See Slide Master to replace with customer logo. 2 Richmond Brothers, Inc. is a Registered Investment Adviser. Richmond Brothers, Inc. does not provide

2

Richmond Brothers, Inc. is a Registered Investment Adviser.

Richmond Brothers, Inc. does not provide tax or legal advice; consult your tax or legal advisor regarding your particular situation.

The indices mentioned in this seminar are unmanaged and not available for direct investment. Past performance is no guarantee of future results.

Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information contained in this commentary has been obtained from sources that are reliable. This presentation is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

This presentation has been adapted from Platinum Advisor Marketing Strategies, LLC.

Formalities

3

A Quick Review of the First Half

A Basic Investing Refresher Course

Is the Economic Recovery In Trouble?

What Could Happen With Bond Prices?

Has The Bull Finished Running?

Second Half Expectations

A Quick Review of Last Year (Summer ‘13 – Summer ‘14)

Review of Richmond Brothers’ Decisions in Your Portfolio

Agenda

4

1/2/

14

1/8/

14

1/14

/14

1/20

/14

1/26

/14

2/1/

14

2/7/

14

2/13

/14

2/19

/14

2/25

/14

3/3/

14

3/9/

14

3/15

/14

3/21

/14

3/27

/14

4/2/

14

4/8/

14

4/14

/14

4/20

/14

4/26

/14

5/2/

14

5/8/

14

5/14

/14

5/20

/14

5/26

/14

6/1/

14

6/7/

14

6/13

/14

6/19

/14

6/25

/14

1725

1775

1825

1875

1925

1975

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. All index returns exclude reinvested dividends. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. Data Source: Yahoo Finance. All data as of June 30, 2014.

First Half Snapshot

Jan 2 Open1,845.86

June 30 Close1,960.23

5

Name/Company 2014 S&P 500 Target Revised Forecast

David Bianco, Deutsche Bank 1,850 Reiterated

Brian Belski, BMO 1,900 Reiterated

Barry Knapp, Barclays 1,900 No Update

Tobias Levkovich, Citigroup 1,975 2,000

David Kostin, Goldman Sachs 1,900 Reiterated

Michael Kurtz, Nomura 1,925 No Update

Sean Darby, Jefferies 1,950 No Update

Jonathan Golub, RBC 1,950 2,075

Julian Emanuel, UBS 1,950 No Update

Andrew Garthwaite, Credit Suisse 1,960 2,020

Savita Subramanian, BofA 2,000 Reiterated

Adam Parker, Morgan Stanley 2,014 Reiterated

John Stoltzfus, Oppenheimer 2,014 Reiterated

Tom Lee, JP Morgan 2,075 No Update

GROUP AVERAGE 1,954.50 1969.50

Sources: Business Insider, MarketWatch, CNBC Past performance does not predict future results.

