Hi Everyone,

I’ve always prided myself on common sense approaches to the issues at hand. The heat must have gotten to me! I decided to relocate the Scottsdale office in July.

The good news, while I fight the weather to get settled, is that the change comes from growth. After 2 1/2 years, we needed more space down there. The home office will remain as is in Fountain Hills and we hope you can visit the new Scottsdale location after August 11th.

Changes are exciting and investors are aware that 2012 is one of those years. Let’s look at financial institutions in general and the changes they are facing . . .


Trends Affecting Financial Institutions
In an effort to increase profit margins and offset rising costs like labor, financial institutions are diversifying services leading to convergence.

Banks, insurance companies and security firms “rush toward one another and, increasingly, merge with each other to become large financial conglomerates”. ~Money and Capital Markets

I believe that a large part of our summer volatility is driven by just that. Losses like those occurring at JP Morgan Chase are unacceptable. Trends are real but not all are good and this one was brought on by the passage of the Financial Services Modernization Act (Gramm-Leach-Bliley) in 1999.

Look what can happen in just a few short years.

Investors must embrace change and new trends. They should also have the gumption to stand up to those not in their best interest. Many clients have heard me voice my opposition to investing directly into these firms at this time. I would like to see some things resolved first.

If you want to discuss or debate the pros and cons of investing in financial institutions. Let me know.

Until next week,

Susan R. Linkous

Note: All opinions expressed above are for general information only. Please consult your advisor before investing.
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