Dear Clients:

My family and I just got back from our annual trip down to southern California. We took our twins to Disneyland and the California Adventure Park and had a wonderful time, but while we were walking through Disneyland something kept bothering me. I noticed the lines were at least 20-30 minutes shorter than normal!  My wife and I pondered why this would be and determined that with the recent opening of the new Cars Land at the California Adventure Park, the majority of people were spending their day over there as opposed to in Disneyland.  It proves that the demand for the better, bigger and newer rides overshadow the demand for the weaker/older rides.  This brings to mind what is happening in the world today.  Money is flowing into stronger countries (i.e., the U.S. and Germany) and flowing out of the weaker countries (i.e., Greece, Spain and Italy).

The demand for our dollars and bonds keeps interest rates very low. That, along with the Federal Reserve purchasing long-term debt, keeps our borrowing costs down.  Low interest rates mean great mortgage rates, but also mean terrible CD and savings rates. If you have extra money sitting in the bank earning minimal interest, you need to speak to either Jay or myself to come up with a better plan to potentially enhance your returns.  Of course, other investments don’t offer this potential without some risk.

You may or may not have heard but we are moving! Two months ago we purchased a building in downtown Castro Valley which we believe will better serve your needs. As of right now our scheduled move date will be close to the end of the year and we are very excited. We will keep you posted via email and letters when and where the actual move will take place.

On your Cetera Advisor Networks LLC/Pershing account statements you may have noticed a slight change. Listed in the holdings section of the statements are new columns titled Unit Cost and Cost Basis. Due to changes in the IRS laws, our company is now required to track what you paid for your investments starting in 2011.  All purchases made prior to 2011 are not being tracked and you will see “please provide” on your statement.  If you know what you paid for the investments that have “please provide” written next to them, let us know so we can input it onto your statement and have it tracked for future reference.

As always, we thank you for being our loyal clients.

Sincerely,