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Jim: Hi everyone today is Wednesday, September 7, 2016 and this is our weekly, midweek, market update call, brought to you each Wednesday to bring you current with observations, assessments and decisions we are making.

Today’s comments include some observations in the financial news as well as a review of our indicators that we work with to provide guidance for our portfolios.

But first, here is Bernie Murff with this month’s topic, the often mis-understood area of life insurance.What can you tell us that will support our wealth management approach?

Bernie: Thank you, Jim.

My topic this month is Life Insurance, specifically this week General Terms: The Basics. Life Insurance like the investments we choose to manage in your accounts is specific to your needs. As a Wealth Management tool – life insurance is no different.

At each stage of our lives – from your early 20’s to retirees - each may need some form of life insurance. Our job is to help you figure out what makes the most sense. No matter the age, the goal is still typically the same – most folks use life insurance to cover one of the following items: replace loss of income, pay debts, (mortgages, school loans, car loans, credit cards, etc.) or leave an estate for their heirs. The questions really arise around “How much life insurance do I need? Or How much life insurance can I afford?” and “What type of life insurance makes sense based upon my needs?”

The basic types of life insurance are term life which has an end date after a certain number of years or permanent life which has a cash value. You can buy life insurance thru your employer, a licensed life insurance agent like us or directly from an insurance company.

For more information on the Life Insurance Basics – we will post an article with our transcript of the call. Feel free to look at this information, share it with others or give us a call to discuss your situation and what might make sense.

I’ll now turn the call over to Jim to review his talking points for the week. Jim

Jim: Thank you Bernie.

Back in 2013, we told you that the NY Times had reported that the banks were at it again—that’s a good three and a half years ago—making products that got our economy in trouble, later known historically as the Great Recession. Just in the first few months of 2013, the banks had already issued more bonds backed by collateralized mortgages which was at as fast a pace as was the case in 2005. Today, just in recent weeks the publication, The Economist, published a sobering report (The Economist, may need a subscription:http://www.economist.com/news/briefing/21705316-how-america-accidentally-nationalised-its-mortgage-market-comradely-capitalism ) that we are back to the dirty tricks of leverage and disregard for investment credit that we experienced back in 2006-2009. The two culprits, according to The Economist are Quicken Loans and Freedom Mortgage, these two firms issue nearly half the mortgages issued today.And why not, they advertise more than any other financial institution. The Economist says that it is irresponsible underwriting that got us hot water then and is re-surfacing as the prime issue today. The article will be posted inside the transcript on our website over the next few days.

How does storing gold in an IRA, but in your home sound? Could be just the way for gold bugs and precious metal fanatics.Internet and radio pitches suggest that IRA purchases of gold coins and bullion can be stored at home or in a safe deposit box.Experts in this area are skeptical that practice would hold up to the law; in fact the law is written in gray space, so that the interpretation is varied.One way around this of course is to own gold as an ETF that trades like a stock and mirrors the price change of that precious metal.Also, I have always had trouble wondering under what conditions someone could withdraw gold from an IRA and have it in negotiable form to exchange for goods and services at some later date. How does one get change for a good that cost far less than the bullion itself? I believe we are going to see challenges with the IRS as the country becomes more hunkered down as it appears to be in recent months.

Lastly, I was warmed to see Jason Zweig in the Wall Street Journal comment on the complacency in our stock and bond markets.We have seen the fears ease and the anxiety lessen in investor attitudes to risk in the markets and that for the most part is healthy. However, complacency is another word for boredom in the financial markets. Caring less is not healthy, caring responsibly is. Also complacency is often a precursor to weaker markets and index declines. But as the Zen forecaster says over and over. . . . “We’ll see . . . .”

Market indicators, let’s take a quick look:Asset classes are ranked as ever before—domestic equities, commodities, fixed income, cash, international equities and currencies, currencies still in last place. Bullish percent’s for the three large groups we follow are as follows:New York Stock Exchange @ 66.8% / Over the Counter markets @ 54.0% and then the hybrid mix of the two of them, the optionable stocks @ 62.0%. Perhaps considered overbought or frothy, these are still within investable ranges although the selections are muted.Our sector analysis shows the top three sectors as semi-conductors and internet and forest products and paper. To find out how we are utilizing these please contact us directly in the office.

Bernie, anything to add to today’s call, your children all back in school? If anyone has any questions or comments please speak up as I unmute the lines.

Opinions expressed are not necessarily those of Raymond James & Associates. The author's opinions are subject to change without notice. Information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Past performance is not indicative of future results. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success.

Information provided is general in nature, and is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security.

ETF shareholders should be aware that the general level of stock or bond prices may decline, thus affecting the value of an exchange-traded fund. Although exchange-traded funds are designed to provide investment results that generally correspond to the price and yield performance of their respective underlying indexes, the funds may not be able to exactly replicate the performance of the indexes because of fund expenses and other factors. Commodities may be subject to greater volatility than investments in traditional securities. Investments in commodities may be affected by overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes and international economic and political developments.

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