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

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1 Subject: Feddern Financial Consulting Group Newsletter What's New? Feddern Financial Consulting Group TODAY'S NEWS: GOLD! If gold and gold miners were celebrities it would be time for them to look for a new PR team. Despite outperforming stocks in 2014 the group still carries the taint of the bubble that burst in With the popular SPDR Gold ETF (GLD) showing strong volume and the Market Vectors Gold Miners ETF (GDX) moving higher on Tuesday despite a brutal market for stocks it may be time for some traders to reconsider the barbaric metal as an alternative to suddenly suspect equities. Jonathan Krinsky, the chief technician of MKM Partners says gold and the miners are just getting going to the upside despite a slight pullback in the early stages of July. "A couple weeks ago we saw a pretty big breakout on the GLD. It was on the heaviest volume we've seen in about a year. Most of those gains have held so that tells you there are active buyers. As long as we consolidate around this range I think gold is headed higher."

2 miners having doubled the gains of the GLD in Beyond the action in the GLD Krinsky is encouraged by the price action in silver and the aforementioned miners. The miners are typically a higher beta version of gold itself so when gold is headed lower the miners get smoked but when the metal rallies the companies in the business of production see huge increases. From that perspective it's all systems go with the As a technician Krinsky takes a cold view of the metal. As long as the charts are on his side he'll stay with the trade but if and when momentum shifts he'll be gone. He says the breakout happened near $1,250 an ounce. As long as that level, which works out to about $120 on the GLD holds he's looking for a move to $1,400 for starters. If past is prelude the skepticism surrounding gold is bullish. At the very least it's the mirror image of September 2011 when gold was $1,900 and the S&P 500 (^GSPC) was hanging out closer to 1,000 than just under 2,000 where it is today. In this issue TODAY'S 401-k Asset Allocation Changes. 5 Investing Tips for Hot Markets. AAII/LUG's Group Info ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ TODAY'S 401-k Asset Allocation Changes

3 PLAN NAME BUY SELL LINK TO DETAILS and the Five Profiles FFCG- Ultimate: uapix,unpixhttp:// oibax,ryoix Anderson Law Nationwide: Ahead HR opocx Socially Responsible: ryoix OneAmerica: VISIT OUR WEBSITE FOR SPECIFIC ASSET ALLOCATION RECOMMENDATIONS We have added several new sets of indicators from NetSignal, VectorVest, and our 20- day MA of the S&P 500 which are used for the broad markets and give a general indicators of BUY or SELL. The following market signal changes were issued by NetSignal as of: US STOCKS - BUY ( ) June 5, 8:20pm CT - US Equity Bull Alert. - netsignal is issuing a US Equity Bull Alert this evening effective for Friday, June 6. The Fed has been all over the place with announcements regarding QE. What is clear is that the Fed will step in at any sign of a slowing economy. It is happening again with the new Fed Chairman continuing the same policy. With our current Alert which is three months old, we finished slightly behind buy and hold which was up 3.5%. FOREIGN STOCKS- BUY ( ) June 20, 8:20pm CT - International equities were mixed. The UK was up.2% and the German DAX was down -.2%. Funds were down as ishares Msci International (EFA) fell -.2% and ishares Germany (EWG) fell -.2%. ishares Japan (EWJ) was up.1%. netsignal issued an International Fund Bull Alert effective for Tuesday, February 18. We are up 3.9% at this point in the Alert which is three and a half months old measured by ishares Msci Emerging Markets (EFA).

