A comprehensive overview of Steadfast Income REIT, Inc. including:

• Offering highlights
• Overview of multifamily real estate dynamics
• Introduction to Steadfast Companies
• Question and answer

Day: Thursday

Date: February 23^rd

Time: 12:00 PM – 1:00 PM

or

Day: Friday

Date: February 24^th

Time: 12:00 PM – 1:00 PM

Website:

http://carperwealthmanagement.com/events/

Phone:

678-566-3682

Email:

mailto:beth@carperwealthmanagement.com

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING.

For more complete information about investing in shares being offered by Steadfast Income REIT, Inc. including charges and expenses, refer to the prospectus. Read the prospectus carefully before you make an investment decision. An investment in Steadfast Income REIT, Inc. involves a high degree of risk and there is no assurance that the investment objectives of this program will be attained. The merits of this offering have not been endorsed by any securities regulatory agency. Any representation to the contrary is unlawful. Consult the prospectus for suitability standards in your state. Steadfast Income REIT is sponsored by Steadfast REIT Investments, LLC, an affiliate of Steadfast Companies. Steadfast Capital Market Group, LLC, member FINRA/SIPC, is the dealer manager for the Steadfast Income REIT, Inc. Steadfast Income REIT is sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Companies, an Orange County, California-based group of affiliated real estate investment and operating companies that acquire, develop and manage real estate in the U.S. and Mexico.

Erin Carper, CERTIFIED FINANCIAL PLANNER™ and Investment Advisor Representative. Securities and investment advisory services are offered solely through Ameritas Investment Corp. (AIC), member FINRA/ SIPC. AIC, Carper Wealth Management, LLC, and Steadfast are not affiliated. Additional products and services may be available through Erin Carper or Carper Wealth Management that are not offered through AIC.

As investors increasingly put aside fears of economic calamity and focused again on fundamentals, the Dow Jones Industrial Average broke through to its highest close since May 2008, back before the Lehman Brothers collapse and ensuing economic meltdown. The combination of strong job growth, a three-year low in unemployment, and other positive developments, propelled the Dow ahead 156.82 points, or 1.23%, on Friday. At this point, the blue-chip index would have to rise just 10% to reach its record close of 14164.53, hit Oct. 9, 2007.[i]

The biggest economic news last week surrounded Friday’s Employment report from the Bureau of Labor Statistics (BLS), though the results are being heavily debated. According to the report, total nonfarm payroll employment rose by 243,000 in January, and the unemployment rate decreased to 8.3%. The report added “job growth was widespread in the private sector, with large employment gains in professional and business services, leisure and hospitality, and manufacturing.”[ii] Sounds good, right?

Skeptics argue the reason the employment numbers look so good is because 1.2 million Americans dropped out of the workforce in January; they gave up looking for work. In simple English, if less people are looking for work, it looks like less people need jobs. Also last week, the Congressional Budget Office released its projected employment outlook for the next few years, in which they predicted the unemployment rate will be at 8.9% during the last quarter of 2012 and rise to 9.2% for the last quarter of 2013.[iii] Those numbers aren’t so good. So what’s the real story? Frankly, it probably exists somewhere in the middle.

Employment reports, like most other economic reports, are based on estimates. Like a thermometer, these reports can be used to take the temperature of the recovery, not to diagnose it. They only tell us a little bit about one symptom. If we rely too much on one report, we set ourselves up for disappointment. It is much more effective to look at trends. What trend are we seeing? To quote a recent commentary from First Trust, “Private sector jobs have increased for 23 consecutive months, total cash earnings are up 4.6% in the past year, and previous months’ data are being revised upwardly, not downwardly. The bottom-line is that the economy is getting better.”[iv]

Like a patient recovering from traumatic injuries, our economy is still going to have good days and bad days. It may not be completely well, but it is healing. Slowly, but surely.

