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MIDLAND, MI
PERMIT NO. 181
P.O. BOX 2043
Midland, MI 48641-2043
4912 Mac St. Midland, MI 48640 www.greatlakesinvestmentadvisors.com (989) 835-7203
“YOUR MONEY MATTERS”
QUARTERLY NEWS LETTER
**VISIT WWW.GREATLAKESINVESTMENTADVISORS.COM FOR THE ANSWER
2. NADCY
OOOOO
3. OEFTNHEFRU
OOOOOOOOOO
4. IKPN
OOOO
5. ORWAR
OOOOO
6. OTHCAELOC
OOOOOOOO
7. AERHT
OOOOO
8. NIDERSF
OOOOOOO
INSIDE THIS ISSUE:
Friends & Families,
Every year during the holidays, we try to take some time away
from the office, and all the hustle and bustle, to spend some quality time
with our families. Upon returning to the office, refreshed and ready for a
new year, we find ourselves looking back at 2014. It had its fair share of
laughs and mishaps, but overall… it was a very good year for all of us.
Terri ʻfought like a womanʼ and beat the big ʻCʼ, Carl turned 70, Jason
turned 40 and we added Tammy to our team… just to name a few!
Most importantly, our thoughts are of you! Families that put their
faith and trust in hiring us to serve them. How blessed we are for that
opportunity! We THANK YOU and want you to know… you will always
be a part of our family.
From our family to yours, have a happy, safe, prosperous and
healthy 2015!
Warm Regards,
Carl & Jason
9. OELV
QUOTE
PAGE 3
“FUN FACTS ABOUT FEBRUARY” CONT.
RECEIPE CORNER
PAGE 4
“GLOBAL FINANCIAL – QUARTER 4
2014”
PAGE 5
“GLOBAL FINANCIAL – QUARTER 4
2014” – CONT.
CARTOON
PAGE 6
MARK YOUR CALENDARS
PAGE 7
GRADIENT INVESTMENTS – YEAR
END 2014
PAGE 8
OOOOOOOOO
**VISIT WWW.GREATLAKESINVESTMENTADVISORS.COM FOR THE ANSWERS.
“FUN FACTS ABOUT FEBRUARY”
BY THE NUMBERS
OOOO
WILL YOU BE MY ________________ ?
PAGE 2
VIP AMBASSADOR
UPCOMING EVENTS
8. NIDERSF
7. AERHT
6. OTHCAELOC
5. ORWAR
OOOOOOO
OOOOO
OOOOOOOO
OOOOO
OOOO
4. IKPN
3. OEFTNHEFRU
2. NADCY
OOOOOOOOOO
OOOOO
1. EPAILCS
OOOOOOO
WORD SCRAMBLE – VALENTINE’S DAY
Please visit our website
www.greatlakesinvestmentadvisors.com
OR call our office (989) 835-7203 for a current schedule.
OOOOOOO
1. EPAILCS
Retirement: You Only Get One Chance
Apple Mountain - Saginaw
Dinner Seminar:
March 10th
Bavarian Inn Restaurant - Frankenmuth
Dinner Seminar:
March 11th
Franklin Inn – Bad Axe
Dinner Seminar:
March 12th
H Hotel - Midland
Lunch or Dinner Seminar:
April 21st
Riverwalk Place - Gladwin
Lunch or Dinner Seminar:
April 22nd
OOOO
9. OELV
Library Lunch & Learn
Grace A Dow Memorial Library
February 26th
WORD SCRAMBLE – VALENTINE’S DAY
Library Lunch & Learn
Grace A Dow Memorial Library
February 26th
OOOOOOOOO
Retirement: You Only Get One Chance
Apple Mountain - Saginaw
Dinner Seminar:
March 10th
Bavarian Inn Restaurant - Frankenmuth
Dinner Seminar:
March 11th
Franklin Inn – Bad Axe
Dinner Seminar:
March 12th
H Hotel - Midland
Lunch or Dinner Seminar:
April 21st
Riverwalk Place - Gladwin
Lunch or Dinner Seminar:
April 22nd
Please visit our website
www.greatlakesinvestmentadvisors.com
OR call our office (989) 835-7203 for a current schedule.
WILL YOU BE MY ________________ ?
