Jamestowne Investments News Summer 2018

NEWS

a life well planned is a life well lived

The Captain’s Log Summer 2018

Jamie Dimon, the President and CEO of JP Morgan Bank, during a recent interview openly mentioned that he believed successful investing is only achievable if investors maintain a sense of “Long America and Short Pessimism.”

Warren Buffett’s success, as brilliant as he is, can be linked directly to his unwavering conviction in the American corporate machine and its unlimited ingenuity. Even as these two corporate icons share their personal beliefs and optimism, we today are constantly bombarded with reasons to be fearful, skeptical, and hyper cautious about all things investment related.

when we remain optimistic and act fearless.

Today, with our technological advances, we have an incredible world-changing environment in which to be opportunistic and in which to participate as investors. Companies have exceptional balance sheets, unemployment is approaching all-time lows, and for the first time in 30 years we are beginning to see early signs of wage growth and participation rate expansion.

Overall, the U.S. economy is chugging along at a modest and sustainable pace and the global economic market rally is showing substantial signs of strength and tenacity.

Through multiple market cycles, I have learned that success with our investments comes only

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JAMESTOWNE INVESTMENTS NEWS What’s Inside: The Captain’s Log Retirement Planning Weak Spots About Rosewell Quarterly Economic Update The Power of Compounding Establishing a Private (Family) Foundation Account Recipe Corner

Ensure your financial plan addresses all of your life’s events.

A life well planned is a life well lived.

We are here for you through all your life’s events.

Your referral is the highest compliment we can receive.

A MESSAGE FROM CLAYTON Your Trusted Advisor

The Captain’s Log continued from 1st page

As we celebrate the 242nd birthday of our country, I believe we should pause from the skepticism and truly believe for a brief moment that the best is still yet to come. Great American and international companies are rapidly changing the world in which we live. The world we share in 10 years promises to be remarkably different than the world we live in today. Today, community strategists are planning towns built around driverless electric cars and instant Uber deliveries of all things Amazonable.

During this National birthday celebration, Americans have a tremendous amount to remain optimistic about, and we have great reasons to remain bullish about the overall economy and the broad-based stock market. Through this cycle, just like all others of the past, we will suffer our normal market hiccups and challenges, but from my vantage point we have never had a better time to remain “Long America and Short Pessimism”.

CLAYTON JAMES FINANCIAL ADVISOR

I hope everyone has a fantastic and safe July 4th celebration and I am looking forward to a wonderful second half of 2018.

My Very Best, Clayton W. James, CFM Managing Director

“The point of living, and of being an optimist, is to be foolish enough to believe the best is yet to come.” ~ Peter Ustinov (actor)

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Retirement Planning Weak Spots They are all too common.

Many households think they are planning carefully for retirement. In many cases, they are not. Weak spots in their retirement planning and saving may go unnoticed.

Couples should recognize that they may face major medical expenses.

Each year, Fidelity Investments estimates how much a pair of newly retired 65-year-olds will spend on health care throughout the rest of their lives. Fidelity says that on average, retiring men will need $133,000 to fund health care in retirement; retiring women, $147,000. Even baby boomers in outstanding health should accept the possibility that serious health conditions could increase their out-of-pocket hospital, prescription drug, and eldercare costs.1 Retirement savers will want to diversify their invested assets.

An analysis from StreetAuthority, a financial research and publishing company, demonstrates how dramatic the shift has been for some investors. A hypothetical portfolio split evenly between equities and fixed-income investments at the end of February 2009 would have been weighted 74/26 in favor of equities exactly nine years later. If a bear market arrives, that lack of diversification could spell trouble. Another weak spot: some investors just fall in love with two or three companies. If they only buy shares in those companies, their retirement prospects will become tied up with the future of those firms, which could lead to problems.2

save consistently for them. Contrast that with pre-retirees who never arrange monthly salary deferrals into their retirement accounts; they hunt for investment money each month, and it becomes an item on their to-do list. Who knows whether it will be crossed off regularly or not?

Big debts can put a drag on a retirement saving strategy.

Some financial professionals urge their clients to retire debt free or with as little debt as possible; others think carrying a mortgage in retirement can work out. This difference of opinion aside, the less debt a pre-retiree has, the more cash he or she can free up for investment or put into savings.

The biggest weakness is not having a plan at all.

How many households save for retirement with a number in mind – the dollar figure their retirement fund needs to meet? How many approach their retirements with an idea of the income they will require? A conversation with a financial professional may help to clear up any ambiguities – and lead to a strategy that puts new focus into retirement planning.

1 - marketwatch.com/story/youre-probably-goingto-live-longer-what-if-you-cant-afford-it-2018-04-23 [4/23/18] 2 - nasdaq.com/article/how-to-prepare-your-incomeportfolio-for-volatility-cm939499 [3/26/18]

The usefulness of dollar cost averaging.

