Dear Friends and Family,

“The U.S. Constitution doesn’t guarantee Happiness, only the pursuit of it.”

It seems like a long and painful pursuit recently with the housing market, financial markets in flux, and all the items that affect our economy. The news continues with a mix of good and bad reports. Oil and gasoline prices are rising; the geopolitical issue with oil and the violence in Libya are affecting market performance.

Crude oil hit $108 a barrel for the first time since 2008, raising fuel costs. However, our energy sector positions have benefited portfolios. We are overweighted in energy as a hedge against inflation, historically led by petroleum.

Housing prices are falling, but this data lags. Foreclosures now make up 39% of the mix. However, new home sales and prices are rising, with inventory at its lowest since 1967. New family formations are outpacing new construction, which supports our overweight stance in housing.

Tax Reminder: The deadline for 2010 IRA contributions is April 18, 2011. Please contact us for assistance. Note: the IRS will not be sending paper tax forms this year. Visit www.irs.gov or a local IRS office for physical forms. Also, the IRA Charitable Rollover has been reinstated for 2010–2011. Consult your tax advisor for more changes.

Sincerely,

Katz Family Financial