• PGWM, LLC

MARKET UPDATE

Fridayʼs unexpected employment report weighed heavily on the stock market. The report exposed a continued pattern of poor job creation caused by anemic U.S. economic growth. Global concerns led by troubles in the Eurozone and followed by weak manufacturing reports coming from China, only added fuel to the fire. The question now becomes whether we are near the bottom of the most recent correction, or, can we expect more volatility like we experienced in the summer and fall of 2011. We believe that now is not the time to make any radical changes to your portfolios for the following reasons:

1. Even though the situation in Europe is troublesome, it is not hopeless. There is still time for their Central Bank and members of the European Union to agree on measures that could forestall either a Greek exit or a collapse of the euro. European resolve to tackle their economic problems cannot be underestimated as they continue to address their financial problems with unifying measures such as a European bank union, euro bonds or more stringent European controls over national budgets.

2. China is about to undergo a transition in Party leadership and a smooth changeover can only occur if the countryʼs populace can be assured that they will remain a global economic powerhouse.

3. Members of the U.S. Federal Reserve Bank have indicated that they would be willing to continue their purchasing program of long-term Treasuries (Operation Twist) which was scheduled to end this month. The objective of this program is to keep interest rates low enough to incentivize investors to buy riskier assets such as real estate and stocks. And, even though Washington has become the poster

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 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. Past performance does not guarantee future results.

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