Kevin M. Wilson, ChFC, PhD President/CEO/CIO Dheenu Sivalingam, MBA AVP/CCO/Senior Analyst 1314 E. Superior Street Suite 2 Duluth, MN Office: Toll Free: Fax: Monthly Market Review “Superior Ideas for Investing” May 17, 2012 Ted A. Pavlovich, WMS VP Wealth Management 11

INTRODUCTION TED A. PAVLOVICH 2

BLUE WATER’S MOVE TO 1405 MEDICAL ARTS BUILDING, 324 W. SUPERIOR ST., DULUTH MN – MAY 31, CONVENIENT, FREE VALET PARKING - ACCESS THROUGH SKYWAY SYSTEM - IN-HOUSE SMALL GROUP MEETINGS (MMR) - OPEN HOUSE IN JUNE (DATE TBD) KEVIN M. WILSON 3

BRIEF SITUATION REPORT TED A. PAVLOVICH 4

5 Global Economy Slowing

GS Now Says Drop Is >4% GDP, Causing Recession 6

7 Economic Surprises Are Negative, Moving Stocks Lower

8 TBTF Banks Still Gambling and Losing

THE BEST FOREIGN STOCK VALUES IN THE NEAR TERM DHEENU V. SIVALINGAM 9

Relative Importance Of Foreign Markets Varies 10

11 The Sizes Of Foreign Markets Are A Factor

12 Market Valuations Must Be Monitored

13 Most Indexes Have Declined For A Year, So Cheaper

BIG IDEAS FROM THE BEST THINKERS: REPORT ON STRATEGIC INVESTMENT CONFERENCE (SPEAKERS INCLUDED MARC FABER, NIALL FERGUSON, MOHAMED EL-ERIAN, DAVID ROSENBERG, JEFFREY GUNDLACH, DAVID MCWILLIAMS, WOODY BROCK, DAVID HARDING, LACY HUNT, AND JOHN MAULDIN) KEVIN M. WILSON 14

L. Hunt: Recession Indicators Flashing Red (1) 15

16 L. Hunt: Keynesian Theory Is Wrong, So Our Policy Is Wrong

17 J. Gundlach: Federal Debt Is Killing Middle Class Outlook

18 J. Gundlach: Interest on Federal Debt Now $454 Billion Per Year!

19 L. Hunt: Debt-Deflation Cycle Will Continue

20 J. Gundlach: Composition Of Debt Important

21 M. El-Erian: Money Printing Instead of Solutions

22 J. Gundlach: Fed Manipulating The Markets

23 W. Brock: ECB Also Manipulating The Markets

24 D. Rosenberg: GDP Gap Makes Us Weak Going Into Slowdown

25 D. Rosenberg: Gaming The System (1)

26 D. Rosenberg: Gaming The System? (2)

27 D. Rosenberg: Gaming The System (3)

SUMMARY & CONCLUSIONS 28 KEVIN M. WILSON

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