Carnegie Wealth Management
Investment Real Estate Division

Page 7 Weekly Update

Weekly Market Update

by Platinum Marketing Advisors, LLC

Week of September 27, 2010

The Markets:

The recession is over and it ended 15 months ago. Surprised? According to the National Bureau of Economic Research, an independent group of economists, it's true. In a statement released on Monday, September 20th, the bureau announced that the recession technically ended back in June 2009. As many economists had expected, this official end date makes the most recent downturn the longest and deepest for the U.S. economy since the Great Depression.

So does this mean that everything is back to normal? I think most of us know better than that. According to a new CNN/Opinion Research Corporation poll, 74% of Americans believe the economy is still in a recession. Even the bureau took care to mention that the end of the recession, by definition, is only the period until the economy reaches its low point - not necessarily a return to its previous vitality. They said, "In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity. Rather, the committee determined only that the recession ended and a recovery began in that month."

So if the recovery began back in June 2009, why do most Americans think we're still in a recession? Because to many of them, it feels like it. Often, when referencing events that occur in the economy, the words "official" or "technical" are used. Incidentally, you can find both those words in the first paragraph of this commentary. But as we all know, just because something is "technically" true doesn't mean it's practically true. Commenting on this, President Barack Obama said last week, "Obviously, for the millions of people who are still out of work, people who have seen their home values decline, people who are struggling to pay the bills day to day, [the recession is] still very real for them." Whether or not you agree with Mr. Obama's policies, it is easy to see that this statement has some merit. And as long as Americans feel that we are in a recession, the pace of the recovery will be challenged by lower spending, slower hiring, and the like.

On the bright side, the same CNN/Opinion Research Corporation poll found that the percentage of Americans who say the country is in a recession has dropped 13 points since August - a significant spike in sentiment. The stock market is also looking good for the moment, as Friday closed out the week with a surge that put the Dow Jones Industrial Average on track for its best September in 71 years. Even if the recovery isn't moving as fast as everyone would like, "slow and steady" seems to be its mantra.

Key things to watch this week:
Tuesday - Consumer Confidence
Thursday - GDP, Jobless Claims, Chicago PMI
Friday - Motor Vehicle Sales, Personal Income and Outlays, Consumer Sentiment, ISM Manufacturing Index, Construction Spending

Performance

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, Google Finance, Barron's, djindexes.com, MSCI Barra. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not available.

Headlines

Silver climbed to its highest price since 1980 last week, as the dollar's slump boosted demand for precious metals as alternative assets. Gold also climbed to another record, topping $1,300 an ounce.

The economy expanded at a 1.6% annual rate in the second quarter, and will probably finish the current quarter at a 1.4% annual rate, according to estimates by St. Louis forecasting firm Macroeconomic Advisers.

Legislation pressing China to raise the value of its currency is set for a vote in the U.S. House next week, as Republicans joined Democrats in expressing frustration that the Yuan is appreciating too slowly.

Nearly 11% of mortgages modified under the government's Home Affordable Modification Program, known as HAMP, have fallen two months behind in payments, according to a banking regulators' report issued Friday.

In his first comments on Iranian President Mahmoud Ahmadinejad's statement that the Sept. 11 terrorist attacks may have been orchestrated to bolster the U.S. economy and "save the Zionist regime," President Barack Obama told BBC Persian that "for him to make a statement like that was inexcusable. It was offensive, it was hateful," Obama said, according to an excerpt of the interview released by the White House.

"Age is an issue of mind over matter. If you don't mind ... it doesn't matter."
- Mark Twain

Cheesy Black Bean Quesadilla Triangles

From: MorningStar Farms

Ingredients:
2 Spicy Black Bean Veggie Burgers
1/2 cup salsa
1/2 cup shredded Cheddar cheese or Monterey Jack cheese (2 ounces)
1/4 cup shredded Pepper Jack cheese (1 ounce)
2 teaspoons salt-free Southwest or Mexican seasoning
10 (8-inch) flour tortillas
1 tablespoon butter or margarine, melted
2 1/2 cups shredded lettuce (optional)
2 tablespoons finely chopped red or green bell pepper

Directions:
1. In medium bowl toss together MorningStar Farms Spicy Black Bean Veggie Burgers, salsa, Cheddar cheese, Pepper Jack cheese and seasoning.

2. Use pizza cutter to cut tortillas into 7-inch triangles. (Save trimmed edges for another use.)

3. Place about 2 tablespoons burger mixture in center of each triangle. Fold corners of large triangles over filling, completely enclosing filling and making small triangles. Secure with toothpicks. Place on baking sheet, toothpick side up. Brush with butter. Bake at 375 degrees F for 9 to 12 minutes or until beginning to brown on top.

4. Arrange on top of shredded lettuce. Sprinkle with bell pepper. Serve immediately.

What is Your Last "Swing Thought"?