UPCOMING EVENTS
8
JANUARY 2015
UPCOMING EVENTS
“PUTTING YOUR BEST INTEREST FIRST”
WORD SCRAMBLE
2
7
FUN FACTS ABOUT FEBRUARY
POSTED: 02/05/2014 02:55:20 PM MST
The Romans developed a 10 month calendar that began with the spring equinox in March and ended in
December.
There is belief that what is now February was overlooked when this
calendar was created, as winter weather had little to do with the
harvest in the northern hemisphere, where Rome is located.
Romans essentially considered the winter a period of time with no
distinctive months.
When the second king of Rome, Numa Pompilius, took to the
throne in 713 BC, he had plans to make the calendar more
accurate by synchronizing it with the actual lunar year, which is
roughly 354 days long.
Thus, two new months, January and February, were added to the end of the calendar.
Both January and February had 28 days.
At the time, even numbers were considered bad luck, and these months were not looked upon favorably by the
king.
So he decided to make changes once more and added a day to January to make it 29 days long.
February was left untouched, remaining an "unlucky" month and one devoted to honoring the dead and
performing rites of purification, as the word February comes from februare, which means "to purify."
February remained the last month of the year for roughly 200 years until the calendar was reevaluated and
February was reassigned as the second month, with January being the start of the new year.
This new 355-day calendar simply could not stay in sync with the seasons because it did not account for the
amount of time it takes the Earth to orbit the sun.
Therefore, an extra "month" of 27 days was added after Feb. 23 each year to play catch-up.
Sometimes this extra month was overlooked or not scheduled in time, continuing the calendar conundrum.
Julius Caesar was responsible for tackling calendar problems further when he was in power.
He wished to make the calendar solar-based, like the one Egyptians used, instead of the older lunar-based
calendar.
Wide diversification is only
required when investors
do not understand what
they are doing.
(~ Warren Buffett)
This led to the creation of the Julian calendar. Ten days were
added to the calendar year in various months, and February was
increased every four years (leap year) to 29 days to coordinate the
calendar year to the solar cycle of roughly 365.2425 days.
February remains the shortest month of the year.
Through the years there has been no widespread attempt to
reorganize the calendar once more to even out the months and
give extra time to February.
As a result of the shorter number of days, February has some
unique attributes.
In common years, February can pass without a single full moon.
GRADIENT INVESTMENTS, LLC
MARKET COMMENTARY
INVESTING CAN BE A CHALLENGING YET REWARDING PROCESS. INFORMATION CHANGES RAPIDLY WHICH IS
WHY IT IS SO IMPORTANT TO STAY INFORMED. PLEASE ENJOY OUR LATEST MARKET COMMENTARY.
YEAR END - 2014
January 2, 2015
The end of the year provides an opportunity to reflect upon last yearʼs expectations, analyze the facts, and establish new
market expectations. One caveat in this annual ritual is that stocks, bonds and commodities will travel their own path
regardless of what the prognosticators claim. The noise coming from the bulls and bears will be even louder this year and
it will be critical for investors to check their emotions at the door and begin to focus on those things under their control.
Before worrying about where the market is going, analyze where your financial plan is headed. Things like asset allocation,
diversification, risk, savings, spending, income, growth, and principal preservation matter greatly. Controlling the things
under your control will lead to better long-term financial decisions.
Entering 2014 we expected stocks to produce high single digit returns with seven percent corporate earnings growth, a two
percent dividend yield with valuations (price/earnings ratios) remaining constant. At the end of the day, the stock market
generally delivered. The S&P 500 exceed expectations gaining 13.7 percent with a small valuation increase. The Dow
Jones Industrial Average was up 10.0 percent while the more volatile NASDAQ gained 14.7 percent. International stocks
once again underperformed as slower economic and profit growth in those markets generated flat to slightly negative
results.
Entering 2014 we expected bonds to earn their coupon generating returns in the low single digits. On average, this was
true but the sectors within the bond market produced an unexpected wide dispersion of outcomes. The yield curve
flattened as short-term interest rates were locked in near zero and yields on seven, ten and thirty year bonds declined
causing U.S. Treasury prices to rise. The twenty plus year Treasury Index posted equity type returns of 25.1 percent. The
high yield corporate bond segment of the bond market surrendered to a 40 percent decline in oil prices as credit default
concerns heightened. High yield bonds still posted a 2.5 percent gain for the year.
