Mark Levy’s Economic Update – March 6, 2012 The rally in the stock market since the beginning of the year has been an impressive one. We have become what market experts call, “over bought” and some decline or rest activity is appropriate to provide the “pause that refreshes” in a bull market. Today we are seeing a pause (the Dow is currently down 170 points to 12,793) due to renewed concerns in Greece along with European recession possibilities and news of China reducing its growth forecast. Bull markets climb walls of worry and today’s decline may be a part of a period where the wall of worry is being rebuilt. Oil prices have been stubbornly high. A break through on geopolitical talks with Iran or OPEC releasing additional supply and/or President Obama releasing more oil from the Strategic Petroleum Reserves (SPR) could be positive catalysts to price stabilization. We have our eyes closely on these details and we think these possibilities can have a dramatic effect on energy prices in the United States and global economies. In the bigger picture, there is good news: • Unusually warm weather has been positively impacting the United States Economy. • There has been a little less rancor of late and a little more cooperation in Washington compared to last summer. • The job market has been improving as companies have reached their limits on productivity gains. • A rebound in global economic activity following the global supply chain disruptions that resulted from the Japanese earthquake and tsunami in March 2011. So, between the current good/bad news, we expect the markets to rest for the next few months. Pockets of decline may offer some opportunities to reallocate some assets. The upcoming Presidential race is becoming more and more in the spot light and there is evidence from the Gallup Service that the approval rating in March has determined November Presidential elections. This should prove to be an interesting month. The tax dead line is April 17th this year and our 1099’s have finally gone out to you. We appreciate your patience in waiting longer for them this year. If you or your tax preparers need any additional information, do not hesitate to call us. – Mark The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. * Stock investing involves risk including loss of principal. The Dow Jones Industrial Average is an unmanaged index and cannot be invested into directly. Past performance is no guarantee of future results. LPL Financial Weekly Economic Commentary and LPL Financial Weekly Market Commentary dated 03/05/2012.