W. Michael Robertson

5120 Woodway Drive, Suite 9029Contact: Peggy Tuck

713-624-4004www.robertsonwealth.com

“Securities offered through First Allied Securities, Inc. Member: FINRA/SIPC”

ROBERTSON WEALTH MANAGEMENT

“If you don’t understand what took the market up, you won’t understand what will take the market down.”–Harry Dent

Average Annual Family Spending by Age (5-year age groups)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Spen

ding

46-50

20 30 8060 705040Age

Dow Average 1900-2012The last demographic trough was followed by a 20 fold return in stocks in 18 years

Dow Average soared from 600 to 12,000

1937

1942Battle ofMidway

1982Demographic

TailwindStarts

1962Demographic

Headwind starts

2,200,000

2,700,000

3,200,000

3,700,000

4,200,000

4,700,000

5,200,000

1956 1966 1976 1986 1996 2006 2016 2026 2036 2046 20561,000

3,000

5,000

7,000

9,000

11,000

13,000

15,000

17,000

Immigration-adjusted Births Lagged for Peak

Spending

Dow Adjusted for Inflation

The Spending WaveBirths Lagged for Peak in Family Spending

S&P 500 Index at Inflection Points 6GTM – U.S.

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12600

800

1,000

1,200

1,400

1,600 Index level 1,527 1,565 1,426P/E ratio (fwd.) 25.6x 15.2x 12.5xDividend yield 1.1% 1.8% 2.2% 10-yr. Treasury 6.2% 4.7% 1.8%

Source: Standard & Poor’s, First Call, Compustat, FactSet, J.P. Morgan Asset Management.

Dividend yield is calculated as the annualized dividend rate divided by price, as provided by Compustat. Forward Price to Earnings Ratio is a bottom-up calculation based on the most recent S&P 500 Index price, divided by consensus estimates for earnings in the next 12 months (NTM), and is provided by FactSet Market Aggregates. Returns are cumulative and based on S&P 500 Index price movement only, and do not include the reinvestment of dividends. Past performance is not indicative of future results.

Data are as of 12/31/12.

S&P 500 Index

-49%

Equi

ties

Oct. 9, 2002 P/E (fwd.) = 14.1x

777

Mar. 24, 2000 P/E (fwd.) = 25.6x

1,527

Dec. 31, 1996 P/E (fwd.) = 16.0x

741

Dec. 31, 2012 P/E (fwd.) = 12.5x

1,426

+101%

Oct. 9, 2007 P/E (fwd.) = 15.2x

1,565

-57%

Mar. 9, 2009 P/E (fwd.) = 10.3x

677

+111%

Characteristic Mar-2000 Oct-2007 Dec-2012

+106%

Japan Nikkei Bubble From 1985-1995

10000

15000

20000

25000

30000

35000

40000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Data Source: Bloomberg

Change in Japanese Consumer Spending 1987 – 2007

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Source: Japanese Family Income and Expenditure Survey

Japanese Stocks vs. Consumer Spending 1987 – 2007

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 200705,000

10,00015,00020,000

25,00030,00035,000

40,00045,000

Source: Japanese Family Income and Expenditure Survey

Nikkei Average

Change in Consumer Spending

The Only Chart You’ll Ever Need to ReadDemographics turn to tailwind in 2022, Peaks in the 46-50 Spending group

Works in a 40 Year Cycle

1966Peak

2006Peak

2036Peak

2022 Trough

From: “The Crash Ahead” by Harry S. Dent

The Best House in a Bad Neighborhood

*A global synchronized recession without the US

*US Growing at 2%

*Europe in recession

*Japan in recession

*China permanently slowing from 11% to 7%

Implications of The Demographic Tailwind that Starts in 2022

*Labor Oversupply turns to a shortage

*Unemployment rate falls to under 5%

*Rising wages lead to consumer spending boom

*Housing shortage leads to residential real estate boom no serious construction for 15 years

*Soaring capital investment to meet this demand drives up interest rates

*Inflation at long last returns

*Both legal and illegal immigration accelerates

*Subprime loans make a comeback

Major Long Term Trends Reassert in the 2020’sbring back the “RISK ON”

*The growth of the global population from 7 billion to 9 billion

*The rise of the emerging market middle class, from 500 million to 2 billion

*The scarcity of essential natural resources

*Global food shortages accelerates

*The rise of technology

*Deflation ends, inflation resumes

Population Changes 2010-2050

• 2 billion new people

More than half of the increase will be in Islamic countries. Islamic population growth from 1 to 2 billion Greatest growth in poorest countries The war against terrorism will not end in 4 years

Population levels off in Latin America, Africa, China China’s one child policy has cut growth by 400 million China demographically turns into Japan in 20 years

Population shrinks in Japan and levels off in Europe

US population levels off at 400 million in 2050from the current 300 million The immigration advantage: Add 1%/year of GDP growth

California jumps from 37 million to 50 million

source: CIA Fact Book

The 2020’s will be the “Risk On” Decade

*Growing economy=“RISK ON”, buy:

stocks, emerging marketscommoditiesprecious metals, especially silverforeign currenciesespecially the Australian and Canadian dollarscommercial real estate & multifamily dwellingssingle family homes *Avoid “RISK OFF” Assets, sell:

US Treasury bondsCorporate bondsMuni bondsSovereign bonds

The Only Chart You’ll Ever Need to ReadDemographics turn to tailwind in 2022, Peaks in the 46-50 Spending group

Works in a 40 Year Cycle

1966Peak

2006Peak

2036Peak

2022 Trough

From: “The Crash Ahead” by Harry S. Dent

Long Term House Prices vs. Inflation

0

50

100

150

200

250

1880 1900 1920 1940 1960 1980 2000 2020

Home Prices

Source: Robert J. Shiller, Irrational Exuberance, 2nd Edition, Princeton University Press, 2005.

9/30/81

CORPORATE BOND YIELDS MINUS STOCK EARNINGS YIELD

Source: Bloomberg

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$100,000 Initial Investment

Manager AAverageManager B

3.63%

Contact: Peggy Tuck 713-624-4004

”

ROBERTSON WEALTH MANAGEMENT

Straight Talk Money8-9am

Business 1110 AM KTEK

Do you have a strategy when your Taxes go up?

13% on amount over $ 20,000 and not exceeding $ 50,00016% on amount over $ 50,000 and not exceeding $ 75,00029% on amount over $ 75,000 and not exceeding $100,00042% on amount over $100,000 and not exceeding $250,00065% on amount over $250,000 and not exceeding $500,00078% on amount over $500,000

1915 tax form

1% on amount over $ 20,000 and not exceeding $ 50,0002% on amount over $ 50,000 and not exceeding $ 75,0003% on amount over $ 75,000 and not exceeding $100,0004% on amount over $100,000 and not exceeding $250,0005% on amount over $250,000 and not exceeding $500,0006% on amount over $500,000

1913 tax form