As a result, America is experiencing what Brian Wesbury refers to “post-traumatic stress disorder.”

However, Wesbury, chief economist at First Trust Advisors, tells us “don’t let the pessimists scare you away.” In a recent “Wesbury 101,” he shares a bit of history and tells us why last month’s numbers don’t signal the start of a new direction for the economy.

Click here to view it.

Inflation can be a big threat to your plans if it isn’t taken into account early in the planning process. Consider an example from a recent article published on Yahoo! Finance:

“…imagine you started planning for retirement in 1980 based on the assumption that you'd need $350,000 to retire in 2013. Now it's 2013, and you've saved $350,000. Can you retire? Well, because of inflation, it will take $1,000,000 in 2013 to buy what $350,000 would have bought in 1980. So you can only retire in 2013 if your original goal took inflation into account--or else you'll really need to lower your retirement expectations.”

Click here to read the entire article.

This short video, produced by Franklin Templeton Investments, shows us that this mentality has been around for quite a while - at least since the 17th century.

It also shows why following the crowd during any investing bubble, from the tulip bulb craze of the 1600s to the dot-com bubble of the late 1990s to the more recent bubble in real estate, is never a good idea.

If you have specific questions regarding an investment trend or a specific investment, please feel free to contact your Manarin Investment Counsel advisor at 402.330.1166.

http://www.youtube.com/embed/Li0no7O9zmE

The new act introduced in Illinois, discussed recently on The Santelli Exchange would require an audit trail by all retail or wholesalers for any precious metals.

This isn’t the first time the government has tried to put restrictions or monitors on gold ownership.  On April 5, 1933, President Franklin D. Roosevelt proclaimed it illegal for Americans to own any significant quantity of gold with Executive Order 6102, compelling citizens to sell their gold to the Treasury at the exchange rate of $20.67 per ounce. The Gold Reserve Act of 1934 halted the minting of all gold coins and raised the price of gold to $35 per ounce. In 1971, President Nixon took the U.S. dollar off the gold standard, and in 1974, President Ford permitted gold ownership.

More information on gold and its mark throughout the ages is in this timeline.

It will be interesting to see how this latest chapter from Illinois plays out.

Huddleston spoke to the class about Manarin Investment Counsel’s approach to investing and portfolio construction. He also shared his thoughts about today’s market challenges.

Huddleston holds a Masters of Security Analysis and Portfolio Management from Creighton University and is portfolio manager of the Lifetime Achievement Fund (LFTAX).

Yet other countries in Asia and Latin America have flourished. What are the weakest economies doing wrong? What are the strongest doing right?

Click here to find out.

The article discussed the firm’s recent move to its new location at 505 N. 210^th St., its 30^th anniversary milestone, Roland Manarin’s accomplishments over the past 30 years as well as his investment philosophy.

Click here to read the complete article!

The bad news is that the Federal Reserve has continued the aggressive expansion of the money supply while at the same time holding interest rates at low levels.

This chart reflects these actions that have taken the Federal Reserve’s balance sheet from $900 billion in assets at the end of 2007 to $3.1 trillion now.

While the Fed’s action in 2008 was the right thing to do, the continued expansion of the money supply and maintaining artificially low interest rates is doing more harm than good.  Among the issues this policy creates are:

1. As a result of low interest rates individuals are taking more risk in search of return and have created a “bond bubble."  The value of bonds will decrease as interest rates increase.

2. The lower interest rates have not created increased business activity.  While we have recovered more than all of the output lost in the recession of 2008 – 2009, the rate of growth for the past three years has been unusually slow when compared to other economic recoveries. Simply put, business activity is being held back by fiscal policy with increased regulation and taxes.

3. By stating that they intend to hold interest rates low into 2015, the Fed has removed any incentive to take action before rates start to rise.  This in itself results in slower economic activity, exactly opposite the desired result.

4. While the Fed continues to purchase $85 billion a month in United States Treasuries and mortgage-backed securities, the reserves are being held by the banks.  One reason is that the Federal Reserve is paying 25% to the banks for the reserves being held.  In addition, the regulators are requiring banks to hold higher reserves.  Without those funds moving through the economy, the velocity of money remains low and with it the rate of inflation.

5. The Fed is manipulating the market to maintain low interest rates.  They can do this for only so long before the market will revert to the mean and interest rates will rise.  The inability of the Federal Reserve to control monetary policy and the inability of Congress and the President to adapt a sustainable fiscal policy will, in all likelihood, result in an extended period of inflation.  Remember the Carter years when the money supply was increased and interest rates and inflation went up even more.

6. The current Federal Reserve policies mean that we will continue to see the boom & bust cycle in our economy.

What should we do to build or maintain our nest egg in this environment?  You have to be an owner.  Investments such as bonds, fixed annuities, certificates of deposit, and cash will lose value to inflation.  On the other hand, ownership of stocks, real estate, & businesses will increase along with inflation.  Keep a few one-tenth ounce gold coins at home.  Remember that safety is not holding onto a dollar … safety is holding on to what the dollar will buy.

Take time to attend our free Wealth Building classes and bring a friend, tune into the radio show, and check our blog at www.manarin.com.  Education is a great way to overcome fear.

Source: (http://www.businessweek.com/news/2013-02-22/fed-officials-reject-warning-losses-may-weaken-fomc-clout)