4 EMERGING MARKETS - BUY ( ) June 5, 8:20pm CT - Emerging Market Bull Alert. The recent bear alert has failed to hold as the dollar has continued to fall. netsignal is issuing an Emerging Market Bull Alert this evening effective for Friday, June 6. Emerging markets have staged a quick reversal. While both the Shanghai and Hong Kong markets were flat with this Alert, emerging market funds denominated in dollars rose sharply as the dollar fell. With this Alert, we were behind buy and hold by -1.9% measured against the Hanseng. netsignal performance for specific emerging market countries has been mixed. For example, over the past two years since January 2012, netsignal has beat buy and hold with Brazilian ETF's but were slightly behind buy and hold with Chinese funds and ETF's GOLD - BUY ( ) Jun 19 7:30pm CDT - Gold Fund Bull Alert. - netsignal has issued a Gold Fund Bull Alert this evening, effective for Friday, June 20 close. Gold has quickly turned around with a 3.5% gain today. Deteriorating circumstances in Iraq has caused a move to safety. Our Bear Alert was short and gold rose 5.5% while we were in cash. Consider adding gold ETF's such as Spdr Gold Trust (GLD), ishares Gold (IAU) and Market Vectors Gold Miners (GDX) to your portfolios The following market signal changes were issued by VectorVest as of: Stock Market Call - BUY: ( ) The "Holy Grail" is in the market with 10 stocks as of the above date 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: 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

5 FFCG "Ultimate 401-k" platform custodied at Lincoln Trust BUY: = +8.92% 5 Investing Tips for Hot Markets The strongest performing groups in the equity sector so far in 2014 could be promising in the coming months There's still something to cheer about. The stock markets are on a tear. "The major indexes cruised to new all-time highs more times than one can count in 2014, and with minimal volatility," said Ben Warwick, contributing editor of quantitative equity strategies for Searching for Alpha in a recent blog. Some analysts say valuations are not overheated, and the upward movement could bring the Dow Jones to 18,000 and the S&P 500 to at least 2,250. Different asset classes, of course, have produced different returns so far in 2014.

6 Here's a look at the five top-performing categories within the equity universe and some of the associated ETFs, several of which have topped the results of their respective indexes. Value Plays The Russell 1000 Value Index produced the top index performance in the first six months of the year, according to Searching for Alpha: 8.3%. The index measures the performance of the large-cap value segment of the U.S. equity universe, meaning those with lower price-to-book ratios and lower expected growth values. Major holdings in the index are Exxon, General Electric, Johnson & Johnson, Chevron, Wells Fargo (WFC), Berkshire Hathaway, Procter & Gamble, JPMorgan (JPM), Pfizer and AT&T. In May, some of the group's best performers were T-Mobile, St. Joe Co. and Electronic Arts. ETFs that track the index include the ishares Russell 1000 Value ETF (IWD). Some other popular large-cap value products are the Vanguard Value ETF (VTV), Schwab U.S. Large Cap Value ETF (SCHV) and the ishares Russell Top 200 Value (IWX). Russell 1000 Value ETF is up nearly 9% for the past six months, while Russell Top 200 Value is close behind at 8%. VTV has improved about 7.5%, while SCHV is trailing at 6.5%. Microsoft is a prominent S&P 500 holding. (Photo: AP) Power of the S&P The S&P 500 is on a tear, topping 1,981 on Monday morning. The index is up 7.4% year to date. The index recently added Martin Marietta Materials and booted US Steel. It includes many of the members of the Russell 1000 as its largest components (like Exxon, General Electric, J&J, Chevron, Wells Fargo, Berkshire Hathaway, P&G and JPMorgan). But Apple and Microsoft are also prominent on its constituent list. ETFs tracking the S&P 500 are the SPDR S&P 500 (SPY) and ishares Core S&P 500 (IVV), and their performance is on par with the index. Related ETFs that are outperforming it include the PowerShares S&P 500 High Beta Portfolio (SPHB) at about 10%, the Guggenheim S&P 500 Equal Weight ETF (RSP) at 8%, and the PowerShares S&P Low Volatility Portfolio (SPLV) at 7.5%. The PowerShares S&P 500 High Quality Portfolio (SPHQ) is not keeping up, though, at roughly 5%. Good Growth

