What's New? Feddern Financial Consulting Group TODAY'S NEWS:

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1 Subject: Feddern Financial Consulting Group Newsletter What's New? Feddern Financial Consulting Group TODAY'S NEWS: The U.S. dollar just hit a 13-year high. Today we see the performance of the U.S. Dollar Index. This index tracks the dollar's performance against major currencies like the euro and Japanese yen. You can see that the U.S. dollar has "broken out" in a big way. Two weeks ago, it hit its highest mark since This is a very bullish sign. It tells us the U.S. dollar will keep getting stronger. And that would impact financial assets around the world. You see, the U.S. dollar is the world's reserve currency. When it makes big moves, everything from bonds to commodities fluctuates. It also has a huge impact on stocks. Last week, the Financial Times explained how the strengthening dollar is impacting different stocks: Industries that are considered safer and nearly "bond-like", such as real estate trusts and utilities, were hit hard on Wednesday. Financial stocks, which benefit from rising interest rates, and smaller companies, that are shielded from the impact of a stronger dollar, rose to fresh records. This is one of the biggest stories in the investing world right now. Over the next few days, we'll explain what the stronger dollar could mean for your money. In this issue

2 TODAY'S 401-k Asset Allocation Changes. Fidel Castro is DEAD!... SO WHAT?. AAII/LUG's Group Info ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ TODAY'S 401-k Asset Allocation Changes PLAN NAME BUY SELL LINK TO DETAILS and the Five Profiles FFCG-Ultimate: Anderson Law Nu-tec Roofing oibax Nationwide: Ahead HR Socially Responsible: OneAmerica: TransAmerica - MEP

3 The following market signal changes were issued by VectorVest as of: stock Market Call - UP: as of The "Holy Grail" will be fully invested in the following stocks as of : BCS (Barkleys) TWMJF (Canopy Growth) CENX (Century Alluminum) EVDAY (Everyday Health) GNK (Genco Shipping) KRO (Kronos Worldwide) LNTH (Lantheus) MGI (Money Intl) RRTS (Roadrunner Trust) TROX (Tronox Inc) We run the algorithms every Friday night and make any changes the following MONDAY/TUESDAY % YTD ( ) The following market signal changes were issued by Net-Signal as of: US STOCKS - BUY ( ) Domestic

4 Bull Alert Since 5/25/2016 Nov 18, 6:45pm CT - US equities were lower. - The Dow was down -.2% and the Nasdaq fell -.2%. netsignal issued a US Equity Bull Alert effective for Thursday, May 26. With our previous Alert which lasted 3 months, US Equity markets rose while we were in cash. With this new Alert that is five months old, netsignal is 8.5% ahead of breakeven. FOREIGN STOCKS- SELL( ) International Bear Alert Since 6/10/2016 Nov 18, 6:40pm CT - International markets were quiet. - The FTSE was up.3% and the DAX fell -.2%. Funds were lower as ishares International (EFA) fell 1.1% and ishares Germany (EWG) was down -.9%. netsignal is issued an International Fund Bear Alert effective for Monday, June 13. Key hedge funds shorting foreign markets have been pulling the European markets lower. With our previous Alert, international markets fell as ishares International (EFA) was down -2.6% and with ishares Germany (EWG) was down -3.5%, same as buy and hold. EMERGING MARKETS -SELL ( ) Emerging Markets Bear Alert Since 6/10/2016

5 Nov 18, 6:45pm CT - Emerging Markets were mixed. - The Hang Seng was up.4% and Shanghai was down -.4%. Funds were lower as ishares Emerging Markets (EEM) fell -.5% and ishares China (FXI) was off -.1%. netsignal issued an Emerging Market Bear Alert effective for Monday, June 13. Now, Brexit has stung the emerging markets. With the previous Alert, we beat buy and hold by.2% measured against the ishares Emerging Market (EEM) and by.8% measured by ishares China (FXI). This new Alert is 20 weeks old and we are behind buy and hold by several percent. GOLD - BUY ( ) Gold Bull Alert Since 6/9/2016 Nov 18, 7:45pm CDT - Gold was up $1 closing at $1, Gold funds were lower as Spdr Gold Trust (GLD) fell -.9% as did ishares Gold Trust (IAU). netsignal issued a Gold Fund Bull Alert effective for Friday, June 10. The previous Alert did not last long, less than a month. Gold has turned around as George Soros has shorted stocks, pushing gold higher. Our gold model is still doing well and is up 13.6% over the past 18 months. This new Alert is 20 weeks old and we are 5.4% below breakeven The following market signal changes were issued by our LONG/SHORT S&P 500 as of Market Call - Based on the 20-day moving average of the S&P Spyders:

6 SSO/ULPIX are LONG the S&P x2 SDS/URPIX are SHORT the S&P x2 As of this strategy has been added to and is available for all participants in our FFCG "Ultimate 401-k" platform custodied at Lincoln Trust As of : CASH Bruce's Daily Comment: The SPY gapped down this morning and traded down almost all day, ending down $0.71. Volume was about the same as yesterday and below the average. Stochastics are still moving sideways. Apple missed earning after the bell today (down about 2%), we still have a number of big companies still to report this week. The SPY stopped the down day at the Tline (Steve Bigalow's trade line)... will it hold or will we move down to the support area about $212.00ish (down another $2.00)... we will see. Recommended Reading: High Profit Candlestick Patterns by Stephen W. Bigalow Japan is NUTS!!! What the heck Japan?! You've gone completely off the reservation. Since late 2012, you've gotten more and more desperate in your attempts to make QE work. You've literally tripled your QE efforts compared to the extremes both the U.S. and Europe reached.