ECONOMIC CALENDAR:
Tuesday: Ben Bernanke Speaks at 10:00 AM ET, Consumer Credit
Wednesday: EIA Petroleum Status Report
Thursday: BOE Announcement, ECB Announcement, Jobless Claims, Wholesale Trade
Friday: International Trade, Consumer Credit, Ben Bernanke Speaks at 12:30 PM ET, Treasury Budget

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

The New York Giants defeated the New England Patriots at Super Bowl XLVI for the second time in the Super Bowl in recent years. New York managed to survive a valiant effort on a Hail Mary attempt from Tom Brady in the last seconds, and held on for a 21-17 win.[v]

Greek Prime Minister Lucas Papademos struck a tentative deal with political parties on austerity measures demanded by international creditors. They agreed in a five-hour meeting Sunday to make additional reductions this year equal to 1.5% of gross domestic product. With the country’s stability at stake, the accord marked another step forward.[vi]

The European Union’s total government debt rose slightly to 82.2% of economic output in the third quarter of 2011, the EU’s statistics agency said on Monday, lower than the United States but still a burden that could take decades to pay down.[vii]

New York Attorney General Eric Schneiderman sued banking’s Big Three – JP Morgan Chase, Bank of America, and Wells Fargo – on Friday in New York State Supreme Court over their use of an electronic mortgage database that played a key role in financing the nation’s historic housing bubble. “Our action demonstrates that there is one set of rules for all — no matter how big or powerful the institution may be — and that those rules will be enforced vigorously,” said Schneiderman in a statement.[viii]

With only a couple trading days left in January, stocks are positioned to lock in four straight months of gains and finish with their best performance since 1997.[i] Unfortunately, some momentum was lost last week after the government said the U.S. economy expanded at a slower-than-expected pace in the fourth quarter. For the week, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 and Nasdaq notched modest gains.[ii]

Because the figures reported by the Commerce Department were lower than expected and stocks pulled back, should that lead us to conclude that economic growth was poor? Not at all. Gross domestic product, the broadest measure of the nation’s economic health, grew at a 2.8% annual rate during the last three months of the year, which is a major improvement from the 1.8% we saw during the third quarter, and is the fastest growth we’ve experienced since the second quarter of 2010.[iii]

On the other hand, when you look closely at the numbers, there are some important points to note. One is that the majority of the growth came from one area – business inventories. Private businesses increased inventories $56.0 billion in the fourth quarter, following a decrease of $2.0 billion in the third. Of course that sounds wonderful, but it can also be a double-edged sword. While it shows that businesses are optimistic about the health of the economy and feel confident they can sell their goods, if sales fall short of expectations, it can create a financial burden for them in the future. Only time will tell how this works out.

Another important point is that “real final sales of domestic product” – GDPless the change in private inventories – only increased 0.8% in the fourth quarter, compared with an increase of 3.2% in the third. So while GDP as a whole picked up in the fourth quarter, real sales slowed down. This is likely one of the reasons why the Federal Reserve lowered its outlook for the economy in 2012, announcing that they expect it to grow between 2.2% and 2.7% this year.[iv]

What’s next? The week ahead is a heavy one for economic data that includes personal income, consumer confidence, auto sales, manufacturing, construction, and the key nonfarm payrolls figure at the end of the week. In addition to the economic news, nearly 100 companies in the S&P 500 will report quarterly earnings.

Why are all these numbers important? For months,U.S.economic indicators have taken a back seat to headlines out ofEurope, but as confidence grows that the Eurozone will survive, focus should gradually shift back to the health of theU.S.economy. I will be watching this data and sharing my thoughts with you in future weekly updates.

ECONOMIC CALENDAR:
Monday – Personal Income and Outlays
Tuesday – Employment Cost Index, Redbook, S&P Case-Shiller HPI, Chicago PMI, Consumer Confidence
Wednesday – Motor Vehicle Sales, ADP Employment Report, ISM Manufacturing Index, Construction Spending, EIA Petroleum Status Report
Thursday – Jobless Claims, Productivity and Costs
Friday – Monster Employment Index, Employment Situation, Factory Orders, ISM Non-Manufacturing Index

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

On Friday, the Obama administration said it was expanding eligibility for its Home Affordable Modification Program, known as HAMP, to borrowers with higher debt loads and tripling the incentives it pays banks that reduce principal on loans. While the new changes could greatly expand the number of homeowners that receive help from HAMP, subsidizing real estate investors with taxpayer money could also create controversy.[v]

