Keidan Financial Consultants, LLC

DOWNTOWN COLUMBUS CONSTRUCTION

Please be aware that there is road construction going on in downtown Columbus.  Click on the following link to view open/closed ramps and exits.

http://www.dot.state.oh.us/projects/71670/Pages/MapsandUpdates.aspx

Bob’s Blasts

April 2012

Stocks have surged in the first quarter, continuing the strong run that began in the fourth quarter of last year.  In the first quarter, U.S. stocks gained about 12 percent with foreign stock slightly higher.   Positive factors included the successful Greek debt restructuring, positive U.S. economic data points, results of the Federal Reserve’s latest banking stress tests and a slowdown in the Chinese inflation rate.  It appears that people are feeling better about the economy and in the recent months there have been things to feel good about.  With all the positive news lately why are investors still cautious?

Do all the positives that helped drive recent performance reflect the likelihood that the scariest risks are off the table and things are “all clear”?  Unfortunately, there are still many issues on the table that need to be addressed.  The European Central Bank provided liquidity and Greek debt restructuring may have taken the disorderly default risk and European debt contagion risk off the table for now; however, it does nothing to solve the fundamental structural problems of the Euro zone.  Also fiscal problems still exist in the United States.  Under current law on January 1, 2013, we could see the expiration of the Bush tax cuts, temporary payroll tax cut, extended unemployment benefits and $1.2 trillion of automatic spending cuts which are scheduled to kick in.  It seems unlikely that this would play out without any modifications, but the risk does remain, especially when political dysfunction, in an election year, remains high.

Overall things have improved, but we are still in an environment with significant macro risks that are difficult to predict.  Heightened periods of volatility can be expected to continue as investors look for direction.  Investors should resist the temptation to increase risk just because it “feels good” after a strong run.  Within our strategies and allocations, we will be adding risk only when our research determines it is prudent to do so.  We are seeking managers that may be able to generate better returns over a longer period of time while attempting to limit the client’s risk.  Sticking with a long term plan and managing risk will be crucial in navigating through these volatile markets.  We will continue to work diligently to look for opportunities that may help minimize downside risk relative to the market with potential growth.

As always, if you have any questions or will need to take a planned withdrawal from your portfolio, please let us know.  Wishing you a wonderful spring!

This material is meant for general illustration and/or informational purposes only.  Views expressed in this newsletter may not reflect the views of Royal Alliance Associates, Inc.  It is our goal to help investors by identifying changing market conditions.  However, investors should be aware that no financial advisor can accurately predict all of the changes that may occur in the market. Foreign investments involve special risks including greater economic, political and currency fluctuation risks, which may be even greater in emerging markets. This article contains forward looking statements and projections. Past performance is no guarantee of future results.  If you do not wish to receive marketing emails from this sender, please reply to this email with the word REMOVE in the subject line.