Bouchey Financial Group, Ltd. 2014 State of the Economy Presentation

State of the Economy February 6, 2014

Equity Market Performance for 2013

US Equities – Historical Comparison

Households are in a Strong Debt Position

Labor Markets Continue to Trend Positive

International Equities – Good Values

Source: J.P. Morgan

30 Year Bond Bubble

Source: J.P. Morgan

Rising Rates – Negative Impact on Bonds

Equity Asset Class Return

Volatility has increased but still in Range

Source: Bespoke Investment Group

U. S. Markets & Economy

Housing is in a Position for Growth

Source: J.P Morgan

Corporate Financial Health Very Strong

Source: J.P Morgan

Capital Expenditures in a position for Growth

Government not a drag to GDP Growth in 2014

The Energy Position Strong Tailwind for US Economy

Charles Schwab

U.S. Manufacturing Coming Back?

Charles Schwab

3 Consecutive Quarters of Manufacturing Growth

Source: Charles Schwab

Is the Market Overvalued?

S&P 500 moving into an Oversold Range

Source: Bespoke Investment Group

International

The Long-Term Story Behind Emerging Markets

International Valuations – Very Reasonable

Global Market Cap vs. GDP

The Long-Term Story Behind Emerging Markets

Fixed Income

The Problem with Bond Indices

Source: Manning & Napier

Remember Role of Bonds in the Portfolio

Inflation

What is Keeping Inflation Low?

Source: Charles Schwab

Commodities

Commodity Supercycle Over

Source: Charles Schwab

The Performance of Equities & Commodities

Secular Bull Market Relative to Gold

Source: Charles Schwab

Portfolio Perspective

The Importance of Broad Diversification

Asset Classes and the Business Cycle

Source: Manning & Napier

Disclosure

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bouchey Financial Group, Ltd.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Bouchey Financial Group, Ltd.. Please remember to contact Bouchey Financial Group, Ltd., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Bouchey Financial Group, Ltd. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Bouchey Financial Group, Ltd.’s current written disclosure statement discussing our advisory services and fees is available for review upon request.

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