The leaders of Denmark and Finland said China is “willing” to contribute to International Monetary Fund efforts to bail out debt-ridden southern Europe, within limits. Speaking at the World Economic Forum annual meeting in Davos, Helle Thorning-Schmidt, prime minister of Denmark, and Finnish Prime Minister Jyrki Tapani Katainen stressed the need for China and the European Union to cooperate on some form of bailout from the IMF.[vi]

A U.N. nuclear team arrived in Tehran, Iran early Sunday for a mission expected to focus on Iran’s alleged attempt to develop nuclear weapons.[vii]

Facebook may finally be ready to go public. The company is planning to file IPO registration papers with the Securities and Exchange Commission next Wednesday, according to the Wall Street Journal. Few additional details are available so far.[viii]

There’s an old adage you may have heard recently which says: “As goes January, so goes the year.” What is this January barometer all about? According to the Stock Traders Almanac, the month of January tends to predict the direction of the market with an 88.5% accuracy ratio, with only seven major errors recorded since 1950.[i] Those aren’t bad numbers.

What causes the “January effect”? Most sources attribute it to a calendar-related anomaly in the financial markets where security prices increase in the month of January because investors sell losing positions in December and reposition themselves after the first of the year, or vice-versa.[ii] While this is certainly not exact science, and it is far too early to know if January will accurately predict the rest of the year, it is interesting to note.

So far, the Bulls are really showing off. With seven trading days left to go in January, the benchmark indexes are all up between 4% and 7%. The S&P 500’s 4.5% YTD gain marks its best start since 1987![iii] So does this bull have legs? Skeptics will tell you it doesn’t and idealists will tell you it does. We’d like to tell you that we don’t know. We’re not clairvoyant. (Sorry, we know you wish we were.) What we do know is that markets don’t move up or down in a straight line, and we won’t be surprised if we experience a pullback in the weeks ahead. This is not something we fear; it’s just the nature of the stock market.

There are both positive and negative factors at work right now, and we are monitoring many of them. Europeis still on the map, and our economy is growing at a slower-than-average rate that leaves it somewhat vulnerable to external shocks. At the same time, we see the strengthening in various sectors such as financials, basic materials, durable goods, and technology[iv] as reasons to sustain our optimism that both the stock market and the economy will fare well in 2012.

 January 2012 Calendar

ECONOMIC CALENDAR:
Tuesday – Redbook
Wednesday – Pending Home Sales Index, EIA Petroleum Status Report, FOMC Meeting Announcement
Thursday – Durable Goods Orders, Jobless Claims, New Home Sales, Leading Indicators
Friday – GDP, Consumer Sentiment

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

The economy probably grew at its fastest pace in a year and a half during the fourth quarter; a key U.S. report is expected to show. The current MarketWatch forecast of economists predicts 3.0% growth in the fourth quarter, well above the third-quarter level of 1.8%. That would be the fastest pace of growth in a year and a half.[v]

Amid heightened tensions with Iran, an American aircraft carrier has sailed through the Strait of Hormuz into the Persian Gulf. The Navy says it’s a routine maneuver. Iran recently suggested it might use military force to close the Strait in retaliation for new international economic sanctions.[vi]

The average price for regular gasoline at U.S. filling stations rose 3.48 cents to $3.3944 a gallon last week, according to Lundberg Survey Inc.[vii]

Postage rates jumped Sunday for the first time in two and a half years as the U.S. Postal Service hopes to generate more revenue amid historic losses. First-class postage stamps now cost 45 cents each; a price jump that officials anticipate will generate an additional $888 million in annual revenue.[viii]

Weekly Update – January 16, 2012 

I know you’re probably tired of hearing about the European debt crisis, and frankly don’t blame you. At risk of sounding insensitive to the struggles of our European neighbors, we’re tired of it too. While there are benefits to globalization, there are also drawbacks as evidenced by the unprecedented level of negative influenceEurope’s financial issues have had on us in recent years.

