1. Tower Private Advisors
Market Outlook
2011 and Beyond

2. The Latter Part of 2011 Might Usher in a Months-long Correction
August
2011
July
2012

3. Other Little Problems We Haven’t Dealt With . . .
Quarterly Data 12/31/1922 - 12/31/2010 (Log Scale)
375.30
375 375
370 370
365 365
360 360
355 355
350 350
345 345
340 340
335 335
330 330
325 325
320
315
310
Total U.S. Debt as % of GDP 320
315
310
305 305
300 300
295 295
290 290
285 285
280 280
275 275
270 270
265 265
260 260
255 255
250 250
245 245
240 240
235 235
230 230
225 225
220 220
215 215
210 210
205 205
200 200
195 195
190 190
185 185
180 180
175 175
170 170
165 165
160 160
155 155
150 150
145 145
140 140
135 135
130 130
(E501A) 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

4. Secular Bull Markets Start from Low Valuations
Monthly Data 1/31/1871 - 1/31/2011 (Log Scale)
1307 1307
933 933
666 666
475 475
339 339
242 242
172 172
123 123
87 87
62 62
44 44
31 31
22 22
15 15
11 11
7 7
5 5
3 3
125 125
107 107
91 91
77 77
66 66
56
48
Not up here 56
48
41 41
35 35
29 29
25 25
21 21
18 18
15 15
13 13
11 11
9 9
8 8
7 7
6 Down here 6
(S664)

5. Secular Bear Market for Stocks for the Next Several Years