The Commerce Company | Retirement and Investment Services

Our suggested asset allocations reflect:

In our three more conservative models, we suggest decreasing equities while increasing Real Estate/Tangible exposure.

Investors in most developed countries remain defensive given weaker worldwide equity performance and uncertainties in the markets. In the U.S., investors face high volatility in equities, a federal government unable to successfully address major budget deficit issues, and a $15 trillion national debt.

We do not expect a second recession but are optimistic about the nation’s move toward energy self-sufficiency and an American manufacturing renaissance. There are also hints of a housing recovery and a technology revolution.

Our forecast is that the S&P 500 will have a mid to high single-digit return in 2012. If you layer in a 3-4% dividend yield on top of such a return, the allure of equities becomes pretty compelling.

The investment profile is hypothetical, and the asset allocations are presented only as examples and are not intended as investment advice. Asset allocation does not assure a profit or protect against loss. Please contact us if you have questions about these examples and how they relate to your own financial situation. Please note that international investing involves special risks, including currency fluctuations, differing financial accounting standards,and possible political and economic volatility. These suggestions and asset allocation models may not be suitable for all investors. Consult your financial advisor before making an investment decision.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Past performance may not be indicative of future results. The opinions and investment commentary are those of The Commerce Company and not of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

Securities offered through Raymond James Financial Services, Inc. member FINRA/SIPC.