Looking at last week’s activity, you can see the affect Europeis having yet again. While all three indexes ended the week in positive territory, recent gains came at lower-than-normal trading volumes as wary investors dipped their toes in the water, but were afraid to dive in.[i] Stocks finished in the red Friday on expectations that nine Eurozone nations would be downgraded by S&P (and they were shortly after trading hours), including AAA-rated France and Austria. Italy was lowered two notches to BBB+, dangerously close to junk bond levels that could make it even more difficult for the government to raise money.[ii]

European Debt Report Card [iii]:

France – AAA to AA+
Austria – AAA to AA+
Slovenia – AA- to A+
Slovakia – A+ to A
Spain – AA- to A
Malta – A to A-
Italy – A to BBB+
Cyprus – BBB to BB+
Portugal – BBB- to BB

While investors have been expecting this downgrade since S&P issued a warning last month, the news is still a harsh reminder that Europeis not out of the woods. It is not yet clear how hard the downgrades will hit markets, but it is likely that we will continue to feel Europe’s influence until this situation is resolved. On the bright side, leaders from Germany, Italy, and Francehave been sounding upbeat about proposed solutions.[iv] Their optimism needs to translate into concrete actions, promtly.

When any set of circumstances has the potential to affect your financial situation, I am committed to keeping you informed, please rest assured that the European debt crisis is no exception.

THE MARKETS:

Are you getting used to writing 2012 on your checks yet? The first nine days of the new year have sure flown by! After all the hustle and bustle of the holiday season, we hope you’re settling back into a normal routine, and that your first week of 2012 has been a good one.

I am happy to report that it was a good week both for stocks and positive U.S. economic news. Stocks kicked off the year on a high note as the Dow Jones industrial average as forecast added 1.2%, the S&P 500 gained 1.6%, and the Nasdaq led with a 2.7% rise. As far as the economy is concerned, employment figures and purchasing manager surveys released last week suggest the U.S. experienced healthy growth in December.

Despite positive news, the tone on Wall Street has remained cautious and trading volumes have been low. Many investors, it seems, are still torn between rising hopes for the U.S. economy, and the ever-evolving European debt saga. And there is still considerable debate over whether stronger jobs and manufacturing numbers should be attributed to a seasonal holiday binge, or something more permanent. Ultimately, only time will tell.

The week ahead promises to be a busy one as the unofficial start of corporate earnings season kicks off. We’ll wait to see what corporate leaders have to share, but overall, it is expected to be a strong season. The companies in the S&P 500 are forecast to be up 7.5% in the final three months of 2011, versus the same period one year ago, and sales are predicted to have risen 8.6% for the quarter, according to research from S&P Capital IQ. While the European debt situation will probably weigh most heavily in the headlines, it will have to share the spotlight with corporate earnings.

2012 is Underway

With one week down and 51 to go, we’re off to the races, as the old saying goes. Whatever this year brings, I look forward to running alongside you every step of the way!

Do not forget, one of the new IRS rules for 2012 increases your 401(k) contribution level to $17,000 up from $16,500. The over age 50 additional catch up remains at $5,500 per year. Increase your savings towards your retirement goal!

HEADLINES:

All three U.S. automakers are on track to be profitable in 2011 when they report results in the coming weeks. That’s something that hasn’t happened since 2004.

Gas prices in the United States increased by more than a dime over the past three weeks, the first increase seen since mid-October, according to a survey published Sunday. The average price of a gallon of regular gasoline was $3.35 as of Friday, the Lundberg Survey found. That’s an increase of 12 cents from the last survey of 2011, conducted December 16.

The U.S. added 200,000 jobs in December and the unemployment rate fell to the lowest level in nearly three years in a fresh sign the economy is picking up and businesses are more willing to hire. The increase in jobs last month was the fourth biggest gain of 2011.

2012 at a Glance

The Federal Reserve has decided to share the likely path of interest rates, according to minutes of its December 13 meeting released Tuesday. Starting in January, the Fed will release the range of Federal Open Market Committee member forecasts of the appropriate level on the target federal funds rate in the fourth quarter of the current year and the next few years.

