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In a world dominated by smarter and smarter gadgets, one of the dumbest machines on earth is making a quiet comeback.THE USELESS MACHINE

TURN IT ON AND A SWITCH POPS OUT TO TURN IT OFF??YIKES!ONLY$29.95Source: Wall Street Journal 3/12/2013TRUE STORY??!!Built By Advisors For AdvisorsBIGFOOT INVESTMENTS OPEN FORUM

Mar 14th, 2013

WELCOME!

Built By Advisors For Advisors2AGENDA WELCOME! ADMIN NOTESQUOTE OF THE DAYOPTIMISM GAUGECHARTS OF INTERESTSO WHATS UP WITH: INTEREST RATESA CLOSER LOOK AT: ALK DAVIDS CORNERSWAPS AND SPREADSLEES COMMENTS QUESTIONS/COMMENTS

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ALSO - WE WILL CONTINUE TO SEND OUT THE SLIDESBuilt By Advisors For Advisors QUOTE OF THE DAY:The two most powerful things in existence:Ken Langone Founder Home Depot.A kind word and thoughtful gesture!Built By Advisors For AdvisorsOptimism GaugeAs of: 3/14/2013Built By Advisors For AdvisorsIndicatorCurrent ValuePrior/Metric ValueCurrent ValueSt Louis Fed Financial Stress Index-.549-0.597(Revised)+1.0Chicago Fed National Act Index (3 Mon Mov Av)0.300.23(Revised)+.50

Unemployment7.77.9 (Revised)+.50Weekly Jobless Claims (4Wk Mov Av)346,750349,500(Revised)+.50ECRI Weekly Index6.26.8 +.50Conf Board Leading Indicators (NEW)94.193.9+1.0University of Michigan Sentiment - Final77.6(Final Feb 2013)73.8(Final-Jan 2012)-.25Monthly Retail Sales (Adjusted)416,990416,070+.50NFIB Small Business Sentiment90.888.9-.50ISM Manufacturing54.2(Expansion Line = 50)53.1+.50Economic Capacity Utilization79.179.3(Revised)+.50Stock Market Moving Averages Weekly Data Points>50-day MA/>100-Day MAN/A

+.50S&P Case-Shiller 20 City Comp Index145.95145.82 (Revised)+.50Total+5.75Last Update: 3/14/2013Measuring Our Economy11 NOTES/COMMENTS CURRENT READING: 76.3% PRIOR READING: 72.0%

BIAS: BULLISH

11 OF 13 INDICATORS POSITIVE

TREND - POSITIVEEconomicOptimismIndex152535456575859576.3%READING AS OF: 3/14/2013POSITIVE AS OF: 8/17/2012 Current ReadingPrior ReadingMeasuring Our Economy12Charts of Interest!Built By Advisors For Advisors13

BEFORE AND AFTER HOW ARE WE DOING?2007 to NOWSource: Wall Street Journal

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5 REASONS THE ECONOMY IS NOT EXPANDINGBuilt By Advisors For Advisors

REASON #1 THE MONEY IS JUST SITTING!

EXCESS RESERVES GROWINGMONEY VELOCITY DECREASINGMONEY SUPPLY GROWINGSource: Federal Reserve Bank of St LouisBuilt By Advisors For AdvisorsREASON #2 SMALL BUSINESSES OUTLOOK: POOR

Source: Calculated RiskBelow 95% of Pre-Recession LevelBuilt By Advisors For AdvisorsREASON #3 LABOR FORCE METRICS MASK A PROBLEM

Source: Federal Reserve Bank of St LouisFEB 201363.5%Feb 200766.3%Built By Advisors For Advisors

Business Investment Down 25%Source: Bureau of Economic Analysis17.4% of GDP13.1% of GDPREASON #4 GDP NOT GROWING FAST ENOUGHBuilt By Advisors For Advisors19

REASON #5 THE JOBS GAPSource: The Hamilton ProjectGetting back tonormal will be toughMost Likely PathBuilt By Advisors For Advisors20

Source: ICIMONEY FLOWSNO ROTATION YET!Flows into bond funds actually increasedBuilt By Advisors For Advisors