7 What will it take to get it into your head that it's NOT a competent or sustainable long-term strategy! It not only artificially stimulates and perverts an already "coma" economy. But it also pushes down the yen and gives Japanese companies an unfair trade advantage for their exports. Donald Trump is calling China a currency manipulator. But the truth is they've been fighting the fall of their yuan with $1 trillion in foreign exchange reserves. Japan is far worse, buying their own bonds to purposely force their currency down. Japan's massive QE has pushed its sovereign bond yields to the lowest in the world while it has the highest government debt to GDP of any country by far - at 250% and rising! Is that cheating or what?! What type of rules of competition do we have globally if Japan can get away with this? The problem with Trump, who would like to slap tariffs on Japan to compensate, is that doing so would only start a trade war that would weaken an already weak country (the third largest in the world). Any hit to already falling global trade will just crush an already fragile and overindebted world. The tariffs of the Great Depression only added to the overall decline because everyone retaliates, just like every major country has used QE to artificially prop up their economy and their exports. It's just that Japan has done it far beyond everyone else, as the following chart shows.

8 That's beyond crazy. That's insane! See larger image Since late 2012, Japan has taken its QE from 32% of GDP to a whopping 95%... and it's still rising! How could this be allowed? Our global trade organizations are totally toothless. Note that the U.S. and the European Central Bank have tapered off and on in their QE efforts. When the ECB had to taper due to increasing side effects, the U.S. stepped up in late 2012 and Similarly, when the U.S. was forced to taper against a rising dollar and excess speculative flows, the ECB stepped up again. Now the ECB is at 34% of GDP and rising, while the U.S. is at 24% and falling ever so slightly. But back to the elephant in the room... Japan is currently printing money at 27% of GDP per year. The Bank of Japan now owns 40% of its massive government bond market. It's also been buying stock ETFs. It owns 60% of that entire market. How long can they do this without running out of bonds and securities to buy? It's a suicide mission: Generate the highest government debt ratios and then buy up your entire bond market. Wouldn't it be nice if households and businesses could borrow way beyond their means and then tap free money to

9 pay off their debt and keep their interest rates near zero? Absolutely! But that's cheating. What Japan is doing is cheating! Plain and simple. They're trying to get something for nothing. And it can only end badly. The biggest incentive behind Japan's insane policies is to keep the interest rates very low on its gargantuan debt. Japan's 10-year Treasury had a negative yield at -0.29% in July. Normally a country with zero growth and superhigh debt would have to pay higher than average rates. This is the clearest way to destroy free market systems and disciplines. The problem, as usual, is that most people praise the free market capitalistic system for its innovation and productivity, but then they want to cheat and get an unfair advantage and avoid the natural disciplines it imposes that make it work so well. Due to such extreme QE, Japan's rates have risen the least: from -0.29% to +0.04%, or 35 basis points (bps). With near zero inflation and its debt levels, Japan's rates should be more like 3.0%. But if that were the case, Japan's budget would be more than taken over by interest payments alone, even at that historically low rate. So, this clearly is NOT a good long-term strategy! Of course, it's not just Japan or China cheating. The whole world is a member of this club... Germany's rates have only risen from -0.20% to +0.34%; the UK's from +0.50% to 1.50%. Thanks to strong ECB quantitative easing, all European rates are way below market. But here's the real ringer: Italy's rates have risen from +1.0% to 2.2% and are still below the U.S., which was at 2.42% recently (after rising 110 bps in four months). Italy is bankrupt! It has 18% non-performing bank loans and government debt is at 139% of GDP! Its rates should be 5% to 7% and rising rapidly. Mark my words, as Italy becomes the next Greece, we will see rates at 10% to 20% within the next year. QE is cheating. Period! It artificially stimulates an economy, takes out all financial discipline, favors borrowers over savers, encourages fruitless financial engineering rather than productive investment, creates bubbles in all financial assets from bonds to stocks to real estate to commodities... and destroys the very free market system that created so much income and wealth in the first place. So here's how this likely ends (and soon)... Japan and the ECB have learned that negative rates backfire on you. Banks can't make money on such low rates, so