ECONOMIC CALENDAR UPCOMING 2012:

Monday – Consumer Credit

Tuesday – Redbook, Wholesale Trade

Wednesday – EIA Petroleum Status Report, Beige Book

Thursday – Jobless Claims, Retail Sales, Business Inventories, Treasury Budget

Friday – International Trade, Import and Export Prices, Consumer Sentiment

Performance

Data as of 01/06/2012                    1-Week                                YTD        1-Year                   5-Year                   10-Year

Standard & Poor’s 500                    1.61                        1.61        0.31                        -1.87                      0.90

Dow                                                       1.17                        1.17        5.66                        -0.06                      2.05

NASDAQ                                              2.65                        2.65        -1.32                      1.97                        2.99

MSCI EAFE                                          -0.77                      -0.77      -11.9                      -4.53                      1.84

10-year Treasury Note (Yield Only)          1.87        N/A        3.42                        4.65                        5.15

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, Google Finance, Barron’s, djindexes.com, MSCI Barra. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not available.

“All glory comes from daring to begin.” – Eugene F. Ware

Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the “Forward email” link below. We love being introduced!

Lift Weights

While exercising, don’t forget to include a measure of strength training, involving both your upper and lower body. Too many people neglect resistance exercise, particularly women for whom it’s crucial for preventing muscle and bone loss with age. Lift weights for at least 20 minutes, two to three times per week.[i]

Try Natural Detergents

Many natural detergents today are made to clean clothes just as effectively in cooler water temperatures. Choose detergents and other laundry products that are plant-based, concentrated and biodegradable.[ii]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

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 Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

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.

Google 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.

These are not necessarily the views of the Broker/Dealer, and should not be construed as investment advice. Neither Erin Carper nor the Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

1 http://www.google.com/finance

2 http://money.cnn.com/2012/01/08/markets/stocks_lookahead/index.htm

http://www.marketwatch.com/story/latest-data-fails-to-shake-caution-on-us-economy-2012-01-08

3 http://money.cnn.com/2012/01/08/markets/stocks_lookahead/index.htm

4 http://money.cnn.com/2012/01/05/news/companies/auto_industry_profits/index.htm?iid=HP_LN

5 http://money.cnn.com/2012/01/08/news/economy/gas_prices.cnnw/index.htm?iid=HP_LN

6 http://www.marketwatch.com/story/us-gains-200000-jobs-in-december-2012-01-06?link=MW_story_insert

7 http://www.marketwatch.com/story/fed-to-map-out-each-members-rate-forecast-2012-01-03?link=MW_story_insert

8 http://www.boston.com/lifestyle/food/gallery/healthtips?pg=2

9 http://www.thedailygreen.com/environmental-news/latest/green-new-years-resolutions-10109

Erin Carper, CERTIFIED FINANCIAL PLANNER™ and Investment Advisor Representative. Securities and investment advisory services are offered solely through Ameritas Investment Corp. (AIC), member FINRA/ SIPC. AIC and Carper Wealth Management, LLC are not affiliated. Additional products and services may be available through Erin Carper or Carper Wealth Management that are not offered through AIC.

E-Mail: erin@carperwealthmanagement.com

________________________________________

Trades cannot be communicated to your registered representative by e-mail, fax or regular mail since the transaction cannot be executed on a timely basis. Please contact your registered representative by telephone to request trades. Registered Representatives of Ameritas Investment Corp. do not provide tax or legal advice. Please consult with your tax advisor or attorney regarding your situation. Performance quoted does not guarantee future results. Please refer to your regular periodic statement for complete information. This e-mail is from a Registered Representative with Ameritas Investment Corp. (AIC), Member FINRA and SIPC or their assistant. Do NOT use e-mail to send us confidential information, to execute a securities transaction, or send time-sensitive instructions. Your e-mail message is not private in that regulations require it to be subject to review by AIC. If you are not the intended recipient and have received this e-mail in error, please contact the sender immediately and delete this material from your computer.

