1. Kevin M. Wilson, ChFC, PhD President/CEO/CIO Dheenu Sivalingam, MBA AVP/CCO/Senior Analyst 1314 E. Superior Street Suite 2 Duluth, MN 55805 Office: 218-464-4399 Toll Free: 877-327-5062 Fax: 218-464-4397 Email: info@bluewater-cap.com www.bluewatercapitaladvisors.com Monthly Market Review “Superior Ideas for Investing” May 17, 2012 Ted A. Pavlovich, WMS VP Wealth Management 11

2. INTRODUCTION TED A. PAVLOVICH 2

3. BLUE WATER’S MOVE TO 1405 MEDICAL ARTS BUILDING, 324 W. SUPERIOR ST., DULUTH MN 55802 – MAY 31, 2012 - CONVENIENT, FREE VALET PARKING - ACCESS THROUGH SKYWAY SYSTEM - IN-HOUSE SMALL GROUP MEETINGS (MMR) - OPEN HOUSE IN JUNE (DATE TBD) KEVIN M. WILSON 3

4. BRIEF SITUATION REPORT TED A. PAVLOVICH 4

5. 5 Global Economy Slowing

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

7. 7 Economic Surprises Are Negative, Moving Stocks Lower

8. 8 TBTF Banks Still Gambling and Losing

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

10. Relative Importance Of Foreign Markets Varies 10

11. 11 The Sizes Of Foreign Markets Are A Factor

12. 12 Market Valuations Must Be Monitored

13. 13 Most Indexes Have Declined For A Year, So Cheaper

14. 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

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

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

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

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

19. 19 L. Hunt: Debt-Deflation Cycle Will Continue

20. 20 J. Gundlach: Composition Of Debt Important

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

22. 22 J. Gundlach: Fed Manipulating The Markets

23. 23 W. Brock: ECB Also Manipulating The Markets

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

25. 25 D. Rosenberg: Gaming The System (1)

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

27. 27 D. Rosenberg: Gaming The System (3)

28. SUMMARY & CONCLUSIONS 28 KEVIN M. WILSON

29. This report is provided for informational purposes only and does not constitute an offer or solicitation to purchase or sell any security or commodity and is not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Any opinions expressed herein are subject to change at any time without notice. Information has been obtained from sources believed to be reliable, for its accuracy and interpretation are not guaranteed. Investing in securities involves risk, including possible loss of principal. Past performance should not be taken as an indication of guarantee of future performance and no representation, express or implied, is made regarding future performance. The firm does not provide tax advice; clients should contact their attorney, accountant, or other tax adviser regarding tax matters. Blue Water Capital Advisors, LLC is an SEC registered investment advisor. Not FDIC insured. No bank guarantee. May lose value. Not a deposit. Not insured by any federal government agency. Blue Water Capital Advisors, LLC is not affiliated with National Bank of Commerce or NATCOM Bancshares, Inc. Disclaimer 29