10 they increasingly speculate. They take more and more money out of their accounts at the central banks to avoid paying for the privilege of having the money there. Then larger depositors take money out of the banks for the same reason. Then banks buy less sovereign bonds, especially the safe-haven ones like U.S. Treasurys, and that pushes yields up even further. I plan to talk about this more in the January Boom & Bust issue, so watch out for it. There will be details on how to prosper as this unfolds. In the meantime, check out Project V. Japan has the imminent problem though. They're no longer targeting negative rates because it's now clear they backfire. But they do want to keep their 10-year yield near zero. Given that rates are spiking around the world (as I predicted over a year ago that they would do), they will have to accelerate purchases. That means they'll literally start running out of bonds and ETFs to buy. Mario Draghi in Europe is already facing that problem. We're about to see this blow up in Japan's face. Japan will soon reach the limit in this obvious public finance Ponzi scheme. When it does, that will create a loss in confidence in this entire something-for-nothing system of central bank policies. Then it's game over. That's why I see very high chances that all comes crashing down in AAII Group Info ============================ AAII will Meet on THURSDAY at 6:00 PM at the AUDUBON CC The Audubon Country Club is conveniently located off Preston Highway, approximately one mile South of Eastern Parkway and North of I-264 (Watterson Expressway) in Audubon Park. After entering off of Preston onto Audubon Parkway, 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 preregister by to attend this program, in order for the country club to provide appropriate seating arrangements. Please confirm your

11 attendance by to There is a $10 charge for attending the meeting 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 certainly invited to participate in the buffet dinner for for an additional $15 (a total of $25) DEC 15, PM TENTATIVE Agenda: SPECIAL GUEST SPEAKER: Expanded Report on GOLD We are working on several NEW ETF portfolios for your consideration/: 1. Day/Hagan International Rotational ETF We will also have: 1. A Discussion on Point and Figure charting to allow you some leeway in your planning just in case the other experts are RIGHT or WRONG along with correlations to the 50-day, 20-day, and 8-day Moving Averages 2. The Newest/Greatest Development in Energy (And it has NOTHING to do with Oil, Nat Gas, and Coal!) 3. VectorVest and the "Holy Grail Portfolio" and exactly how it's constructed

12 AND IF TIME PERMITS 1. Tesla and other Stocks to watch in SPECIAL REPORT AND DISCUSSION: S&P Long/Short 3. A NEW portfolio to take advantage of LNatGas Well Certainly Be another Pivotal Year Trump's new cabinet appointments will be ready for Congressional approval Congress will vote on the Trans-Pacific Partnership The Show-Down on the Budget will Continue The Debt-ceiling will raise it ugly head in March An update on all of the "Alternative choices" from our model portfolios complete with hard-copy pass-outs to revel the good, the bad, and the ugly S&P LONG/SHORT - Bruce Richards (dissecting the new signals and indicators) UPDATE: A New Dividend Portfolio from the Highest Yielding Stocks in the DOW - REVISED UPDATE: A diversified Portfolio of GOLD and Gold Miners UPDATE: A New Portfolio of 13 REITs UPDATE: HedgeFund: HSax Partners (Park City UT The"Halloween Fund" - Sell in May and Go Away (until Halloween) A REIT "Healthcare Portfolio"

13 Meeting is $10 Dinner is an additional $15 Reservations Requested and Appreciated =================================================================== Louisville Users Group (LUGS) Info ============================ The next LUGS Will Meet SATURDAY FREE - No Reservations needed 10:00 AM TENTATIVE A7-29GENDA: How to mitigate the Downside risk in your portfolio while participating in the Upside o Harry Dent's latest warning - "The Forecast for 2016 Most Difficult Time" o Following and Deciphering the "January Effect" o Sell in May and Go Away - The Halloween Fund! The "Kissinger Cross" Presented by Jim Rickards The "Death of the IPhone" AND An update on all of the "Alternative Choices" from our model portfolios complete with hard-copy pass-outs o S&P LONG/SHORT - Bruce Richards (dissecting the new signals and indicators)

14 o o o o o o o UPDATE: A New Dividend Portfolio from the Highest Yielding Stocks in the DOW - REVISED UPDATE: A diversified Portfolio of GOLD and Gold Miners UPDATE: A New Portfolio of 13 REITs UPDATE: Hedge-fund: HSax Partners (Park City UT) The "Holy Grail" using VectorVest The"Halloween Fund" - Sell in May and Go Away (until Halloween) A REIT "Healthcare Portfolio" Target-date Funds and How They Performed A NEW CHART that tells you "How Long You'll Live" UPDATE: A New Dividend Portfolio from the Highest Yielding Stocks in the DOW - REVISED UPDATE: A diversified Portfolio of GOLD and Gold Miners UPDATE: A New Portfolio of 13 REITs 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 Know your target audience. Who are your most important customers, clients or prospects, and why? Know what is important to them and address their needs. Include a photo to make your message even more appealing. Quick Links... Visit our Website

15 Otto G. Feddern Feddern Financial Consulting Group 603 North Shore Drive Suite 102 Jeffersonville, IN (502) Office (502) Cell Feddern Financial Consulting Group, 603 north shore drive, suite 102, jeffersonville, IN SafeUnsubscribe Forward Update Profile About our service provider Sent by in collaboration with Try it free today