~ 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.

Complied by Ken Townsend

With the housing market in turmoil nationwide from fallout of the worst recession since the 1930’s there has been a lot of interest in what a person or couple has to do to obtain a mortgage in the market today. In the past decade home mortgages were easy to obtain, sometimes maybe too easy. After the “Crash” began in late 2008 a lot of banks and mortgage companies came under scrutiny for the questionable loans made and things began to change.

Gayly reporter, Ken Townsend interviewed Brett Baldwin, Branch Sales Manager for Well Fargo Home Mortgage. In this interview, we’ll attempt to unravel some of the mysteries behind what it takes to get a good home mortgage in today’s economic environment. Baldwin has 10 years experience in the home mortgage industry. He is based out of the Oklahoma City metro area, but is licensed in any state.

Gayly: With regards to the states of Oklahoma, Kansas, and Arkansas, what areas are serviced by Wells Fargo Mortgage?

Brett:  We have home mortgage offices in all 50 states and originate more than 25% of all the mortgages nationwide.

Gayly: What changes have the home mortgage market gone through since the start of the “Great Recession”?

Brett:   We have seen credit criteria tighten up a little. Prior to the housing market busting, there were a lot of stated-income, stated-value loans. Many lenders were not doing their due diligence by verifying that borrowers were able to afford the loans they were getting. There were also a lot of “exotic” mortgage products designed to allow customers who would not otherwise qualify for a home to buy a home. Some examples of these were negative amortization mortgages (mortgages with payments that didn’t even cover the interest and a balance that went up rather than down each month), interest only mortgages, and option ARM’s (adjustable rate mortgages). This in conjunction with the lack of verifications resulted in many borrowers ending up in homes they could not afford. Fortunately, Wells Fargo never got involved with a lot of these riskier loans and has had collection and foreclosure rates that are far lower than the national average as a result.

To avoid similar issues in the future, mortgage lenders have followed suit and tightened up their criteria. The biggest differences most of us will see are simply more verifications, a smaller menu of mortgage options, and a lot more disclosures. If you are buying a home, you can expect to bring in at least a couple month’s of paystubs, bank statements, two years of W2’s and possibly your taxes as well. You may be asked for explanations and copies of supporting documents along the way. The process can seem a little overwhelming, but a good mortgage professional will not only be able to tell you what you need to provide, but also be able to explain why it’s needed, while making the process as painless as possible.

Even though credit has tightened up, there are still a lot of options for people interested in refinancing or buying a home. Government insured loans like an FHA or VA loans are still a great way to buy a house if your credit is less than perfect or if you do not have a huge down payment. You can oftentimes qualify for either of these with a median credit score of 600 or above and a 3.5% down payment on FHA loans or 0% down payment for VA. There are several other programs and I can help you explore these other options.

Gayly: Is there an ideal candidate for a home loan in today’s market?

Brett:  When processing a loan, your loan officer is looking at your credit, your capacity to repay the loan, and the collateral (the property itself). Ideally when buying a home, you’ll want to be good in all of these areas.

Gayly: How difficult is it to get the best home mortgage rates today?

Brett:   It’s not as hard as you might think, and rates are historically low across the board. With low rates and low prices on homes, it is a fantastic time to buy a new home. Home values in this region have held pretty steady, so if you have not looked at refinancing yet, there’s no better time than the present. In fact, there are programs available right now for many homeowners that allow you to refinance for lower rates and payments even if you owe more than your house is worth.

Gayly: Can you explain the difficulties, if any, of a same sex couple getting approval for a home mortgage loan as opposed to a heterosexual couple, either married or unmarried?

Brett:  There aren’t a lot of differences in the actual approval process, but there are definitely things you will want to consider as a same sex couple that a heterosexual married couple may not necessarily encounter. Most of these surround the “what if’s” of homeownership. For example, what if you separate down the road? In this case, you’ll want to tackle these issues upfront so if you ever have to sell the home or divide equity, it’s equitable. If one or the other of you is contributing more to the down payment or making a larger portion of the payment, you may want to address this. It may feel a lot like signing a prenuptial agreement, but talking with a mortgage professional who works frequently with gay couples can help you avoid a lot of heartache down the road.

Gayly: Finally, can you tell us a little about how Wells Fargo Mortgage views the Oklahoma, Kansas and Arkansas markets for future loans?

Brett:   All of these housing markets are strong. In fact, Tulsa and Oklahoma City were both recently recognized as two of the top cities in the nation with respect to recent increases in housing values. None of these areas had a large bubble or overinflated values, so we should see these markets continue to do well as our overall economy improves. Since these housing markets are more stable than many areas that were “booming” prior to the bust, Wells Fargo will absolutely continue to support homeowners and homebuyers in these communities by offering a variety of programs and options to help people buy new homes and stay in the homes they already own.

Over the last four years, the market declined in excess of 2% in a single day around 100 times, more than any other four-year period since the S&P 500 Index’s formation in 1957. On the flip-side, the market also recorded a 2% or greater gain in a single day more than any other four-year period. Recently we have experienced a market of extremes. In 2012, finding a middle ground, or Meeting in the Middle, will be key for growth in the markets and economy. Consumer sentiment, business leaders, policy makers and geopolitics are going to have significant impact on the investment environment.

2012 looks to be another year of slow-as-a-slug growth.  GDP is likely to average about 2% in 2012, supported by solid businesses spending and modest, but stable, consumer spending. Inflation may recede early in the year, by year end it may begin to re-emerge as the impact of a falling dollar, rising commodity prices and the record-breaking monetary stimulus by the Fed begins to be reflected in prices. Global growth in 2012 should be supported by solid emerging market growth including the consensus of 8-9% growth in China, the world’s second largest economy, while Europe experiences a mild recession. There could be a one-in-three chance of entering a recession in 2012. However, provided we avoid a shock from unforeseen events, interest rates do not surge above 5% and oil prices do not soar to record highs, I believe the business cycle likely lasts until around 2015 – the average cycle duration of five years experienced since 1950. This leaves 2012 as a mid-cycle year of continued, though sluggish, growth. Many investors fear the U.S. economy is poised for a business cycle much shorter than the average of eight years seen in recent decades. The fear of a return to recession just three years after emerging from the Great Recession of 2008 – 2009 is driven largely by the concerns over a lack of job growth and the fiscal budget and debt problems here in the United States and overseas. While recognizing the challenges posed by unsustainable government budget deficits and relatively high unemployment rates, the support of strong business productivity and a corporate spending boom are being overlooked by investors.

So, rather than looking for a rock to hide under, investors should be looking under rocks to find investment opportunities in unusual places in 2012. I have many ideas and arrays of options for finding those opportunities most suitable for you. If you would like to explore with me or like more details pertaining to the above article, give me a call. I would love to hear from you.

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.