Source: Political CalculationsCHANGES CAN HAVE CONSEQUENCESBuilt By Advisors For Advisors

BigFoot News The Portfolio TabBuilt By Advisors For Advisors

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4 SectionsBuilt By Advisors For Advisors

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Trade Log Excel fileTo Override BigFoot SystemTrade Date Breakout/EditTo Remove PositionBuilt By Advisors For Advisors

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Monthly Returns- Current Data- Historical Stats- Strategy Stats- Comparison to the MarketBuilt By Advisors For Advisors

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SO WHATS UP WITH:

INTEREST RATES BERNANKE SPEAK

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Recently (3/1/2013) Chairman Bernanke made a speech to the Annual Monetary/Macroeconomics Conference in San Francisco:

LONG-TERM INTEREST RATESDISECTING THE SPEECH (AGREE OR NOT) WILL TELL YOU HOWTHE FED VIEWS RATES AND WHY. WE SHOULD LISTEN! Built By Advisors For Advisors

WHY ARE RATES SO LOW?Central Banks pursuing accommodative policyBoost GrowthReduce slack in economyBroader economic environment (world-view)Constraints that environment places on policyThe first one is obviousThe last two are also policy driversBuilt By Advisors For Advisors

BROADER ECONOMIC PICTURE

Global Yields ConformBuilt By Advisors For Advisors

BASIS FOR 10 YEAR U.S. RATES (CONSTRAINTS)THREE FACTORS*:Expected InflationExpected path of real ratesResidual rate or Term Premium *COMPONENTS OF YIELDBuilt By Advisors For Advisors

Note decline in Term PremiumIf inflation is close to NOMINAL rate the other two components make slightly negative contributionsBuilt By Advisors For Advisors

FACTORS AT WORK:Ten year yield is an expectationFed effects changes in nominal ratesIf inflation moves slowly, real rates are controlledIn the longer term (real world) rates are determined primarily by NON-MONETARY FACTORSThe 10-year rate is predictive of expectations of a slow cyclical recovery and slow long-term growth ratesBuilt By Advisors For Advisors

MOVING FORWARD (THE DYNAMIC)

Move toward more normal rates over the next several yearsNormalization of Term Premium might also contribute (to the rise)Next chart illustrates (4) possible paths.the basic message is clearlong-term interest rates are expected to rise gradually over the next few years

Source: Bernanke quotes in speechBuilt By Advisors For Advisors

RATE ESTIMATES MOVING FORWARDBuilt By Advisors For Advisors

RANGE COMPUTATIONS

Note: Up/Down ranges are quite equalizedBuilt By Advisors For Advisors

RISKS FROM THE FED PERSPECTIVERATES WILL REMAIN LOWTHEY WILL NOTI hope my discussion this evening has convinced you that, at least in economic circumstances of the sort that prevail today, such an approach [increasing rates] could be quite costly and might well be counterproductive from the standpoint of promoting financial stability.FED POSITIONBuilt By Advisors For Advisors

A CLOSER LOOK AT: ALK Built By Advisors For AdvisorsAlaska Air Group, Inc (ALK)Alaska Air Group, Inc., through its subsidiaries, provides scheduled air transportation for passengers and cargo. It offers extensive north/south service within the western United States, Canada, and Mexico; passenger and cargo services to and within the state of Alaska; and long-haul east/west service to Hawaii and 13 cities in the mid-continental and eastern United States. The company offers passenger air services to approximately 24 million passengers and fly to approximately 100 destinations. As of December 31, 2011, its fleet consisted of 117 Boeing 737 jet aircraft and 48 Bombardier Q400 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.Source: FinViz.com, March 2013

Sources: Value Line, March 2013POSITIVES: Alaska Air offered new flights which helped add to their 8% increase over 2011 numbers. Passenger revenue per available seat mile also increased nearly 3%. Lower fuel expenses offset higher maintenance and ancillary costs. All told, earnings grew 21% year over year.