"I knew it! I knew I was gonna do that!" It's a confession heard on every golf course, every day. Amateurs are often quick to admit that they knew what mistake they were going to make in advance. Prophets they are not; negative thinkers perhaps. And the worst time to have a negative thought is the instant before swinging.

At address, when negative thoughts creep into your mind, step back and regroup. Break the chain of negative thinking by recalling good shots you've hit in similar situations. Don't swing until you can confidently visualize a perfect shot.

Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Sources:
Marketwatch
The Wall Street Journal Online
Barrons
CNN Money
http://www.bloomberg.com/news/2010-09-24/silver-climbs-to-30-year-high-beating-gold-with-its-26-advance-this-year.html
http://www.bloomberg.com/news/2010-09-24/bernanke-says-economy-recovering-more-slowly-than-policy-makers-would-like.html
http://www.bloomberg.com/news/2010-09-24/china-currency-measure-heads-for-house-vote-after-panel-approval.html
http://money.cnn.com/2010/09/24/news/economy/Mortgage_modifications_redefaults/index.htm
http://www.cnn.com/2010/POLITICS/09/26/economy.poll/index.html
http://topics.nytimes.com/top/reference/timestopics/subjects/r/recession_and_depression/index.html?inline=nyt-classifier

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe,
Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

Steve Arnold
Carnegie Wealth Management
9699 Bay Harbor Circle #203
Fort Myers, FL 33919

sarnold@omni1031.com

Carnegie Wealth Management is a Branch Office of OMNI Brokerage, Inc. All Securities offered through OMNI Brokerage, Inc. Member FINRA/SIPC.

Weekly Market Update

by Platinum Marketing Advisors, LLC
Week of September 20, 2010

The Markets:

In his famous "irrational exuberance" speech on December 5, 1996, then Federal Reserve chairman Alan Greenspan posed a rhetorical question: "How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions?" With those words, he underscored the influence that emotions can have on financial assets.

Thinking along these lines, it is interesting to note that if there is such a thing as "irrational exuberance", the opposite must also exist. Let's call this converse emotion "irrational negativity". Is there such a thing? The ABC News Consumer Comfort Index is a rolling average based on telephone interviews with 1,000 randomly selected adults over the previous four-week period. Last week, 89% rated the economy negatively, while only 54% rated their own finances negatively. Translation: People think we are worse off than we actually are (irrational negativity).

For the year, the S&P 500 is up 0.94%, the Dow is up 1.72%, and the Nasdaq is up 2.05%. Company earnings are strong, and stocks have moved steadily higher in September thanks to a series of encouraging signals on the economy. Despite this fact, gold set another record last week, and Treasury prices edged higher in a sign that investors remain cautious.

Will people eventually come around? There are reasons to believe they will. One good sign is that Americans are spending more. The U.S. Census Bureau announced Tuesday that consumer spending rose 0.4% from July to August, and 3.6% from 12 months ago, with retail sales up 0.5% and 3.7% respectively. This was the 10th month in a row of year-over-year growth in consumer spending estimates from the Census Bureau, following 14 months of year-over-year declines. All told, Americans spent $363.7 billion at retailers in August - the most since April. Since consumer spending accounts for more than two-thirds of the U.S. economy, this provides yet another silver lining in what many still view as confusing times.

Key things to watch this week:
Monday - Housing Market Index
Tuesday - Housing Starts, FOMC Meeting Announcement
Thursday - Jobless Claims, Existing Home Sales, Leading Indicators
Friday - Durable Goods Orders, New Home Sales

Performance

Headlines:

President Obama named Harvard law professor Elizabeth Warren a special adviser Friday and tasked her with setting up an agency to look out for consumers in their dealings with banks, mortgage companies and other financial institutions. Calling Warren "one of the country's fiercest advocates for the middle class," Obama said she would ensure the Consumer Financial Protection Bureau ends abusive practices.

Americans' net worth - the value of assets like homes and investments, minus debts like mortgages and credit cards - fell 2.7% last quarter, or $1.5 trillion, the Federal Reserve said Friday. That left net worth at $53.5 trillion - above the bottom hit during the recession ($48.8 trillion in the first quarter of 2009), but below the pre-recession peak of $65.8 trillion.

General Motors announced Friday that it is planning to invest $483 million and add 483 jobs to its engine plant in Spring Hill, Tenn.

The number of people with health insurance in the United States dropped for the first time in 23 years, the U.S. Census Bureau said Thursday. There were 253.6 million people with health insurance in 2009, the latest data available, down from 255.1 million a year earlier.

After months of debate and significant pressure from the White House, the Senate on Thursday passed a $42 billion bill aimed at helping small businesses. The measure is expected to create 500,000 jobs, according to a Senate summary of the bill.