So where does this leave the markets for 2015? Stock valuations are currently stretched a bit and fourth quarter earnings
announcements are the key to maintaining the positive price momentum. Expect greater volatility in the coming year as oil
price changes impact both stock and bond markets and economic recovery or recession in Europe will play a major role in
the market direction. As always, geopolitical events will add to sudden price movements. We expect corporate earnings to
grow at five to six percent. This coupled with a two percent dividend yield and moderate decline in price earnings ratios
lead us to a return expectation of six to seven percent in stocks next year. Market corrections should be viewed as buying
opportunities as we believe this is a long-term secular bull market.
Bond yields are low and likely to stay here for an extending period of time. The yield on the ten year U.S. Treasury note is
1.64 percent higher than the German ten year Bund. It has been fifteen years since this spread was this wide. Expect long
U.S. Treasury yields to continue their move lower. The Federal Reserve remains dovish and the economic environment will
continue to provide cover for their current policies. Expect short rates to stay low for the first half and maybe 25 basis
points higher in the second half of the year. Two to four percent are fair bond return expectations for 2015.
Commitment to your financial plan while keeping market driven emotions removed from financial decision making process
will make or break individual results this year. Remove the emotional panic button from the investment equation. When we
get the ten percent price decline, think buy more versus running to cash. The long-term investor will be rewarded. Embrace
your financial plan and stay for the long haul.
MARKETS BY THE NUMBERS:
6
The next time this will happen is in 2018.
MARK YOUR CALENDARS
LUNCH & DINNER SEMINARS
LIBRARY LUNCH & LEARN
An hour and a half presentation on key
financial concerns for those approaching
retirement and those into retirement,
followed by a delicious, upscale meal.
An hour interactive round-table discussion
over lunch to discuss the quarterly reviews
of our top money managers: Global
Financial Private Capital & Gradient
Investments.
March 10 & 11 & 12
April 21 & 22
June 2 & 3
July 22 & 23
August 25 & 26
October 13 & 14
November 11 & 12
February 26
May 14
September 9
December 2
GOLF LUNCH & LEARNS
FAMILY APPRECIATION & AMBASSADOR EVENTS
An hour presentation during lunch on a few key financial
concerns facing those approaching and into retirement,
followed by a round of golf at an upscale golf course.
Womenʼs Valentine Luncheon, February 13*
June GLIA Invitational Golf Scramble
Family Fun Day at Loonʼs Baseball Game, August 7
October Wine/Color Tour*
June 23 & 25
July 7 & 9
August 11 & 13
*Some events by invitation only. See VIP Ambassador section below.
**Event days and times are subject to change. Please visit our website www.greatlakesinvestmentadvisors.com
OR call our office (989)835-7203 for a current schedule.
VIP AMBASSADOR
How do you become a VIP Ambassador? It is rather simple. Any family who
introduces a friend, family member or a loved one to our family can become a
member of the VIP Ambassador program.
By becoming an ambassador you are entitled to the following benefits:
 Access to exclusive, Ambassador events.
 Special VIP recognition at events.
 Informative resources on topics of interest such as travel, golf,
gardening, and more.
Not sure where to start? If you ever hear of a friend or loved one in any of the
following situations:
 Retired or retiring soon from their job.
 Complaining about the low CD rates and/or investment
performance.
 Concerned about a repeat of 2008.
BY THE NUMBERS
SUPER BOWL
Super Bowl Sunday is the
second highest day of
food consumption after
Thanksgiving.
SOURCE:
Once every six years, February is the only month that has
four, full seven-day weeks.
February starts on the same day of the week as March and
November in common years, and on the same day of the
week as August on leap years.
February ends on the same day of the week as October
every year.
In leap years, it is the only month that begins and ends on
the same weekday.
People born on a leap year technically celebrate their
birthday only once every four years, but most observe it on
the 28th.
Celebrities born on Feb. 29 include Tony Robbins, Antonio
Sabato, Jr., Mervyn Warren, and Dennis Farina.
Despite its status as the shortest month, February is packed
with many events, including Valentine's Day and
Groundhog's Day.
Americans celebrate the birth of two presidents in February,
as well as Black History Month.
Mexicans celebrate Flag Day in February, while residents of
St. Lucia celebrate their Independence Day.
February is also a time for families, especially in Canada,
where Family Day is celebrated on the third Monday of the
month in many provinces.
February is also an important month for sports fans, as two
teams face each other in the Super Bowl on the first Sunday
of February.
