Actionable Thinking Good morning!

Congress was back in session last Tuesday (11/13/12), returning for the lame-duck session of its 2-year term. They will use the remaining weeks of the year to reverse not only the looming fiscal cliff but to build on their embarrassingly low job-approvalrating of 21%. All post-election analysis points to a single mandate: Americans want a government that functions better (source: BTN Research, Gallup). President Obama, just a week removed from his 51%/48% victory over Mitt Romney, got back to work after months on the campaign trail. Obama met with 12 corporate CEOs, asking for their advice and support in dealing with the nations fiscal cliff. The key gathering however for Obama took place on Friday (11/16/12) in the White House when top leaders from both parties convened. The post-meeting press conferences revealed the optimism from participants that has been missing for more than a year. Congress may use the final weeks of 2012 to sketch out a broad outline of higher tax revenue and reduced entitlement th spending, leaving next years 113 Congress to fill in the blanks with the necessary legislative details (source: BTN Research). The fear of the USA going over its self-inflicted fiscal cliff has been a drag on the stock market. The S&P 500 is up +10.3% YTD (total return) with just 6 trading weeks remaining in 2012. How stocks perform for the remainder of the year may likely be driven by negotiations between House Speaker John Boehner (R-OH) and President Barack Obama (source: BTN Research). Notable Numbers for the Week: 1. JUST THIRTY - Beginning 1/01/14, US employers with at least 50 full-time employees will be required to provide for those employees a minimum level of government-defined health insurance. A full-time employee is defined as a person that is employed on average at least 30 hours per week (source: The Patient Protection and Affordable Care Act). 2. DEBT - Total outstanding debt of the USA was $16.261 trillion as of 10/31/12, up from $15.223 trillion as of 12/31/11. The $1 trillion increase in debt is equal to a daily deficit of $3.4 billion. Our debt ceiling is $16.394 trillion. At $3.4 billion of daily deficits, the USA will hit its debt ceiling on 12/09/12 (source: Treasury Department). 3. DOUBLE IT - Individual income taxes would have to increase by +96% for all American taxpayers in order to eliminate our $1.089 trillion deficit from fiscal year 2012. Total individual income taxes collected were $1.132 trillion for the latest fiscal year (source: Treasury Department). 4. TEACH THE WORLD - 48% of the 764,495 foreign students studying at US colleges during last years school year (2011-12) are natives of China, India or South Korea (source: Institute of International Education).

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This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed by NFP Securities, Inc. as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. The indices mentioned are unmanaged and cannot be directly invested into. Past performance does not guarantee future results. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market. Copyright 2012 Michael A. Higley. All rights reserved. If you do not want to receive further editions of this weekly newsletter, please contact me at 973-882-3600 or e-mail me at the address indicated below