"Contentment makes poor men rich; discontentment makes rich men poor."
- Benjamin Franklin

Tropical Fruit Pie

Choose your favorite fruits to top this chilled cream cheese dessert.

Ingredients:
1-1/4 cups all-purpose flour
3 tablespoons granulated sugar
1/4 teaspoon salt
6 tablespoons butter
1 egg yolk
3 to 4 tablespoons cold water
1-1/2 8-ounce package cream cheese (12 oz.), softened
2/3 cup sifted powdered sugar
1/4 cup whipping cream
1 tablespoon orange liqueur or orange juice
1 teaspoon vanilla
2 to 2-1/2 cups assorted fruits (kiwi, raspberries, papaya, strawberries, blueberries, etc.)
2 tablespoons apricot preserves
1/2 teaspoon orange liqueur or orange juice

Directions:
1. Preheat oven to 400 degree F. For pastry, in a medium bowl stir together flour, granulated sugar, and salt. Cut in butter until mixture resembles coarse crumbs. Stir in egg yolk and enough cold water to moisten. Knead gently until mixture forms a ball.

2. On a lightly floured surface roll dough to a 12-inch circle; carefully transfer to a 9-inch pie plate. Trim pastry to 1/2-inch beyond edge of pie plate. Fold under extra pastry. Crimp edge. Generously prick bottom and sides of pastry with a fork. Line pastry with a double thickness of foil. Bake 8 minutes; remove foil. Bake for 10 minutes more or until golden. Cool on a wire rack.

3. For filling, in a bowl beat cream cheese and powdered sugar until combined. Add whipping cream, the 1 tablespoon liqueur, and vanilla. Beat until combined. Spoon filling into baked pastry shell. Cover and chill 1 to 4 hours.

4. To serve, arrange fruit on top of filling. Heat preserves and 1/2 teaspoon liqueur until melted. Drizzle over pie. Makes 8 servings.

Foundation

A consistent golf swing requires a smooth tempo and good balance. Just as a house needs a solid foundation, so does a golf swing.

Practice hitting some shots with your feet close together (about six inches apart). This forces you to maintain better balance, tempo, and rhythm, and will prove effective when you go back to hitting from your normal stance.

Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Sources:
Marketwatch
The Wall Street Journal Online
Barrons
CNN Money
http://www.usatoday.com/money/economy/2010-09-17-elizabeth-warren-appointment_N.htm
http://www.usatoday.com/money/economy/2010-09-17-net-worth_N.htm
http://money.cnn.com/2010/09/17/autos/gm_spring_hill/index.htm
http://money.cnn.com/2010/09/16/news/economy/census_latest_uninsured_numbers/index.htm
http://money.cnn.com/2010/09/16/smallbusiness/small_business_jobs_bill/index.htm
http://blogs.abcnews.com/consumer_confidence/2010/09/economic-pessimism-at-a-yearlong-high.html

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

Steve Arnold
Carnegie Wealth Management
9699 Bay Harbor Circle #203
Fort Myers, FL 33919

sarnold@omni1031.com

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Carnegie Wealth Management is a Branch Office of OMNI Brokerage, Inc. All Securities offered through OMNI Brokerage, Inc. Member FINRA/SIPC.

Weekly Market Update

by Platinum Marketing Advisors, LLC
Week of August 30, 2010

The Markets:

What is traditionally Wall Street's quietest month has been about as peaceful as a crowded five-o-clock flight to Las Vegas that's serving up all-you-can-drink Red Bull. After closing below 10,000 on Thursday, the Dow dropped as low as 9,936 in early Friday trading before finally rallying 165 points (1.7%) to recapture the psychologically important 10,000 level and finally close at 10,150. The S&P 500 and the Nasdaq likewise rose 1.7% for the day. In spite of Friday's performance, each of the major indexes finished to the downside for the week - proof that the ongoing tug-of-war between strong corporate balance sheets and troubling economic indicators is still exerting an influence on the markets.

Although the media has a tendency to confuse the two, it is important to remember that the stock market and the economy are separate animals. Just because the economy is performing poorly doesn't mean the stock market will, and vice versa. That being said, what we are currently seeing is a strong tendency among investors and analysts alike to make investment decisions based largely upon how the economic indicators are reading. In part, this is due to the fact that many people are still licking their wounds from the so called Great Recession of 2007-2009. Some investors are nervous, skittish, uncertain, and in some cases even paranoid. What all this negativity creates is a reactionary market environment - one that moves in response to every new shred of economic news.

Case in point: Fed Chairman Ben Bernanke's speech on the economic outlook held Friday in Jackson Hole, Wyoming. Mr. Bernanke's remarks - the strongest yet that the Fed is ready to do what is necessary to bolster growth - sent stocks instantly higher. Although Bernanke acknowledged that the recovery is "less vigorous than we expected", he also reiterated that growth is likely to pick up in 2011. After outlining four potential options the Fed could deploy to boost the economy, he added, "The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do. The issue is instead whether, at any given juncture, the benefits of each tool, in terms of additional stimulus, outweigh the associated costs or risks of using each tool."