No one really knows for certain why February was relegated
to the shortest month.
However, with so much trivia and special events surrounding
the month, it is still a special time of year.
(source: www.burlington-record.com)
RECIPE CORNER
Split Pea Soup
This hearty soup is great for a blistery
winter day, just ask Terri and Jason
from our office!
Yield: 6-8 servings
Prep Time: 15 min
Cook Time: 2 hrs
INGREDIENTS:











2¼
cups of dried split peas
2 quarts of cold water
1 ½ pounds of ham bone
2 onions thinly sliced
½ teaspoon salt
¼ teaspoon of ground black pepper
1 pinch of dried marjoram
3 stalks of celery, chopped
3 carrots, chopped
1 potato, diced
DIRECTIONS:
1. In a large stock pot, cover peas with 2
quarts cold water and soak overnight.
If you need a faster method, simmer
the peas gently for 2 minutes, and
then soak for l hour.
2. Once peas are soaked, add ham bone,
onion, salt, pepper and marjoram.
Cover, bring to boil and then simmer
for 1 1/2 hours, stirring occasionally.
3. Remove bone; cut off meat, dice and
return meat to soup. Add celery,
carrots and potatoes. Cook slowly,
uncovered for 30 to 40 minutes, or
until vegetables are tender.
(Source: www.allrecipes.com)
HTTP://NEWSONE.COM/2857949/SUP
ER-BOWL-FACTS/
VALENTINEʼS DAY
Please, just pass their name and number along to us after telling them how we
made a difference in your life.
An estimated of 224
million roses are grown
for Valentine's Day.
There is no greater compliment that you can give our company than an
introduction to your family and friends!
HTTP://WWW.CNN.COM/2013/02/13/LI
Please call the office today for more details on how to become a VIP
Ambassador for!
3
SOURCE:
VING/VALENTINES-DAY-STATISTICSBTN/
Fee based financial planning and investment advisory services are offered by "Great Lakes Investment Advisors, Inc." a Registered Investment
Advisor Firm in the state of Michigan. Insurance products and services are offered through "Great Lakes Financial Freedom Group, Inc."
Great Lakes Investment Advisors, Inc. and Great Lakes Financial Freedom Group, Inc. are affiliated companies.
This newsletter has information believed to be reliable, but is not guaranteed to be true and accurate. The information contained within is for general
information only and should not be considered a recommendation of any particular product or service.
Global Financial Private Capital, Gradient Investments and Great Lakes Investment Advisors, Inc. are not affiliated companies.
4
GLOBAL FINANCIAL PRIVATE CAPITAL
QUARTER 4 2014
MARKET REVIEW & OUTLOOK
14 for 2014
Last year did not disappoint when it came to drama in global financial markets. Investors were forced to endure some
pretty big swings in asset prices, and those who require income from their investments learned that generating yield
became harder instead of easier as the year progressed. In fact, the U.S. has not seen an income environment like this
in over 90 years!
However, the S&P 500 returned a respectable 13.5% by reaching all-time highs after each and every dip. This price
action is incredibly important to a long term investor because itʼs a sign that we are not the only bulls out there. Other
large institutional money managers seem to be doing exactly what we love to do, and that is to profit from the fear and
panic of others.
In an attempt to recap such a crazy year, here are my 14 key takeaways from 2014.
Asset Class Returns Were Mixed
1. Demand unexpectedly surged for Treasuries, sending the 10-year yield down to 2% and driving 30-year
Treasuries up over 30% in price.
2. Gold proved once again that it is not a real investment, but rather a store of value. Oh and that “store” lost even
more value by booking losses now for two consecutive years.
3. Oil prices were decimated as U.S. supplies surged and Saudi Arabia refused to cut production. The Saudis
claim that they are protecting their market share, but conspiracy theories are dominating headlines. One claims
that they are punishing Russia for supporting Syria (Saudi Arabia and Syria donʼt get along). Another accuses
them of driving prices lower to see what price will force U.S. producers to stop producing.
4. Small cap stocks were whipsawed as internet and biotech stocks had their day of reckoning. The selloff
reminded us of the dangers of owning overvalued stocks.
5. Buying on dips in the S&P 500 paid every single time the index fell more than 3%, proving once again that
volatility in equities is a long-term investorʼs best friend.
