What's New? Feddern Financial Consulting Group TODAYS NEWS: Pending Home Sales Fall 1.3%

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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. NASDAQ Glitch Hits ETF Market AAII/LUG's Group Info TODAYS NEWS: Pending Home Sales Fall 1.3% U.S. Housing Recovery Loses a Step as Pending Home Sales Fall Reuters Contracts to purchase previously owned U.S. homes fell for the second straight month in July, a sign that rising mortgage rates are taking the steam out of America's

2 housing market recovery. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "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 Exclusive: T. Rowe bans some American Airlines employees from fund trading Here is an excellent example of WHY we at Feddern Financial Consulting Group have constructed our "Ultimate 401-k Plan." It is completely focused on the PARTICIPANT, and there are NO PENALTIES ascribed to anyone...ever for trying to actively manage the risks in their portfolio.

3 Our 40 no-load index funds from Direxion, Rydex, and ProFunds are specifically designed to allow participants to move their investments ON A DAILY BASIS if they choose. They can also can choose to have us "Do it for Them." This is where we will manage their account for them using one of our FIVE risk profiles. Our custodian is Lincoln Trust in Denver, CO. All of our recommendations are published DAILY on our website - We certainly would not treat the American Airlines employees with this type of arrogance! Contact us for a free Login and Password NEW YORK (Reuters) - T. Rowe Price Group has permanently banned about 1,300 American Airlines employees from trading among its funds in their 401(k) retirement plans, a rare move to curb "collective" trading by subscribers to an investment newsletter. About 800 additional employees have received warning letters about their trading patterns, according to sources at the airline and at JPMorgan Chase & Co, administrator of the retirement plan. The ban, confirmed by the airline and the fund company in response to a Reuters inquiry, follows a period of several years in which T. Rowe Price imposed a series of temporary trading restrictions on some subscribers to the EZTracker LLC newsletter for American Airlines employees. The newsletter suggests monthly mutual fund trades to more than 2,000 subscribers who invest in the company's defined contribution plan known as $uper $aver 401(k). The plan has more than 80,000 participants. Investment newsletter veterans said a permanent ban is highly unusual, and raises questions about why a giant like T. Rowe Price, which manages $614 billion, would single

4 out activities of a small group of people. The controversy comes as workers' anxiety about managing their own retirement investments grows while employers close company-paid and professionally managed pension plans. "It's like taking a chainsaw to an ingrown toenail," said Dan Wiener, publisher of "Independent Advisor," a newsletter for investors in Vanguard funds. Wiener said he knew of no similar cases. T. Rowe Price spokesman Bill Benintende said collective trading can disrupt portfolio managers' strategies and raise costs for long-term investors. "In limited situations" the company's funds restrict investors who significantly alter their holdings on the advice of a newsletter, he wrote in an ed statement confirming the ban. He declined to name the newsletter or discuss other specifics. PILOT COMPLAINTS The publishers of EZTracker's newsletter for American Airlines employees said many of its subscribers were banned. They did not know if other airline employees were also affected. An American Airlines spokesman said the company in its role as plan sponsor has acted appropriately. Despite the ban, all plan participants still can put new payroll deductions into T. Rowe Price's funds or cash out of them, he emphasized. They cannot trade among the four T. Rowe Price funds in the plan, which has about 26 other investment choices. Still, the restriction is rankling employees at a sensitive time. Two weeks ago, the U.S. Justice Department sued to block the merger of American Airlines' bankrupt parent AMR Corp with U.S. Airways Group. Last month, American distributed about $3.5 billion to pilots from a company-funded and professionally managed pension plan it had shuttered. To avoid tax penalties, most pilots are reinvesting the money in 401(k) plans and other retirement vehicles. "They have kept me from some of the better performing funds," William Simons, an American Airlines pilot wrote to Reuters in an . "We thought we were doing everything legally, yet we were punished."