Possible concerns: If fuel prices spike or the global economy fails to gain sufficient traction, it would surely weigh on results of the forthcoming fleet modernization program.Alaska Air Group, Inc (ALK)

Enters PortfolioBuilt By Advisors For Advisors46

ENTERS PORTFOLIO 3/1/2013 BUY SIGNALPurchase at $54.11Built By Advisors For Advisors

Built By Advisors For AdvisorsMarch 2013 Stock PicksAs of February 28, 2013 - Subject to change.

3

Barclays Upgrade 3/4/2013Target $63.00FINVIZ SUMMARYBuilt By Advisors For Advisors

FEB 2013 DATAImproving Steadily In All MetricsFebruary

Year-to-Date

2013

2012

Change

2013

2012

ChangeRevenue passengers (in thousands)1,376

1,341

2.6%

2,854

2,695

5.9%Revenue passenger miles RPM (in millions)1,870

1,761

6.2%

3,902

3,577

9.1%Available seat miles ASM (in millions)2,198

2,085

5.4%

4,632

4,256

8.8%Passenger load factor85.1%

84.5%

0.6 bps

84.2%

84.0%

0.2 bpsOn-time arrivals as reported to U.S. DOT90.6%

89.5%

1.1 bps

88.6%

84.1%

4.5 bpsBuilt By Advisors For Advisors

Dow Transportation Index

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Dow U.S. Airline IndexBuilt By Advisors For Advisors

VALUE LINEBuilt By Advisors For Advisors54

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8-K Filed 3/13/2013 Stock Up Over 4%Built By Advisors For Advisors

8-K Filed 3/13/2013 Stock Up Over 4%Built By Advisors For Advisors

ALASKA AIR, OTHER AIRLINES SOAR AS PROSPECTS IMPROVEThe Transportation-Airlines industry group posted the largest gain in the past eight weeks among the 197 industries tracked by IBD.The top advances in the industry include Spirit Airlines (SAVE), up 31% year to date, Alaska Air Group (ALK), up 29% and SkyWest (SKY), up 19%.Another boost came Feb. 22 from the Department of Transportation, which reported passenger traffic increased 0.8%, year over year, in November. Domestic travelers inched up 0.4% while international passengers jumped 4.3%.Built By Advisors For Advisors

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THE CHARTS PLEASE!Built By Advisors For AdvisorsDAVIDS CORNERBuilt By Advisors For AdvisorsSWAPS & SPREADS

IGNORE AT YOUR PERILBuilt By Advisors For AdvisorsSWAPS AND SPREADSRATEPRIORCURRENTSTATUSLibor/OIS13.8614.51Euribor/Eonia.130.135DTCC RepoIndexAgency.200.120MBS.222.126Treas.189.111High Yield4.884.76Federal ReserveCurrency Swaps (ECB)USD million7 Day0380Open4,1927,963Note: Status = No impact Status = Negative Impact As Of: 3/13/2013CREDIT ANTICIPATES EQUITY CONFIMSBuilt By Advisors For Advisors71Lees Comments!Built By Advisors For AdvisorsQUESTIONS & COMMENTS

THANKS FOR JOINING US!Built By Advisors For Advisors IMPORTANT DISCLOSURE INFORMATION Content is intended for investment professional use/review only. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BigFoot Investments.com), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for any investment professionals clients portfolio or individual situation, or prove successful. The investment professional retains all decision making authority as to whether or not to follow and/or implement any of the presentation content. BigFoot has absolutely no responsibly for any suitability determination pertaining to any of the investment professionals clients, such obligation being exclusively the initial and ongoing responsibility of the investment professional. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from BigFoot Investments.com. BigFoot Investments.com. is neither a law firm nor a certified public accounting firm and no portion of the content should be construed as legal or accounting advice. Investment Professional acknowledges that to the extent required to do so, it is his/her/its exclusively responsibility to advise his/her/its employer/broker-dealer of its BigFoot subscription. BigFoot Investments.com is a service of Lee Johnson Capital Management, an SEC registered investment adviser located in Fort Worth, Texas. A copy of the Lee Johnson Capital Management LLC current written disclosure statement discussing our advisory services and fees is available for review upon request.No Sharing of Content: You acknowledge that the presentation content is for investment professional use only. You warrant and represent not to share any portion of the presentation content with any non-subscriber, including but not limited to your clients or prospectsBuilt By Advisors For Advisors