6. Cash investments continued to erode investor purchasing power as the yields on these products failed to
exceed inflation for the 6th year in a row.
Fear and Panic Lost Money
7. In September, Ebola landed in the U.S. and was on track to kill every organism on the planet (according to the
media, not even bacteria was expected to survive). Panic selling became the best defense against the virus.
However, this played out like every other pandemic scare, and became one of the best buying opportunities of
the year.
8. ISIS became the predominant threat in the Middle East, and they represent a true danger to the region.
However, oil price spikes which were once an expected byproduct of Middle East unrest are no longer thanks to
U.S. shale fracking.
9. Despite the media hype, we failed to see a widespread correction in stocks. They were unaware that history
has shown that stocks can rise for many years without corrections.
10. Despite all the geopolitical shocks, which really felt like there were more than normal in 2014, not a single one
materially impacted economic data in the U.S.
The Global Economy Limped Along
11. Argentina defaulted yet again, which was one of the wildest stories of the year. Why? Because they went to
battle against a mere hedge fund in New York City and lost.
12. Venezuela battled 40%+ inflation, which caused food shortages and widespread violence. Weak oil prices
have made life worse for this energy export-driven economy.
13. China is now learning to cope with lower GDP growth. Stimulus ultimately failed to smooth the transition from
an export-driven economy to a consumer-driven one.
14. Emerging markets were mixed. Chinaʼs Shanghai composite surged over 50%, Indiaʼs Sensex delivered over
30%, but Russiaʼs RTS index took last place by losing over 40%.
5
No question it was a wild ride, but one common theme that
prevailed was that all of this madness was not powerful enough
to derail the U.S. economy. Quite the contrary, the economic
data released throughout the year simply confirmed our belief
that we will continue to grow at a slow and steady pace for the
next several years.
15 for 2015
As we begin the New Year, investors have now shifted their
focus onto what to expect over the next twelve months, so here
are my 15 predictions for 2015. This list can be used as a
“cheat sheet” to get a broad overview of where we see profit
and risk in the coming year.
Opportunity Is Everywhere
1. Cheap energy will benefit our economy more than hurt
(source: www.newyorker.com)
it. Consumers will reallocate the money that was once
spent at the pump towards bigger discretionary
purchases.
2. The U.S. will continue to create more manufacturing jobs, despite the strong dollar, thanks to cheap electricity
costs, a productive workforce, and less regulation.
3. The U.S. economy will maintain its 3% growth rate, and operating margins will rise even higher thanks to better
technology and cheap energy.
4. U.S. Treasuries will remain attractive on a relative basis to countries like Germany and Japan, and larger tax
revenues here will lower the rate of new debt issuance.
5. Inflation will remain below the Fedʼs 2% target. Hence, the Fed will have little incentive to raise interest rates in
2015, or until inflation rises from this anemic level.
6. Mergers and acquisitions will continue to fuel equities as companies take advantage of cheap debt and an
improving economy to buy up competitors.
7. Although highly volatile, select sectors in energy, broad European indices, and even Russia present
opportunities for big gains to those investors who can be patient.
Challenges Still Remain
8. Income seekers will continue to require active management to find attractive risk-adjusted income and avoid the
dangers of owning overvalued assets.
9. The Euro will continue its slide and reach parity with the U.S. dollar. Therefore, start planning that European
vacation for 2015 because hotels in Paris are expensive.
10. The Eurozone will not fall apart, but the risk of deflation is real. The European Central Bank will try Quantitative
Easing, but it will not have the same effect as it did here.
11. China will spend like drunken sailors in an attempt to keep their economy growing over 7%, because
communism needs low unemployment to prevent civil unrest.
Keep Your Emotions in Check
12. Volatility spikes will persist as geopolitical tensions rise across the globe. However, not one of these events will
drive the U.S. economy into an extended recessionary period.
13. Greed will rear its ugly head as retirees seek larger returns. Advisors will be busier than normal explaining the
importance of consistent returns vs. swinging for the fences.
14. Gold will generate no sales, earnings, or cash flow, and it will not increase its dividend above the current 0.0%.
Thus it will remain a store of value and not a real investment.
15. The world will not end.
Admittedly the last two are layups, and if I am wrong and the world does end, then all of these predictions are
meaningless anyway. In any event, thank you for your continued support and Happy New Year!
Mike Sorrentino, CFA
(source: www.burlington-record.com)