~ Susan E. Penney, Westside Investment Management ~

Oklahoma City, OK – Local financial advisor Susan E. Penney, of Westside Investment Management, announced in she has become a member of the Financial Services Institute (FSI) in Washington, D.C., effective April 30th. FSI advocates for Main Street Americans’ access to unbiased, affordable financial advice, delivered by a growing network of over 35,000 independent financial advisor members.

“I am proud to become a member of the FSI, an organization that works hard every day, to protect my clients’ access to quality financial advice,” said Susan. “FSI helps educate elected officials and regulators on what Americans need from financial advisors and how the industry works with clients to secure their financial futures. They also help ensure that I can continue to offer my clients and potential clients the advice they need.”

“We are very pleased to have Susan E. Penney as a new member,” said FSI President & CEO Dale E. Brown. “Our advocacy is only as effective as our engaged members. And conscientious advisors like Susan E. Penney help bring real-life experience to our efforts. We plan to work closely with Susan E. Penney as we advocate for independent financial advisors and the hard-working clients they serve.”

About the Financial Services Institute (FSI): FSI is an advocacy organization for independent financial services firms and independent financial advisors. Established in January 2004, we have well over 100 broker-dealer members and over 35,000 financial advisor members. Our member firms have upwards of 180,000 financial advisors affiliated with them. Our mission is to create a more responsible regulatory environment for independent broker- dealers and their affiliated independent financial advisors through effective advocacy, education and public awareness. And our strategy includes involvement in FINRA governance, constructive engagement in the regulatory process and effective influence on the legislative process. For more information, please visit www.financialservices.org.

(The Financial Consultants of Westside Investment Management are also Registered Representatives with, and Securities are offered through, LPL Financial Member FINRA/SIPC)

Susan E. Penney is a Registered Investment Advisor at Westside Investment Management, LLC in Oklahoma City, Oklahoma. For more information, visit www.westsideim.com or contact her directly by telephone at 405-254-5758 or by e-mail at susan@westsideim.com.

There is no doubt, 2011 was a tough and volatile year for the market. Trends in outperformance were few. Perhaps the only trend that was apparent in 2011 was the trend of volatility. During the course of 2011 the S&P 500 experienced three corrections of 10% or more recovering from each and finishing 2011 virtually flat. This means that S&P 500 experienced six swings of 10% or more during the year. That is quite a high number given the fact that from 2003 to 2007 the S&P 500 did not see one 10% correction. History suggests that volatility like this does not persist for extended periods of time, but in the event that it does there are proactive steps that I will continue to take in order to attempt to dampen the overall volatility in your portfolio.

2012 has started off on a positive note, so far, and already there is evidence of emergent trends that I wanted to share with you at this time of the year. With that said, here are the market themes that are in place today.

Equities, particularly domestic equities, have started the year off on a positive note and come into the year as the strongest of the asset classes that I follow. Rallies in the equity market in 2011 came in fits and starts, but as we head into 2012 we are doing so with a generally positive foundation. For instance, about 58% of stocks in the market are trading in an overall positive trend, which means that a majority of stocks are trending higher in price. This does not mean we will simply throw a dart and pick stocks or sectors at random, but the weight of the evidence for this asset class is positive here.

One of the main positive headlines in 2011 was the record move in the price of Gold, which managed to notch an all-time high of $1,892 in 2011, providing a bright spot for the financial market. However, over the course of the past couple of months there have been some troubling signs from the yellow metal, not only in terms of absolute price, but in terms of strength versus other commodities. One of the beneficiaries within the Commodity space from the weakness seen from Gold has been Crude Oil. The price of a barrel of Oil has crossed back above the $100 level. Undoubtedly, an increase in the price Oil will translate to higher prices at the pump, but there are ways to benefit from higher Energy prices in your investment portfolio.

International Equities was the worst performing asset class last year, and the indicators I followed had this group falling out of favor in the fall of 2010. Over the first few weeks of 2012, though, this is an asset class that has been showing some positive signs. For instance, trends of some of the bigger countries are showing some promise as areas like China, Brazil, and even some of the European countries are moving back into positive trends. This will continue to be an area to watch closely and as the positive signs continue to mount we will begin to allocate a bigger percent of the portfolio across the pond. Times when it feels like the worst time to be buying, as is the case now with everything going on especially in Europe, often ends up being one of the better times to allocate money to that space.

Part one of a two part series.

Happy Spring Everybody!   Historically, March has been a busy month with the invention of Silly Putty in 1950,  Monopoly in 1933, U.S. Government-issued paper money in 1862, Rubber Band invented in 1845, Coca Cola 1886, anybody notice a trend? To me it looks like bouncy things are popular in March. In the markets so far this year, that is exactly what we’ve seen; a big bounce.