7 The Russell 1000 Growth Index is trailing its value-focused counterpart, but still produced a return of 6.3% in the first six months of the year. This large-cap index includes companies with higher price-to-book ratios and higher forecasted growth values than their peers. Its largest constituents are Apple, Microsoft, Verizon, IBM, Coca-Cola, Google, Philip Morris, Oracle and Qualcomm. In May, some of its best-performing members were Hillshire Brands, St. Joe, Netflix, Rackspace, Electronic Arts, Cheniere Energy and TripAdvisor. The ishares Russell 1000 Growth ETF (IWF) is performing on par with the index, and Vanguard Mega Cap 300 Growth ETF (MGK) is keeping pace with it. Outperforming these ETFs are the ishares S&P 500 Growth ETF (IVW) and the Schwab US Large Cap Growth ETF (SCHG) at about 8% and 9% returns, respectively. Tech Time High-tech firms are having a good 2014 with a sector return of about 7.3% (including reinvested dividends), analysts say. The NASDAQ Composite, according to Searching for Alpha, is up 6.2% in the first six months of This also tops the performance of the financial sector's 4% return year to date. The PowerShares QQQ ETF (QQQ) tracks the 100 largest companies listed on Nasdaq and excludes financial firms; it is up nearly 9%. The First Trust Nasdaq 100 Equal Weighted ETF (QQEW) is performing at this level as well. The PowerShares Buyback Achievers ETF (PKW), which tracks the Nasdaq index of the same name, is not keeping up, with returns of about 6% in early The MSCI EAFE Index covers Europe, Australia and the Far East (Photo: AP) EAFE Exuberance The MSCI EAFE Index - covering Europe, Australia and the Far East - rose about 5% in first half of the year. It captures large-cap and mid-cap stocks across the world's developed markets countries, excluding multinational companies based in the U.S. and Canada. Of its roughly 900 constituents, the top 10 holdings (as of May) were Nestle, Roche, Novartis, HSBC, BP, Toyota, Shell, Total, GlaxoSmithKline and Sanofi. By country, its main holdings had their headquarters in the United Kingdom, Japan, France, Germany and Switzerland.

8 In 2013, the EAFE index improved about 23%. It was up roughly 4% as of May. The ishares EAFE ETF (EFA) and the ishares EAFE Value ETF (EFV) are both trading up about 4.5% so far in 2014, slightly behind the index. The ishares Core EAFE ETF (IEFA) and the ishares EAFE Growth ETF (EFG), though, are keeping up with the index and have improved about 5% in the first half. 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 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 preregister by to attend this program, in order for the country club to provide appropriate seating arrangements. Also, indicate if you plan to have dinner. 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 certainly invited to participate in the buffet which is an additional $15 (which makes the total $25 for the meeting AND the dinner.) JUL 17, PM Agenda: S&P LONG/SHORT - Bruce Richards A New Dividend Portfolio from the Highest Yielding Stocks in the DOW How to Cash-in On the Natural Gas Revolution A NEW Portfolio of REITS A diversified Portfolio of GOLD and Gold Miners A New portfolio of REITS

9 19 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 You don't need to be a member of AAII to attend this meeting DINNER: $25 MEETING ONLY: $10 Reservations Requested and Appreciated =================================================================== Louisville Users Group (LUGS) Info ============================ The next LUGS Will Meet on SATURDAY - JUL 19-10:00 AM FREE - No Reservations needed JUL 19, :00 AM AGENDA: How to mitigate the Downside risk in your portfolio while participating in the Upside o S&P LONG/SHORT - Bruce Richards o A New Dividend Portfolio from the Highest Yielding Stocks in the DOW o A NEW Portfolio of REITS o A NEW Portfolio of GOLD ETFs and MINERS. o 19 Stock and Bond Indicators to Help You Determine "Where We Are" o The "Holy Grail" Stock Portfolio Using VectorVest Rules - UPDATED o Developing a new Watchlist for Fun and Profit by NEXT Christmas 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

10 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