Weekly Market Commentary June 17, 2013

The Markets
Like a host at a dinner party, the International Monetary Fund (IMF) put the performance of the U.S. economy on the table last week to be gnawed over by world markets. When the IMF presented its annual review of the worlds largest economy, it stated that: Despite some improvements in economic indicators, particularly in the housing market, the very rapid pace of deficit reduction is slowing growth significantly U.S. growth is expected to slow to 1.9 percent in 2013, from 2.2 percent in 2012. This projection reflects the impact of the sequester ($85 billion of automatic U.S. government spending cuts), and the expiration of the payroll tax cut and the increase in tax rates for high-income taxpayersGrowth could pick up to 2.7 percent next year with a more moderate fiscal adjustment and a further strengthening of the housing market. The IMF also said the Federal Reserve should continue quantitative easing through 2013. It was not the only one pondering the Feds quantitative easing program. The major U.S. stock market indices finished the week lower. The Dow Jones Industrials Average fell 1.2 percent last week, the Standard & Poors 500 Index was off by 1 percent, and the NASDAQ dropped 1.3 percent. Remarkably, the Dow experienced four straight days of triple-digit swings. The next Federal Open Market Committee Meeting is on June 18 and 19. While few people expect the Fed to announce it will reduce the pace of bond buying immediately, the majority of economists surveyed by USA TODAY predict the Federal Reserve will begin to reduce bond purchases by early fall.
Data as of 6/14/13 Standard & Poor's 500 (Domestic Stocks) 10-year Treasury Note (Yield Only) Gold (per ounce) DJ-UBS Commodity Index DJ Equity All REIT TR Index 1-Week -1.0% 2.1 0.4 -0.7 -0.8 Y-T-D 14.1% N/A -17.9 -6.3 7.0 1-Year 22.4% 1.6 -13.8 1.2 16.1 3-Year 14.3% 3.3 4.4 0.8 15.6 5-Year 3.7% 4.2 9.4 -10.6 5.8 10-Year 4.9% 3.2 14.5 1.1 11.0

Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance, Barrons, djindexes.com, Lond on Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

ARE EMERGING COUNTRIES LEADING THE WAY IN RENEWABLE ENERGY? It seems that way sometimes. According to UNEPs report, Global Trends in Renewable Energy Investment 2013, Renewables are picking up speed across Asia, Latin America, the Middle East, and Africa, with new investment in all technologies Markets, manufacturing, and investment shifted increasingly towards developing countries during 2012. For instance, after running even with the United States during 2011, China became the dominant country for renewable energy investment in 2012, according to the report. This doesnt mean the United States isnt in the race. According to The Economist, an analysis by Bloomberg New Energy Finance found the U.S. and China traded about $6.5 billion in solar, wind, and smart-grid technology and services during 2011. America sold about $1.5 billion more to China than it imported. The Economist concluded, American ingenuity is required to supply Chinese factories with such things as polysilicon and wafers for photovoltaic cells, and the fiberglass and control systems used in wind turbines. So, what does the future hold? Kiplingers Letters said solar power production will double in 2013 and move ahead of geothermal power as a source of clean energy. They believe wind energy will soon rival hydroelectric power, as well. The United States added more wind power capacity last year than any other type of power generation. Currently, wind comprises about 5 percent of power generated in the United States. Global investment in renewable energy may have fallen during 2012, but that doesnt mean the industry has lost momentum. Renewable energy is gaining share in a growing number of countries and regions, including the European Union where renewable energy primarily solar and wind power accounted for about 21 percent of electricity consumption in 2011, and almost 70 percent of new electric capacity in 2012. Renewables just may prove to be the tortoise in the energy race.

Weekly Focus Think About It

It is not in the stars to hold our destiny, but in ourselves. --William Shakespeare, English poet and playwright Best regards, Steve Steve Gierl Gierl Augustine Investment Management, Inc. 344 N. Pike Road Sarver, PA 16055 724-353-1800 877-979-1800 Fax number 724-353-1832 We appreciate it when you refer our business to others and invite you to forward your email to 1 or 2 other people who might find the content interesting.

If you would like to be removed from our email list please respond to this email with "Unsubscribe" in the subject line.
Steve@GierlAugustine.com visit our website @ http://www.retirewithga.com Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative. Gierl Augustine Investment Management, Inc., a Registered Investment Advisor. Gierl Augustine Investment Management, Inc., and Cambridge are not affiliated. Cambridge Investment Research, Inc does not accept orders and/or instructions regarding your account by e-mail, voice mail, fax or any alternate method. If you would like to execute a trade or if you have time-sensitive information for me, please call my office at 724-353-1800. Transactional details do not supersede normal trade confirmations or statements. E-mail sent through the Internet may be viewed by others and is not confidential. Cambridge Investment Research, Inc reserves the right to monitor all e-mail. Any information provided in this e-mail has been prepared from sources believed to be reliable, but is not guaranteed by Cambridge Investment Research, Inc and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation. Cambridge Investment Research, Inc and its employees may own options, rights or warrants to purchase any of the securities mentioned in e-mail. Cambridge does not offer tax advice. This e-mail is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you did not intend to receive this message, please contact the sender immediately and delete the material from your computer. * This newsletter was prepared by Peak Advisor Alliance. Peak Advisor Alliance is not affiliated with the named broker/dealer. * 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 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. * Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association. * The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. * The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. * Yahoo! 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. Sources: http://uk.reuters.com/article/2013/06/14/uk-imf-usa-idUKBRE95D0LJ20130614 http://www.imf.org/external/pubs/ft/survey/so/2013/car061413a.htm http://online.wsj.com/article/BT-CO-20130614-707207.html http://finance.yahoo.com/blogs/the-exchange/finance-week-ahead-focus-fed234959581.html;_ylt=Akb29zb_aSPtjMcmdEEbXHCiuYdG;_ylu=X3oDMTNycWVwNWh0BG1pdANGUCBUb3AgU3Rvcnk gTGVmdARwa2cDZmJjYjQ2NjUtNDM1MC0zZTAzLThhZTEtOTMyYmVjNmVlM2E2BHBvcwMxBHNlYwN0b3Bfc3Rvcn kEdmVyA2JkMjExNjMyLWQ2MGMtMTFlMi1iZmZmLTlhNmEyMzEwZDkyNQ-;_ylg=X3oDMTFkcW51ZGliBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3BtaA-;_ylv=3 http://finance.yahoo.com/news/wall-st-week-ahead-investors-230802196.html http://www.federalreserve.gov/whatsnext.htm http://www.ibtimes.com/economic-events-june-fomc-meeting-minutes-bernanke-press-conference-fed-qe-tapering-1308475 http://www.usatoday.com/story/money/business/2013/06/16/fed-june-meeting-advance/2423363/ http://www.ren21.net/Portals/0/documents/Resources/GSR/2013/GSR2013_lowres.pdf http://fs-unep-centre.org/publications/global-trends-renewable-energy-investment-2013 http://www.economist.com/blogs/analects/2013/03/renewable-energy http://www.kiplinger.com/article/business/T008-C024-S005-torn-from-the-kiplinger-letters.html http://www.brainyquote.com/quotes/quotes/w/williamsha101458.html