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5. Are we heading to all time highs and beyond or is a 5-10% correction coming first? Reviewing Last Weeks Debate:

7. + 2.2%

8. Professor Jeff Hart’s Market Observation: 2007 to now

9.  Does the Stock market being at an all time high really matter?  Why are the stock market and economy so off balance? Stocks and the Economy

10.  Market higher doesn’t translate to more disposable income for large majority of consumers.  Wages and salaries is what drives spending and both haven’t even kept up with inflation so consumer spending has continued to be “anemic”.

11. FEB Jobs Report: 236,000 Jobs created; Unemployment Rate Falls to 7.7%

12. Prior Prior Revised ConsensusConsensus Range Actual Nonfarm Payrolls - M/M change 157,00 119,000 171,000 130,000 to 225,000 236,000 Unemployment Rate - Level 7.9 %7.8 %7.7 % to 7.9 %7.7 % Average Hourly Earnings - M/M change 0.2% 0.1 % to 0.3 %0.2 % Av Workweek - All Employees 34.4 hrs 34.3 hrs to 34.5 hrs34.5 hrs Private Payrolls - M/M change 166,000 140,000 195,000 160,000 to 235,000 246,000 http://www.bloomberg.com/markets/economic-calendar/

13. PAYROLL/ ESTABLISHMENT  Surveys 140,000 companies & Gov. agencies  Asks mostly large companies and government agencies how many people they employed.  Employers send forms to labor dept. or fill online surveys.  Survey produces the number of jobs gained or lost as well as wages and hours worked. HOUSEHOLD  More volatile b/c only 60,000 people surveyed  Gov. workers ask whether adults in a household have a job.  Then asked if they have looked for work in last 30 days, if not, then they aren't part of labor force.  Produces the unemployment rate.

15. U-3( official) = 7.7% (looking for a job within the last month) U-6 = 14.3% (looking for job within the last year) ShadowStat = 23.0% (looking for a job)

17. Besides the “unemployment Rate” and number of jobs created, here's what to look for to better understand the report and make investment decisions from it. 1. Part-time workers  Two 20hr part time jobs = one full time 40hr job but would be 2 net jobs created. 2. Seasonal hires  Employees hired for holidays/special events aren’t real economic jobs. 3. Labor force participation rate  Measures how many people are able to work but have stopped looking and are no longer counted in the labor force.

18. If the Labor Participation rate was the same as 2007 the unemployment rate would be 11%!!

23. “GRAND DISCONNECT”“STOCKS STILL CHEAP” Both agree “Don’t Fight the Fed” in the short run but differ drastically on how they think investors should value the market on a P/E basis.

24.  Trailing: Current index price over Prior years EPS of all companies. 17.5  Forward: Current index price over Next years expected EPS of all companies. 14  Schiller Cyclically adjusted P/E ratio: Ratio is based on average inflation-adjusted earnings from the previous 10 years. 23.38 P/E Ratios on the market *S&P 500 average P/E ratio is 15-17

26. Round 37- Is The Fed helping or Hurting?

29. With Eric Woodraska and Dylan Hochester

30.  Worked with founder of club  End of meeting discussions  “Dropbox” for stocks  Expand on outside events like Airliner

31.  18 Largest US banks  Tests banks ability in adverse economic conditions  Fed began testing in 2009 because of Financial crisis

32.  Unemployment 13%  Equities down 50%  Housing prices drop 21%

33.  Citigroup (C)  Ally Financial (GMA)  SunTrust (STI)  MetLife (MET)  (Sold out of banking business)

34.  GDP falls an average of 4% this year  Unemployment goes to 12.1%  Equities down 50%  Housing prices drop 20%  ‘Passing’ was > 5% capital ratio

35.  Measure of the amount of a bank's core capital expressed as a percentage of its risk- weighted asset

36. Bank Stress Test

38.  Winners  Citigroup (C)  JPM Chase (JPM)  Bank of America (BAC)  Wells Fargo (WFC)  Loser  Ally Financial (GMA) ▪ 2 nd year in a row it hasn’t passed

40.  Share buyback  Citi set to buyback $1.2 billion  Increase dividends  Citi will not increase dividends

41.  Remember March 14 th  2 nd set of numbers comes out  Official Pass/Fail and approval of bank plans by Fed  Direxion Daily Financial Bull 3X Shares (FAS)  Direxion Daily Financial Bear 3X Shares (FAZ)

43. $821.50 $90.26 $420.05 $273.11 $714.01

46. EARNINGS:  Costco (COST)  Dicks Sporting Goods (DKS)  Men's warehouse (MW)  Urban outfitters (URBN) DATA  Retail spending fro Feb  Samsung releases Galaxy s4