5 HIGH-YIELD TRIGGER? T. Rowe Price covered itself by amending in 2010 the prospectuses of its funds in the American plan, according to some lawyers who declined to be named because they work with the firm. The new language permits each fund at its discretion to reject trades that "could dilute the value of the fund's shares, including trading by shareholders acting collectively (e.g., following the advice of a newsletter)." EZTracker's co-publishers Paul Burger and former American Airlines captain Michael DiBerardino call the restrictions anti-competitive and vague. "We are being held to a standard that's not being applied to other newsletters, publications or investment advisers," Burger said. The permanent ban was probably triggered by EZTracker's April 1 suggestion that employees sell T. Rowe's High Yield Fund, which it had suggested buying five months earlier, he said in an interview. EZTracker has recommended exiting T. Rowe Price funds in American's 401(k) plan six times since mid-2010 after a holding period of less than a year, Burger said. The recommendations trigger a rush of buys and sells in the days following the end-of-month release of the newsletter, Burger acknowledges. He voiced doubts that those would be significant enough to affect the performance of such large funds. The other funds in the plan are T. Rowe's Science & Technology, MidCap Growth and New Horizons funds. Since 2010, T. Rowe Price sent a series of warning letters and outright one-year trading bans to several subscribers, some of whom complained to EZTracker. SEC COMPLAINT In May 2012, EZTracker filed a complaint with the U.S. Securities and Exchange Commission, saying that the then-temporary restrictions were "discriminatory and anticompetitive." It said it had received complaints from hundreds of subscribers, claiming they were injured by the bans. SEC spokesman John Nester declined to comment on the status of the complaint. The T. Rowe Price letters were sent through JPMorgan, which also markets a managed

6 account service called JPMorgan Personal Asset Manager to participants in many of the plans it administers. EZ Tracker charges $84.95 a year for its newsletter while JPMorgan charges an asset management fee that can result in charges of $945 for a $250,000 account. Unlike the newsletter, which simply advises subscribers who make their own trades, the JPMorgan program makes trades on behalf of participants. Burger said he suspected JPMorgan helped orchestrate the trading bans to further its own advisory services among highly compensated airline employees. The complaint to the SEC said the bank's willingness to enforce the bans is "self-serving." "I'm sure they would like to manage the 401(k) plans of all our subscribers," Burger wrote in an . The bank dismissed allegations of conflict. "JPMorgan in its role as a plan service provider and financial intermediary for the funds has acted appropriately and as directed by the plan sponsor and the fund provider," bank spokeswoman Kristen Chambers wrote in an . "All communication to participants is plan-sanctioned, including any mention of the managed account feature." (Reporting by Jed Horowitz; editing by Linda Stern, Paritosh Bansal and Andrew Hay) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Check this website on a regular basis It's truly eye-opening. We just passed the $16 T-mark

7 AND We're closing in on $ TODAY'S 401-k Asset Allocation Changes BE AWARE: We are OUT of all fixed income (including High Yield) and even have a position in the Bond Inverse Fund. 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, and Aug 10 The next one is SEP 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

8 reviewing and analyzing them. 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 SEP 14th. This will be a standing meeting. 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 1 Risk. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Feddern Ultimate 401-k (40 No-Load Index Funds) Welcome: Anderson Law, LLC Dynamark Graphics Group No Change Nationwide Financial 401-k (34 Load-Waived Funds) WELCOME: Ahead Human Resources, Inc

9 No Change Socially Responsible Portfolio No Change OneAmerica 401-k (25 Load-Waived Funds) SELL: CIGIX (InternLC) 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 - ( ) FOREIGN STOCKS- SELL ( ) EMERGING MARKETS - SELL ( ) GOLD - BUY ( ) (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

10 what to own, when, AND how much...and most importantly WHEN NOT TO OWN!!!!) See the newest annual report from kiplinger on the best 401-k funds: CLICK HERE NASDAQ Glitch Hits ETF Market Here is the ZACKs analysis of what happened last week After a series of trading glitches impacting major U.S. exchanges, it appears as though the NASDAQ was the next in line for issues. The all-electronic trading platform experienced a huge technical problem which kept their market shutdown for roughly three hours in Thursday trading. The shutdown hit the roughly 2,700 stocks that are traded on the platform, including a number of technology behemoths such as Apple (AAPL), Facebook (FB), and Google (GOOG). The halt also impacted options trading, leaving investors completely in the dark on updates prices for much of the session (see 3 Tech ETFs Still Going Strong). Trading was finally restored in the last half hour or so of trading, and fortunately, many shares move higher after the shutdown. NASDAQ's own shares, NDAQ, weren't as lucky as investors sold off the company, pushing down shares by 3.4% following the issues. In fact, NDAQ actually saw volume that was above average for the day, even with the long cutout in the middle of the session. ETF Impact The shutdown also hit a number of ETFs, as more than 100 funds trade on the Nasdaq. This includes a variety of products from a number of issuers-including several ultra-popular fundsso the impact was pretty widespread for ETF investors on the day. Below, we highlight a few of the most popular funds that were impacted by this trading blackout and how they held up