The Fed's strategy carries no guarantees. Even keeping short-term interest rates near zero has done little to rejuvenate the economy. The benefits of recent stimulus programs are evaporating, and Congress has failed to agree on any new major economic aid. Put simply, there are no easy options for fixing the economy. In his closing remarks Bernanke stated, "We have come a long way, but there is still some way to travel." Yes Mr. Bernanke, you are right about that.

Key things to watch this week:
Monday - Personal Income and Outlays
Tuesday - Chicago PMI, Consumer Confidence
Wednesday - Motor Vehicle Sales, ISM Manufacturing Index, Construction Spending
Thursday - Jobless Claims, Productivity and Costs, Factory Orders
Friday - Employment Situation, ISM Non-Manufacturing Index

Performance

Headlines:

The U.S. economy sputtered in the second quarter, according to new estimates from the government released Friday, although the slowdown wasn't as bad as many had feared. The nation's gross domestic product, the broadest measure of economic activity, was revised sharply lower to an annual growth rate of 1.6% in the three months ending in June. The initial reading had been for a 2.4% growth rate in the period.

Japan Prime Minister Naoto Kan says he is ready to take "bold" action as the yen approaches its all-time high against the dollar. Many traders say new records are inevitable even after this year's 9.2% gain.

The number of babies born in the United States dropped 2.6% last year, according to a recent study. The news is not surprising, said Andrew Cherlin, a sociology professor at Johns Hopkins University, given the state of the American economy right now.

The Obama administration plans to take two new steps in the next few weeks to help troubled homeowners. The administration will begin a Federal Housing Authority refinancing effort to help borrowers who are struggling to pay their home mortgages, and will start an emergency homeowners' loan program for unemployed borrowers so they can stay in their homes, said Housing and Urban Development Secretary Shaun Donovan on CNN's "State of the Union."

Toyota will recall 1.13 million Corolla and Matrix cars for a flaw that U.S. regulators said may cause stalling "at any speed without warning." The recall affects vehicles from the 2005-2008 model years in the United States and Canada and follows at least three reported accidents linked to the defect.

"It is possible to give without loving, but it is impossible to love without giving." - John Wesley

Toffee-Butterscotch Bars

So good, and easy too!

Ingredients:
1 package 2-layer-size yellow cake mix
1/2 cup packed brown sugar
1/2 cup butter, melted
2 eggs
1 cup cashews, chopped
1 8-ounce package toffee pieces
Butterscotch sauce

Directions:
1. Preheat oven to 350 degrees F. Grease a 15x10x1-inch baking pan; set aside.
2. In a large bowl, combine cake mix, brown sugar, melted butter, and eggs. Beat with an electric mixer on medium speed for 1 minute or until combined, scraping bowl occasionally. Stir in the cashews.
3. Pat dough into prepared pan. Sprinkle with toffee pieces. Bake in the preheated oven for 15 to 20 minutes or until a toothpick inserted in center comes out clean. Cool completely in pan on a wire rack. Cut into bars and drizzle with butterscotch sauce.

Makes 32 bars.

Short Game Swing

A popular misconception is that the short game requires a short swing. As a result, chips, pitches, and sand shots are hit with short, stabby strokes that produce skulls, fat shots, and general misdirection.

You should think long, slow, and smooth for the short game. Precision is important around the green, so there isn't much margin for error. It's vital that you maintain a steady, smooth rhythm and tempo for every short shot you hit. Forcing yourself to make a short swing because you have to move the ball a short distance throws off your timing.

Instead, try counting through each short shot you hit: "one, two, three." Count "one" as you start the club away from the ball, "two" when you reach the top of the swing, and "three" as you swing through. From 40-yard pitch shots to delicate chips off the apron, maintain this same count. If you do, you'll find it much easier to make consistent contact.

Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Sources:
Marketwatch
The Wall Street Journal Online
Barrons
CNN Money
http://money.cnn.com/2010/08/27/news/economy/gdp/index.htm
http://www.bloomberg.com/news/2010-08-29/yen-rising-proves-catch-up-for-asia-exports-at-traders-target-75-to-dollar.html
http://www.cnn.com/2010/US/08/28/birth.rate.decline/?hpt=T2
http://www.bloomberg.com/news/2010-08-29/obama-administration-plans-two-mortgage-aid-steps-hud-chief-donovan-says.html
http://www.washingtonpost.com/wp-dyn/content/article/2010/08/26/AR2010082607095.html

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

Steve Arnold
Carnegie Wealth Management
9699 Bay Harbor Circle #203
Fort Myers, FL 33919

carnegiewealth@earthlink.net

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