2014 Forecasts

June 30, 2014 Close: 1960.23

6



Agenda

7

Stocks

Stocks

• Ownership shares ofa company

Benefits & Drawbacks

• Can increase wealththrough growth

• Help fight inflation

• May be volatile

• Can lose entire value

8

Bonds

Bonds

• Loans made to a corporation, government, or organization

• Investment grade bonds:AAA to BBB-

Benefits & Drawbacks

• Good sources of investment income

• Generally, less volatile than stocks

• Bond prices may fall with rising interest rates

• Vulnerable to inflation risk

9

2007 2008 2009 2010 2011 2012 2013 2014 YTD

MSCIEM

39.78%

BarclaysAggregate Bond

5.24%

MSCIEM

79.02%

Russell 2000Growth29.09%


7.84%

MSCIEM

18.63%


S&P 500Growth6.42%

MSCIEAFE

11.17%

Russell 2000Value

-28.92%


Russell 2000

26.85%

S&P 500Growth4.65%

Russell 2000Value

18.05%

Russell 2000

37.23%

S&P 500

6.05%

S&P 500Growth9.13%

Russell 2000

-33.79%

MSCIEAFE

31.78%

Russell 2000Value

24.50%

S&P 500

2.11%

S&P 500Value

17.68%

Russell 2000Value

31.96%

S&P 500Value5.65%


S&P 500Growth-34.92%

S&P 500Growth31.57%

MSCIEM

19.20%

S&P 500Value

-0.48%

MSCIEAFE

17.32%

S&P 500Growth30.14%

MSCIEM

4.80%


6.97%

S&P 500

-37.00%

Russell 2000

27.17%

S&P 500Value

15.10%

Russell 2000Growth-2.91%

Russell 2000

16.35%

S&P 500

29.64%

Russell 2000Value3.16%

S&P 500

5.49%

Russell 2000Growth-38.54%

S&P 500

26.47%

S&P 500

15.06%

Russell 2000

-4.18%

S&P 500

16.00%

S&P 500Value

28.28%

MSCIEAFE2.95%

S&P 500Value1.99%

S&P 500Value

-39.22%

S&P 500Value

21.17%

S&P 500Growth15.05%

Russell 2000Value

-5.50%

S&P 500Growth14.61%

MSCIEAFE

23.30%


2.79%

Russell 2000

-1.57%

MSCIEAFE

-43.38%

Russell 2000Value

20.58%

MSCIEAFE7.75%

MSCIEAFE

-12.14%



-2.00%

Russell 2000

2.52%

Russell 2000Value

-9.78%

MSCIEM

-53.18%


5.93%


6.54%

MSCIEM

-18.17%


4.21%

MSCIEM

-2.30%


Source: Google Finance, MSCI Barra. Data as of 06-30-2014. Disclosures on following slide.

Comparing Returns

10

The indices mentioned on the previous slide are unmanaged and not available for direct investment. Past performance is no guarantee of future results. All data is sourced from Yahoo Finance and MSCI unless otherwise noted.

S&P 500 measures the performance of large capitalization U.S. stocks. The S&P 500 is a market-value-weighted index of 500 stocks that are traded on the NYSE, AMEX, and NASDAQ. The weightings make each company’s influence on the Index performance directly proportional to that company’s market value.

S&P 500 Growth and S&P 500 Value measure the performance of the growth and value styles of investing in large cap U.S. stocks. The indices are constructed by dividing the market capitalization of the S&P 500 Index into Growth and Value indices, using style “factors” to make the assignment. The Value Index contains those S&P 500 securities with a greater-than-average value orientation, while the Growth Index contains those securities with a greater-than average growth orientation. The indices are market-capitalization-weighted. The constituent securities are not mutually exclusive.

Russell 2000 measures the performance of small capitalization U.S. stocks. The Russell 2000 is a market-value-weighted index of the 2,000 smallest stocks in the broad-market Russell 3000 Index. These securities are traded on the NYSE, AMEX, and NASDAQ.

Russell 2000 Value and Russell 2000 Growth measure the performance of the growth and value styles of investing in small cap U.S. stocks. The indices are constructed by dividing the market capitalization of the Russell 2000 Index into Growth and Value indices, using style “factors” to make the assignment. The Value Index contains those Russell 2000 securities with a greater-than-average value orientation, while the Growth Index contains those securities with a greater-than-average growth orientation. Securities in the Value Index generally have lower price-to-book and price-earnings ratios than those in the Growth Index. The indices are market-capitalization-weighted. The constituent securities are not mutually exclusive.

MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the performance of the developed stock markets of Europe, Australasia, and the Far East.

MSCI Emerging Markets is a Morgan Stanley Capital International Index that is designed to measure the performance of equity markets in 21 emerging countries around the world.

Barclays Aggregate Bond Index (formerly the Lehman Brothers Aggregate Bond Index) includes U.S. government, corporate, and mortgage-backed securities with maturities of at least one year.

Diversification cannot guarantee a profit or protect your portfolio from losses in a period of declining prices.

Disclosures

11

How Much Risk Are You Willing to Take?

12




Agenda

13

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2

1.1

2.5

4.1

2.6

-2.9

Source: online.wsj.com. Projections are based on opinions of analysts polled at the time of the survey. Real Gross Domestic Product at an annualized growth rate. The Wall Street Journal surveys a group of nearly 50 economists on a monthly basis throughout the year. Forecast Edition: June 2014

GDP – Historical & Forecast

14

Source: BEA, FRB, J.P. Morgan Asset Management. *2Q14 household debt service ratio and household net worth are J.P. Morgan Asset Management estimates. Values may not sum to 100% due to rounding. Data are as of 6/30/14.

