The document discusses how the stock market rose last week due to stronger-than-expected jobs data, but that one month of good data does not make a trend and additional Fed stimulus is not guaranteed. It also notes that the 24 hours before Fed announcements have accounted for 80% of stock market returns since 1994, though this anomaly cannot reliably be profited from. The weekly newsletter then provides tips and recipes.

1. Weekly Commentary
August 6, 2012
The Markets
Despite disappointment that central banks in the U.S. and Europe offered no new
stimulus programs last week, the U.S. stock market rose for the fourth straight week -
thanks to one piece of government news, according to Bloomberg.
This particular piece of news is released on the first Friday of each month and
investors eagerly await its arrival as it has the potential to move markets. In fact, this
news is so sensitive that news reporters are locked up in the Frances Perkins building
in Washington, D.C. for 30 minutes prior to its release with absolutely no contact with
the outside world. The reporters have 30 minutes to review the report, ask questions,
write their story, and then precisely at 8:30 a.m., the government opens the
communication gate and the news hits the world.
And, so, last Friday morning, the government released its Employment Situation
Report. Within seconds, it was clear that the increase in the number of new nonfarm
payroll jobs created in July was much higher than expected and the stock market
unleashed a powerful rally, according to MarketWatch. Since employment leads to
economic activity, investors pour over this report for clues to the direction of the
economy.
Now, here's where it gets interesting. The data was stronger than expected, but it
wasn't strong enough to prevent the Federal Reserve from adding more monetary
stimulus later this year, according to some economists as reported by MarketWatch. In
other words, some folks interpreted this as meaning we could have modest economic
growth and more monetary stimulus. That's like a double shot of espresso for the
markets.
This is great, right? Unfortunately, it's not that simple. One month of good employment
data does not make a trend and additional stimulus from the Fed is not guaranteed.
Even if additional stimulus comes, it could backfire if the market perceives it as too
little, too much, or not the right kind. In the end, we're still left with the hard work of
analyzing the economy, the investment opportunities, and doing the best job we can to
help you navigate this uncertain environment.

2. IS THERE A PARTICULAR 24-HOUR PERIOD IN THE STOCK MARKET that is
more important to future stock market returns than any other 24-hour period? Since we
asked the question, you might have guessed that the answer is yes.
For many years, the Federal Reserve's (Fed) monetary policy-making body, called the
Federal Open Market Committee (FOMC), has convened at pre-scheduled meetings
eight times per year. During these meetings, "The Committee reviews economic and
financial conditions, determines the appropriate stance of monetary policy, and
assesses the risks to its long-run goals of price stability and sustainable economic
growth," according to the Fed's website. And, since 1994, the policy decisions from
these meetings have been announced to the public at known times.
Two months ago, the Federal Reserve Bank of New York released a study which
contained a startling conclusion. The researchers discovered that, "a staggering 80
percent of the annual U.S. equity premium since 1994 was earned in the 24 hours
before FOMC announcements." Further, if you extend the period to three days, i.e.,
from the day before the announcement to the day after the announcement, the study
shows that effectively 100 percent of the return in the S&P 500 index since 1994 has
come from this 3-day window encapsulating the FOMC announcement. And, to put it
in even more perspective, Yahoo! Finance said, "This pre-FOMC drift has pumped the
S&P 500 more than 50 percent higher than it would be without the gains made in the
24-hour period before Fed statements."
Hmm.
So, how does the Fed explain this anomaly? They end their research paper by saying,
"As of this paper's writing, the pre-FOMC announcement drift is a puzzle."
Now that this anomaly is known, is there a way to profit from it? Probably not. For one
thing, the frequent trading required to capture these gains and then move to cash until
the next meeting would be expensive and tax inefficient. And, second, now that the
strategy is known, it will likely disappear as investors try to "game" it.
Well, at least we know our tax dollars are hard at work paying researchers to come up
with interesting market studies!
Weekly Focus - Think About It...
Adversity, if you allow it to, will fortify you and make you the best you can be.
--Kerri Walsh, Olympic Gold Medal Champion
GOLF TIP OF THE WEEK:

3. Know the Grain
Most golfers can gauge the slope and speed of a green, but typically fail to determine
grain. Check for grain at the cup. Usually, one side of the cup will be ruffled, and the
other, smooth. Toward the smooth side is the direction of the grain. Uphill putts into
the grain will have to be struck more firmly; downhill putts with the grain need a softer
touch.
INVESTMENT TIP OF THE WEEK:
Rollover your 401(k) plan into an IRA if you have separated from service from
your employer.
If you are able to rollover a qualified retirement plan such as a 401(k) or 403 (b) plan,
you should strongly consider it.
Once you are no longer working for the employer where you established your
company retirement plan, you are able to leave it with the employer for a certain
amount of time, depending on the rules of the plan, you can also take the assets and
roll that into your new employer's plan, or you can roll the assets into an IRA.
By rolling the assets into an IRA, you now have access to thousands of investment
vehicles that you don't have access to in a company sponsored retirement plan, you
have access to asset classes that you did not have access to in the company
retirement plan, and you also have access to asset management strategies that you
did not have access to before.
What you may not realize is that many of these investment options that you now have
access to have significantly lower fees than the mutual funds available in most
employer sponsored retirement plans.
If you would like more information about IRA Rollovers or if you would like to know if
this option is suitable for your personal situation, give Tom Vilord a call at 856-227-
2288.
RECIPE OF THE WEEK:

4. Peach and Raspberry Parfait
You're just five ingredients and five minutes away from this delicious dessert.
Recipe from RealSimple.com.
Ingredients:
2 peaches cut into 2 1/2-inch pieces
1 1/2 cups raspberries
2 tablespoons sugar
1 tablespoon fresh lemon juice
1 pint vanilla ice cream
Directions:
In a large bowl, combine the peaches, raspberries, sugar, and lemon juice and let sit,
for 20 minutes, tossing once.
Scoop the ice cream into bowls or glasses and top with the fruit mixture.
HEALTH TIP OF THE WEEK:
Quick Daily Exercise
It can be difficult to get into a workout groove, but use these tips to help you minimize
resistance and get yourself moving.
When you're having a low-energy day, tell yourself you only have to exercise for ten
minutes. That'll get you moving and once you're in the groove, you'll usually want to
finish your workout.
Start a friendly workout group for walking, running, or gym training. The peer pressure
and camaraderie will help you overcome resistance and do wonders for your

5. motivation.
Make your workouts convenient by scheduling it for a time of day when you typically
feel energetic. Have a gym bag packed and ready to go in your car or by the door.
After a good workout, jot down a few sentences about how great you feel and use it for
motivation the next time you don't feel like exercising.
GREEN TIP OF THE WEEK:
Clean Air
Dust with a damp cloth to prevent household dust, which may contain toxins, from
being stirred back into the air.
Aerosol chemicals produce droplets which can remain in the air (and be inhaled) even
hours later. Hand-powered sprays or those applied with a rag may be best.
Use chlorine-free dishwashing detergent. The hot water in a dishwashing cycle can
easily vaporize chlorine, releasing it into your home's air.
Occasionally air out your house to blow away air pollutants and naturally freshen your
home.
Sincerely,
Tom Vilord
President
Vilord Wealth Advisors
Washington Professional Campus II
901 Route 168 - Suite 410
Turnersville, NJ 08012
877-VILORD1
856-227-2288
info@VilordWealth.com
www.vilordwealth.com