11 after service was restored: Easily the most popular-and most obviously impacted-was the PowerShares QQQ ETF (QQQ). This fund tracks the Nasdaq 100 index and generally does volume of about 30 million shares a day (see all the Large Cap ETFs). Thanks to the trading halt though, volume came in just above 16 million shares for the day, roughly half a normal session. However, prices appeared to be unaffected as QQQ finished the day up roughly 1%. Meanwhile, some leveraged counterparts for the Nasdaq 100 Index, such as TQQQ and SQQQ also were unaffected from a performance perspective. However, these two saw volumes that were roughly 50% of a normal session too (see all the Leveraged Equity ETFs here). International-focused Nasdaq-listed ETFs also saw uncertain trading in Thursday's session. This was led by two relatively popular ishares products, ACWI and ACWX. Both of these products saw volume that was far less than normal with big gaps in between bursts of volume throughout the day. Finally, arguably one of the most popular sector focused ETFs trading on the Nasdaq, IBB, also saw a plunge in trading volume for the day. The popular ETF which has roughly $3.7 billion in assets saw volume that was roughly half a normal day, though other products like BBH did see some sluggish volume thanks to a large number of underlying securities trading on the Nasdaq (see 3 Impressive Biotech ETFs Crushing the Market). NDAQ Impact Investors should also note that NDAQ takes a decent sized chunk of assets in the ishares US Broker Dealers ETF (IAI). For this fund, NDAQ makes up roughly 4.3% of assets, making it important but not vital for the ETF's overall return. Based on this, it is safe to say that NDAQ's slump didn't have a very big impact on the rest of the industry, though the trend is certainly troubling. Investors should definitely keep an eye on this space going forward though, as a series of major issues with the exchanges could result in new rules or regulation, possibly spurring a further sell-off in the future for this ETF.

12 AAII/LUG's Group Info ============================ AAII will Meet on THURSDAY at 6:00 PM at the AUDUBON CC (note the change in day AND location) 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 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

13 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 `````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````` SEP INSURANCE: How Are You Positioned? - GUEST SPEAKER: Bob Mayhugh "How Much DO You REALLY Know About Insurance" Take the test with us!

14 ---Fixed Annuities: A Key to Building Retirement Planning Stock and Bond Indicators to Help You Determine "Where We Are" ---The REAL reason that Gold Tanked and WHO was responsible (You Won't Believe It) ---The "Holy Grail" Stock Portfolio Using VectorVest Rules - UPDATED ---Observing our Own Watchlist for Fun and Profit by Christmas - UPDATED OCT 17 - Speaker: TBA AND Stock and Bond Indicators to Help You Determine "Where We Are" ---The REAL reason that Gold Tanked and WHO was

15 responsible (You Won't Believe It) ---The "Holy Grail" Stock Portfolio Using VectorVest Rules - UPDATED ---Observing our Own Watchlist for Fun and Profit by Christmas - UPDATED Reservations Needed and Appreciated (502) Otto Office (502) Otto Cell otto@fedderngroup.com 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 - SEP 14-10:00 AM

16 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 Quick Links... Visit our Website Otto G. Feddern Feddern Financial Consulting Group 603 North Shore Drive Suite 102 Jeffersonville, IN (502) Office (502) Cell otto@fedderngroup.com Forward This was sent to otto@fedderngroup.com by otto@fedderngroup.com

17 Update Profile/ Address Instant removal with SafeUnsubscribe Privacy Policy. Feddern Financial Consulting Group 603 north shore drive suite 102 jeffersonville IN 47130