Household Finances

Household Debt Service Ratio Household Net Worth

Debt Payments as % of Disposable Personal Income, Seasonally Adjusted

Billions USD, Not Seasonally Adjusted

15

Average Hourly Earnings Growth

Year-Over-Year % Change for Production and Nonsupervisory Workers

Source: BLS, FactSet, J.P. Morgan Asset Management. Data are as of 6/30/14.

Worker Earnings

16Source: BLS, FactSet, J.P. Morgan Asset Management. Data are as of 6/30/14.

Employment

Civilian Unemployment Rate Employment – Total Private Payroll

Seasonally Adjusted Total Job Gain/Loss (Thousands)

17

Light Vehicle Sales

Millions, Seasonally Adjusted Annual Rate

Source: BEA, FactSet, J.P. Morgan Asset Management.

Auto Sales

18Source: Census Bureau, FactSet, J.P. Morgan Asset Management.

Housing

Housing Starts

Thousands, Seasonally Adjusted Annual Rate

19

CPI and Core CPI

% Change vs. Prior Year, Seasonally Adjusted

Source: BLS, FactSet, J.P. Morgan Asset Management. CPI used is CPI-U and values shown are % change vs. 1 year ago and reflect May 2014 CPI data. Data are as of 6/30/14.

Inflation

50-yr. Avg. May 2014

20

Is the risk to your 2014 growth forecastmore to the upside or the downside?

73%27%

Source: online.wsj.com. Projections are based on opinions of analysts polled at the time of the survey. The Wall Street Journal surveys a group of nearly 50 economists on a monthly basis throughout the year. Forecast Edition: June 2014

Forecast – U.S. Economy

Downside Upside

21





Agenda

22

Source: online.wsj.com. Projections are based on opinions of analysts polled at the time of the survey. Results displayed in descending order by number of responses.The Wall Street Journal surveys a group of nearly 50 economists on a monthly basis throughout the year.Forecast Edition: June 2014

Forecast: Interest Rates

When will the Fed make its first increase in the Federal Funds Rate?

Q2 2015 Q3 2015 Q1 2015 Q4 2015 Q4 2014 Q1 2016 Q3 2014

33

27

16

10

64

2

23






Agenda

24

Corporate Cash as a % Current Assets Cash Returned to Shareholders

S&P 500 Companies – Cash and Cash Equivalents, Quarterly

$bn, S&P 500 Companies, Rolling 4-Quarter Averages

Source: Standard & Poor’s, FRB, Bloomberg, FactSet, J.P. Morgan Securities. Past performance is not indicative of future results.

Healthy Corporations

25

Headwinds:Tailwinds:

• Rising Interest Rate Environment

• Historical Trends

• P/E Ratios Are In-Line With Historical Averages

• Healthy Corporate Cash and Profits

• Stabilizing and Expanding Economy

• Investor Optimism

• Geopolitical Tensions

• Rising Energy & Food Prices

• P/E Ratios Are In-Line With Historical Averages

The Case for Equities

26







Agenda

27

Second Half Forecast

Source: The views displayed on this slide represent the opinions of Oppenheimer as of 06/30/14, are subject to change based on subsequent developments, are not intended as investment advice, and are not intended to predict or depict the performance of any investment.

• Interest Rates

• U.S. Business Investment

• Global Economic Growth

• Credit

• Consumer

• Global Economic Growth

• U.S. Housing

• Inflation

• Geopolitical Risks

• Cyclical Slowdown In Emerging Markets

28







A Quick Review of Last Year (Summer ‘13 – Summer ‘14)

Agenda

29

Quick Review of Last Year & RB Decisions

• Summer 2013 changes in your portfolio

• Fall/winter 2013/2014 decisions

• May 2014 hold steady NO “Sell in May?”

• Richmond Brothers thoughts and allocations going into 2nd half 2014

30

Until Next Time…

Questions? E-mail:

[email protected]

Or Call: 517-536-5000

mailto:[email protected]

Documents

See Slide Master to replace with customer logo. 2 Richmond Brothers, Inc. is a Registered Investment Adviser. Richmond Brothers, Inc. does not provide