STOCKS- BUY ( ) EMERGING MARKETS - BUY ( ) GOLD - BUY ( )

10 (If your company's 401-k could use our expertise in active asset allocation, let me know. We have a daily monitoring service that is designed to mitigate the downside risk for the participants. We did not lose any money in 2008! We doubt that your current provider - broker, agent, representative, trust officer, etc. has any concept of fiduciary responsibility and how to provide you and the others with meaningful, DAILY advice on what to own, when, AND how much...and most importantly WHEN NOT TO OWN!!!!) The Markets Are Doing the "Santa Claus Rally" On Friday, the Dow Jones Industrial Average not only set another new high but, according to The Wall Street Journal, it "closed at a record after adjusting for inflation." This means that the index has finally regained all of the lost ground of the past 14 years. The Journal said, "In that sense, the stock market's 'lost decade,' which in fact lasted longer than a decade, is finally ending." The S&P 500 also set a new record high as it gained 0.5%, with technology, its largest sector, up 0.9%. Apple (AAPL), Microsoft (MSFT) and Google (GOOG) were all big winners. And because of the heavy weighting on technology, the Nasdaq gained 1.2%. The Nasdaq was also pushed higher by the biotechnology sector. ishares Nasdaq Biotechnology (IBB) gained 2.6%. A Commerce Department report said that the economy grew at 4.1% in Q3, up from an estimate of 3.6%. And both job creation and industrial production are doing better than expected. At Friday's close, the Dow Jones Industrial Average was up 42 points at 16,221, the S&P 500 rose 9 points to 1,818, and the Nasdaq jumped 47 points to 4,105. On the primary

11 market of the NYSE, 1.9 billion shares traded with total volume of 4.9 billion shares, aided by quadruple witching and quarterly rebalancing. The Nasdaq traded total volume of 3 billion shares. On the Big Board, advancers outpaced decliners by over 3-to-1, and on the Nasdaq, advancers were ahead by 2.6-to-1. For the week, the Dow gained 3%, the S&P 500 rose 2.4%, and the Nasdaq was up 2.6%. Year to date, the Dow is up 23.8%, the S&P 500 has gained 27.5%, and the Nasdaq is ahead 35.9% AAII/LUG's Group Info ============================ AAII will Meet on THURSDAY at 6:00 PM at the AUDUBON CC AGENDA See the schedule below AAII Monthly Meetings ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The Audubon Country Club is conveniently located off Preston Highway, approximately one mile South of Eastern Parkway in Audubon Park on the left. After entering Audubon Park, take the first right and go all of the way to the end and you will be at the entrance to the Club. Parking is very convenient. Since this meeting is sponsored by the Louisville Chapter of the American Association of Individual Investors, you are always asked to pre-register by to attend this program, in order for the

12 country club to provide appropriate seating arrangements. Also, indicate if you plan to stay for the dinner afterwards. Please confirm your attendance by to There is a charge for attending the meeting of $10 to help defray some of our expenses And this is not a "prospecting seminar" conducted by a financial services firm selling financial products, and your addresses will remain private and protected. You are also invited to stay for the buffet which is an additional $15 (which makes the total $25 for the meeting AND the dinner.) About the American Association of Individual Investors From the beginning, AAII has answered the question, "Where can you go to get unbiased facts and effective knowledge about investing?" AAII was founded in 1978 to provide individual investors with effective investment education materials that with a bit of dedication could outperform the popular market averages. Over thirty years later, the 150,000 members of AAII report investment returns that are consistently higher than those of the stock market as a whole. AAII's purpose is to assist individuals in becoming effective managers of their own assets through programs of education, information and research. AAII Louisville Chapter offers investment education to members in a "person to person" social setting at the Audubon Country Club. Recent presentations have included "Economic Update" by Christopher Waller, Ph.D., Senior Vice President and Director of Research, Federal Reserve Bank of St. Louis, "Tax Ramifications of the Health Care Bill", by Joe Johnston, CPA, Strothman & Company, "Why Real Estate as Part of a Diversified Portfolio, Why Non-Traded REITs", by Scott Crawford, Regional Vice President, Realty Capital Securities, and Senator Rand Paul "A Legislative Update" Monthly chapter meetings regularly discuss attendees favorite stock and mutual fund selections, stock market timing indicators, leading and lagging sectors, and member presentations regarding how they manage their investment portfolios. In general, we discuss anything of interest to the individual investor. Whether you are an active or passive investor, you will find something of interest in the AAII Journal and our monthly meetings. ~~~~~~~~~~~~~~~~~~~~ 2013 Program `````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````` Since the AudubonCC is Closed for Jan, we will not meet until...

13 FEB 21-6 P - Agenda: UPDATE ON: "How to Trade the S&P for Fun and Profits" - Bruce Richards And he means REAL Profits!!!! AND Stock and Bond Indicators to Help You Determine "Where We Are" ---The "Holy Grail" Stock Portfolio Using VectorVest Rules - UPDATED ---Developing a new Watchlist for Fun and Profit by NEXT Christmas Reservations Needed and Appreciated (502) Otto Office (502) Otto Cell

14 Dinner and Meeting $25 Meeting Only $10 DON'T MISS THIS ONE! You don't need to be a member of AAII to attend the first time ========================================================== ALSO ========================================================== Louisville User Group (LUG) FREE - No Reservations needed SATURDAY - OCT 12-10:00 AM PROGRAM How to mitigate the Downside risk in your portfolio while participating in the Upside My Conference Room Coffee and rolls provided FEDDERN FINANCIAL CONSULTING GROUP 603 North Shore Drive - Suite 102 Jeffersonville, IN (502) Office (502) Otto Cell otto@fedderngroup.com

15 Quick Links... Visit our Website Otto G. Feddern Feddern Financial Consulting Group 603 North Shore Drive Suite 102 Jeffersonville, IN (502) Office (502) Cell Forward This was sent to by Update Profile/ Address Instant removal with SafeUnsubscribe Privacy Policy. Feddern Financial Consulting Group 603 north shore drive suite 102 jeffersonville IN 47130