While there is no way to predict what the future holds for our lives, the financial markets, or even the economy, there are actions that can be taken along the way to pursue the best possible outcome. The past couple of years have been a trying time for many, and while the turning of the calendar to 2012 brings a spark of optimism toward the future, we must always be prepared for whatever the financial markets bring our way. I have learned a lot about the markets in these times, and I too share that same optimism about the future, but perhaps for different reasons than many.

These days many are optimistic simply because of the feeling that things in Europe, the economy, etc. just can’t get any worse. That type of thinking is relegated to those types of people who sit back and let it happen without a proactive approach to navigating the tumultuous markets. I am not optimistic because I think the worst is over or that better times lie ahead; I am optimistic because I have a game plan for managing risk in the financial markets no matter what the future brings. My game plan does not involve listening to the mass media, which often breeds a following of the herd effect, nor does my game plan involve my own gut feeling on the market. The game plan that I adhere to, and will adhere to going forward, is grounded in the basic economic concept of supply and demand. There is a time when that means being extremely defensive on the equities market and parking a large chunk of the portfolio in cash, like the market of 2008. However, there are other times when the equity market is supporting higher prices, like 2009 and 2010, and thus I will have increased, if not over-weighted exposure to the equity market. Who knows how the next 12 months will play out, let alone the next 12 years, and this is why it is so important for me not to try and predict what is going to happen; rather, I will simply let the market tell me what is happening and take advantage of those opportunities.

If you have any questions about the particulars of your portfolio, or would like to discuss the potential opportunities that I have seen arise within the equity market, please give me a call. And read the April edition of the Gayly for part II of this story.

This material was prepared in part by Dorsey Wright and Associates. Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. Investing in Emerging Markets often accentuates these risks.

Investing in precious metals allows for a source of diversification for those sophisticated persons who wish to add precious metals to their portfolios and who are prepared to assume the risks inherent in the bullion market. Any bullion or coin purchase represents a transaction in a non-income-producing commodity and is highly speculative.

Buying commodities allows for a source of diversification for those sophisticated persons who wish to add commodities to their portfolios and who are prepared to assume the risks inherent in the commodities market. Any purchase represents a transaction in a non-income-producing commodity and is highly speculative. Therefore, commodities should not represent a significant portion of an individual’s portfolio. Past performance is not indicative of future results and there is no assurance that any forecasts mentioned in this report will be attained. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

This time of the year always brings a tremendous amount of excitement all the way from the young to the old and everywhere in between. The holiday season is in full effect with just a couple of shopping days left before Christmas Day, which means that children across the world will soon be waking up on Christmas morning with much anticipation to see what gifts Santa Claus left behind. However, even before Christmas arrives Santa Claus makes his presence known in the equity market. Among many of the other phenomenon that occurs around this time of the year, one that is frequently discussed is the infamous Santa Claus Rally.

This is the observation that during the last week of the year as well as the a couple days into the New Year, the markets generally rise. The Santa Clause Rally actually encompasses on the last five trading days of the year and the first two trading days of the New Year, so seven trading days in all.

December typically has generated the best returns for U.S. stock investors, and is known as the “Santa Claus rally.” Since 1945, the Standard & Poor’s 500-stock index has risen 1.7% on average in December, compared with a 0.7% return for the average of all 12 months. The index also has posted positive returns in December 77% of the time since World War II, compared with 59% for all 12 months, according to S&P.

As with many market adages, the Santa Claus rally certainly has a historical bias to it, but it is certainly not something that we are going to solely base our investment decisions on.  So, while many will be making last minute pleas for an iPad or Kindle from Santa Claus instead of a lump of coal, it appears that old St. Nick will be hard at work looking to provide the equity market with a sweet ending to an otherwise uneventful year.

If stocks do end the year in positive territory, which would confirm yet another stalwart of the almanac: The “January barometer.”
So, come back next year and I will share more of these tidbits of the Stock Market. Thanks for reading and I wish each and every one a joyous Holiday Season.

*This material was prepared, in part, by the Wall Street Journal and Dorsey Wright and Associates

(1) The Standard and Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
(2) The S&P 500 is an unmanaged index which cannot be invested into directly.

Past performance is no guarantee of future results

Susan E. Penney is a Registered Investment Advisor at Westside Investment Management, LLC in Oklahoma City (www.westsideim.com). You may contact her directly at 405-254-5758 or by email at susan@westsideim.com.