What's New? Feddern Financial Consulting Group TODAY'S NEWS: The markets rebounded Friday after an initial wave of selling early on.

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1 Subject: Feddern Financial Consulting Group Newsletter What's New? Feddern Financial Consulting Group TODAY'S NEWS: The markets rebounded Friday after an initial wave of selling early on. The rebound was expected after the aggressive selling took place the last few days from the highs. Fitting the the pattern as far reaction from highs, traders eagerly took profit Friday. Value seekers also jumped in to find short term gains. While we could see a rebound Monday, I do think sellers establish themselves early on in the week. I can see continual progression to the downside, as we have been bouncing around a key technical level in the SPX/SPY. If we have an implied open to the downside Monday, look for a fast drop early on, and a possible extension leading into the early half of the week. In this issue TODAY'S 401-k Asset Allocation Changes. Extremely Hilarious!!! AAII/LUG's Group Info ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

2 PROFIT TODAY'S 401-k Asset Allocation Changes PLAN NAME BUY SELL LINK TO DETAILS and the Five Profiles FFCG-Ultimate: Dynamark Anderson Law ryvix,rytixhttp:// Nationwide: Ahead HR Socially Responsible: ryvix,rytixhttp:// 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 - SELL ( ) FOREIGN STOCKS- BUY ( ) EMERGING MARKETS - SELL ( ) GOLD - BUY ( ) The following market signal changes were issued by VectorVest as of: Stock Market Call -

3 SELL: ( ) The "Holy Grail" is in CASH as of the above date. The Secret to Making Money in the Stock Market - The VectorVest Methodology There's a battle raging on Wall Street. The Bulls are looking for a market bottom and the Bears are saying the selling will continue. Both camps are making their point with a plethora of facts, fiction and fluff. How can we cut through the flack and focus on what's really going to happen? Three Powerful Forces Driving the Market Astute investors know three powerful forces drive the stock market. These forces are known to everyone, but are often misunderstood. They are related, but independent. They are measurable, but controversial. They convey the affects of all that happens, and ultimately determine the fate of the market. 1. Corporate Earnings When a major event such as an assassination, earthquake, or international financial crisis occurs, investors instinctively speculate on whether the event will help or hurt the stocks they own. If the event seems likely to help corporate earnings, prices rise. Conversely, if the news is perceived to be harmful, prices fall. 2. Inflation The bug-a-boo of a strong economy is inflation. Inflation, of course, causes raw material, labor and service costs to increase. Unless a company increases productivity and raises prices, profit margins narrow and earnings go down. Rising inflation rates ultimately push stock prices down. It not only lessens the value of financial assets, it erodes the purchasing power of consumers. Left unchecked, inflation destroys monetary stability and leads to a weak economy. 3. Interest Rates The Federal Reserve is charged with the responsibility of maintaining monetary stability. It fulfills this task by controlling the money supply. When the Fed sees inflation increasing, it tightens the money supply and interest rates go up. Ironically, higher interest rates raise costs. It stifles investment, weakens the economy, hurts corporate earnings and eventually leads to a Bear market. Interest rates are perhaps the most powerful force driving the stock market. In summary, prices rise when earnings go up. Prices fall when inflation rises and when interest rates increase. So how does the individual investor take advantage of this knowledge? You could spend hours pouring over the financials in the Wall Street Journal. Then spend additional hours deciphering the quarterly reports of companies you find promising...or you could simply check with us OR with VectorVest

4 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 FFCG "Ultimate 401-k" platform custodied at Lincoln Trust Trading History: BUY: SSO or ULPIX SELL/CloseOut: for a GAIN of 4.55% BUY: SDS or $ SELL/CloseOut: for a LOSS of.0174% BUY:SSO or ULPIX SELL/Close Out: SSO/ULPIX GAIN of $.25 or.0024% BUY SDS or SELL/CloseOut: for a LOSS of $.33 or.012% BUY SSO or SELL/CloseOut: SS0 LOSS $2.03 or.0192% BUY: SDS or SELL/CloseOut: LOSS of $.95 or.032% BUY: SSO or SELL/CloseOut: LOSS of $1.56 or.015% BUY: SDS or SELL/CloseOut: LOSS of $.44 or 0.015% BUY: SDS or SELL/CloseOut: $28.52 LOSS of $.36 or.002% BUY:

5 SELL/CloseOut: PROFIT of $.90 or.009% BUY $28.20 Extremely Hilarious! As most of you know, I am very critical of the speech of many teenage girls (and year old especially women who wish they were still teenagers) and their embracing of the "Great Northern City Vowel Migration") of the English Language. The last time the vowel sounds were systematically changed was when we changed out of Old English hundreds of years ago! But here is what the Brits and their European counterparts are proposing to do...are we headed down the same path? This is compliments of Bill Kent in Florida The European Commission has just announced an agreement whereby English will be the official language of the European Union rather than German, which was the other possibility. As part of the negotiations, the British Government conceded that English spelling had some room for improvement and has accepted a 5-year phase-in plan that would become known as "Euro-English". In the first year, "s" will replace the soft "c". Sertainly, this will make the sivil servants jump with joy. The hard "c" will be dropped in favour of "k". This should klear up konfusion, and keyboards kan have one less letter. There will be growing publik enthusiasm in the sekond year when the troublesome "ph" will be replaced with "f". This will make words like fotograf 20% shorter. In the 3rd year, publik akseptanse of the new spelling kan be expekted to reach the stage where! more komplikated changes are possible. Governments will enkourage the removal of double letters which have always ben a deterent to akurate speling. Also, al wil agre that the horibl mes of the silent "e" in the languag is disgrasful and it should go away.

6 By the 4th yer people wil be reseptiv to steps such as replasing "th" with "z" and "w" with "v". During ze fifz yer, ze unesesary "o" kan be dropd from vords kontaining "ou" and after ziz fifz yer, ve vil hav a reil sensibl riten styl. Zer vil be no mor trubl or difikultis and evrivun vil find it ezi tu understand ech oza. Ze drem of a united urop vil finali kum tru. Und efter ze fifz yer, ve vil al be speking German like zey vunted in ze forst plas. 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 Otto@fedderngroup.com 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.) JUN 19, PM Agenda: S&P LONG/SHORT - Bruce Richards A new look at Annuities and their benefits and drawbacks - bring ALL of your questions! A New Dividend Portfolio from the Highest Yielding Stocks in the DOW

7 A NEW Portfolio of REITS 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 - JUN 21-10:00 AM JUN 21, :00 AM FREE - No Reservations needed 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 look at Annuities and their benefits and drawbacks - bring ALL of your questions! o A New Dividend Portfolio from the Highest Yielding Stocks in the DOW o A NEW Portfolio of REITS 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

8 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