Americans are spending again, as evidenced by a record-breaking holiday shopping season.[i] Factories are producing more.[ii] Companies are generating impressive profits.[iii] The housing market is showing signs of life.[iv] And with the unemployment rate at its lowest level in nearly three years[v], even the job market is improving. While blind optimism can be a dangerous thing, focusing on the negative can be equally risky. So without amplifying the problems of the past or minimizing the challenges of the future, let’s take a look back at some of the key events that made 2011 what it was.

2011 Events: A Year in Review

Japan Quake Shakes Markets (March)
The devastating earthquake and consequent tsunamis that hit Japan in March riled global markets. The Japan earthquake sent the Nikkei Index on a downward spiral, and the U.S. stock market soon followed. The auto industry lost ground as Japanese manufactures were forced to halt production due to power outages.[vi]

Budget Problems Almost Result in Shutdown (April)
Well into April, the 2011 budget had still not been approved by Congress. Instead, lawmakers passed six short-term spending bills through March. The final extension was set to expire on April 8^th, forcing Congress to come to a budget agreement or face a shutdown. Had a shutdown occurred, Americans would have faced grievous consequences, and nervous investors felt the pressure.[vii]

Osama Bin Laden’s Death Rallies Markets (May)
Following the death of Osama Bin Laden at the hands of U.S. forces in Abbottabad, the stock market opened significantly higher. President Obama called Bin Laden’s death “the most significant achievement to date in our nation’s effort to defeat al Qaeda.” The Dow Jones industrial average rose 56 points (0.5%), the S&P 500 climbed 5 points (0.4%), and the Nasdaq Composite gained 8 points (0.3%).[viii]

U.S Government Risks Defaulting on Debt (July)
After the U.S. debt ceiling was reached in May, the government was forced to find a solution or risk default on August 2. Though congress had over 11 weeks to come to an agreement, things came down to the wire once again as lawmakers argued over solutions, leaving financial markets on edge.[ix]

S&P Downgrades the United State’s Credit Rating (August)
In what was perhaps the most humiliating news of the year, Standard and Poor’s decided to downgrade the U.S. credit rating from AAA to AA+, which marked the first U.S. credit downgrade in history. This downgrade hit stock prices hard, and the long term consequences of S&P’s move are yet to be known.[x]

Occupy Movement Begins (September)
Activists began gathering in New York City’s Financial district on September 17^th to protest social and economic inequality, high unemployment, greed, corruption, and the influence of corporations on government. The protests in New York City have sparked similar protests around the world. News surrounding this movement has been a regular feature of recent headlines.[xi]

A Note About Equities
U.S. stocks slid on the final trading day of the year, with the S&P 500 surrendering its 2011 gain and settling virtually flat for the year at -0.04%. The Dow Jones industrial average ended the year up 5.5%, its second consecutive yearly rise, and the Nasdaq composite index finished down 1.8% for its first annual loss since 2008.[xii] Despite disappointing equity returns in 2011, the last three months of the year were positive, which could bode well for 2012. The S&P 500 rose 11% in the fourth quarter, and the Dow climbed 12% for its largest quarterly point gain in its history. On the bright side, stocks seem to be well-priced. The S&P 500 is trading at 12 times its expected earnings per share versus a more typical 15 times. In other words, stocks appear cheaper than normal right now.[xiii]

In Conclusion
What is in store for 2012? The answer to that question will depend on who you ask, and where they’re looking. At the end of the day, no one has a crystal ball that can be relied upon, and we should not be so arrogant as to make predictions. The indicators we are watching offer both positive and negative signs and many questions remain to be answered. How willEurope sort out its debt troubles? WillU.S. lawmakers raise the debt ceiling again in 2012? Will they extend the Bush Era tax cuts? How willChina’s slowing economy affect the world? The answers to these questions and more like them have the potential to affect financial markets.

All in all, 2012 is beginning on a more positive note than many investors could have predicted given the challenges of 2011. And while we hope the economy and the stock market maintains its positive momentum, history teaches us that ups and downs are part of life. Whatever we face in the year ahead, rest assured that we will maintain a watchful eye on any factors that have the potential to affect you. May a bright and prosperous 2012 be yours!