July 20, 2012 Greetings All: Wow! Did this month take me by surprise! Last week both Heidi and Jenny reminded me it was time to do my quarterly letter and it seems like I just did one! So… a bit late but I assure you still very timely. I want to start out this quarter with some exciting news in that Heidi’s husband was offered an incredible job opportunity in Dallas, Texas and so the Lyon family has moved to Texas! Heidi was an exceptional assistant and I will miss her very much but she now has the opportunity to be a stay at home mom with her two young girls and we could not be more excited for her, her family and this new adventure in their lives. That said, an opportunity has now opened up for Jenny Singer who has been with us since day one and you know her as our office manager and receptionist. When Heidi began a bit over two years ago, we offered her position initially to Jenny first but at the time Jenny still had two children at home and in school and it was not the right time for her. Now the time is right and we are very pleased to have Jenny accept our Sales Assistant position. Jenny is an extremely organized person who focuses daily on creating a positive work environment for all of our clients. She takes pride in achieving personal and work oriented goals, and enjoys challenging herself while motivating and energizing others. She is regarded as extremely personable and is recognized as being a team player and an effective leader with a positive attitude. Jenny has two wonderful children, her son Ryan age 20 and her daughter, Katelyn age 17. Okay…here it is. The markets both domestic and internationally still can not bolster much stability and confidence. Thus, continue a sideways aspect. Europe is still having tremendous difficulty doing what it says it is going to do and in the past quarter we have added Spain to our list of countries in trouble – maybe not added but they have stepped into the spotlight now asking for help. Some perspective here as we look forward…During the financial crisis of 2008/2009 it was said that all things “America” would be fixed in a projected 10 year time frame; that was kind of an average. We are now in year 4 of that 10 and it appears that with the progress made so far, we probably will need another 4-6 years [not to mention better politics] to regain our economic competence. The same is being said now for Europe. Many do not feel that Europe economics and the Euro can survive under the current socio-political-economic framework and it is felt that there will be many changes realized within the European Union but it too will take about 10 years to realign, readjust and rebuild. However, at the end of the day the jist is the same for both the USA and Europe…both countries will survive, rebuild, grow and become viable once again. That said, we as investors might be better suited to accept the volatility that will be present, maintain our investment plan but focus on investments with an acceptable level of yield based upon your specific needs so that you receive dividends, interest or both along the way. One of the economic focal points presently is the labor numbers, the lack of new jobs and the fact that unemployment still hovers above 8% (USDL report of July 6, 2012). I wish I had some answers to this but I do not. One reason is the numbers are so convoluted. They come from several areas and the methods of measurement are not understood I am sure, by those that do the counting, let alone you or me. That said, we are seeing jobs created; just not as many as are expected. Who is doing the expecting? Are the expectations unreasonable giving our present state of affairs? All I know is that jobs are being created even if it is only one. Why are we not focusing upon that? Another economic issue is spending and again the reports are mixed. The consumer is spending, you and I are spending, but, never to the likes of those doing the monitoring. Maybe we are not spending as much as we were before 2008, but we have become more protective in managing our money and we (society) are paying down debt; the latter being the primary reason spending is slow. But…Isn’t that good? The American people are on a path to being more fiscally sound and that in and of itself should be great news and a role model for our political machine! Then there are the arguments of inflation and interest (the cost of money). Not sure why there are arguments as inflation is not present and the cost of money is the cheapest I think anyone can remember. The media needs to leave this one alone and focus on more important issues that presently have merit and need. The take away to these three issues, labor, spending, Inflation and interest is that in order for the media to justify the TV/Radio/DVD sales, etc., they must twist, spin and sensationalize anything and everything when in fact, it is fairly unexciting. Again, the “headline” hype is continuing to create an excess of fear to the, what I call, normal uncertainty that exists today. Now don’t get me wrong, things are not perfect or even close, but we are working through the issues, people are working, houses are being built and sold, computers are being purchased, movies are being watched and meals are being served at very busy restaurants. So with this understanding of: • The US economy is improving just slower than expected. • Europe is a mess, will continue to be a drag on all global economies but will in time work itself out successfully. • It is election year and regardless of the election outcome we are still going to be dealing with the same issues that presently exist; a new president will not make the problems go away overnight. • The people of the world want to be successful in life and business and are not going to lay down and quit trying to build something better for themselves and their families – what we need to see is politics get out of the way and create better economic efficiencies. [Martin’s optimism for sure] …I continue my client specific focus, assessing your individual situation based upon that of the markets and economy, attempt to maintain a consistent investment plan for my clients and constantly seek to find the most suitable investment to fit your needs. Those investments are out there, we just have to find the ones that make the most sense for your asset allocation and risk tolerance. I have talked with many of you and your confidence in me and my work is much appreciated. If you find that you have more questions, please do not hesitate to contact me. Finally, we will be hiring a new Office Administrative Assistant to begin to fill the shoes that Jenny is leaving behind so hopefully in very short order we will have another great announcement letting you know about the new addition to our Legacy Wealth family. I thank you for your continued business and further appreciate all the great referrals that you have been introducing me too. Have a great quarter and I will continue my written evaluation of all things financial in October! Regards, Martin Martin McClellan 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. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. The views expressed do not necessarily reflect the views held by LPL Financial.