Recurring, automatic monthly contributions to retirement accounts allow a pre-retiree to

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“If you think you have it tough, read history books” ~ Bill Maher

About Rosewell Branded as “America’s Magnificent Ruin”, Rosewell is a famous colonial archeological site in Gloucester, Virginia. When people visit, they immediately appreciate the monumental shell that stands today as a remarkable representative emblem of Colonial American life and history. Understanding, researching, and piecing together the story of the Rosewell Plantation has become my personal obsession, and to pursue this passion for the greater good of society I have assumed the responsibilities as the President of the Board of Directors of The Rosewell Foundation.

The subterranean geological history of Rosewell begins about 35 million years ago, but the story of the Page family, the original builders of this great mansion, begins circa 1650. During the late 17th and 18th centuries, the Pages, through their education and wealth, became one of Colonial America’s most important families; consequently, Rosewell become one of early America’s most important homes. Young John Page II and young Thomas Jefferson studied law together at the College of William & Mary and quickly became life-long friends. These two (young) scholars spent a significant amount of time together at Rosewell pontificating the current political and financial burdens of the English Monarchy. With great

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certainty we believe the rhetorical banter which would eventually deliver the cornerstone blocks of the Declaration of Independence began between Page and Jefferson at Rosewell. Some scholars believe the early drafts of the Declaration of Independence were penned within the walls of the great mansion.

Through her 300-year history, Rosewell served as centerstage for many significant U.S. historical events.

Through her 300-year history, Rosewell served as centerstage for many significant U.S. historical events, but sadly after a severe fire in 1916, we only have the Ruins to serve as an imagination catalyst. Today, the remaining walls and bricks immediately catch your attention and force your mind to grapple with the complexities and magnitude of early American plantation life and wealth.

As a self proclaimed resident expert on all things Rosewell, I invite you to schedule a personal guided tour of the Ruins and allow me to share with you the fantastic stories of her history and her people.

I believe Rosewell stands as one of America’s single most important historical sites, and I believe all visitors leave Rosewell changed in their appreciation for America’s past and their understanding of America’s history. www.rosewell.org

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Quarterly Economic Update A Review of Q1 2018 What financial, business, and life priorities do we need to address during 2018? Now, early into 2018, is the time to begin arranging your priorities and working towards accomplishing your annual financial goals.

THE QUARTER IN BRIEF Stocks rallied in January, corrected in February, and slumped in March as volatility and economic policy changes took some of the enthusiasm out of the market. The Trump administration announced tariffs on foreign steel, aluminum, and assorted products from China; China soon said that it would reciprocate with excise taxes of its own. The Federal Reserve adjusted the federal funds rate upward and welcomed a new chair; the White House appointed a new chief economic advisor. An orderly process was outlined for the Brexit. The Nasdaq Composite advanced for the first quarter, but the Dow 30 and S&P 500 did not; most major Asian and European benchmarks also retreated. Among commodities, bitcoin declined notably, while oil and gold improved. The placid market climate of 2017 vanished, giving way to trading sessions marked by significant ups and downs.1 DOMESTIC ECONOMIC HEALTH A protectionist trade strategy emerged from the nation’s capital in March. The Trump administration declared that a 25% tariff would be instituted on imported steel and a 10% tariff on imported aluminum.

Some countries were given short-term exemptions from these excise taxes: Argentina, Australia, Brazil, Canada, Mexico, South Korea, and members of the European Union. Additionally, up to $60 billion in Chinese imports would soon face excise taxes. China retaliated at the end of the quarter, imposing import charges of either 15% or 25% on 128 U.S. products, including pork and fruits.2 Elsewhere in Washington, the Janet Yellen era gave way to the Jerome Powell era at the Federal Reserve.

Weeks after Powell took over as Fed chair, the central bank made its first interest rate adjustment of the year, a 0.25% hike that set the target range for the federal funds rate at 1.50%-1.75%. The Fed’s updated dot-plot forecast, reflecting the consensus opinion of its policymakers, projected two more hikes this year: three in 2019 and two in 2020. All that would leave the benchmark interest rate around 3.4%, according to the dot-plot. The Trump administration hired former Reagan administration official and CNBC commentator Larry Kudlow as its new chief economic advisor, following the resignation of Gary Cohn.3,4 Business growth looked good in the first quarter; correspondingly, so did hiring. The Institute for Supply Management’s factory PMI went from 59.1 to 60.8 to 59.3 across three months; ISM’s service sector gauge was also very high at readings of 59.9 in January and 59.5 in February. January saw a net job gain of 239,000 hires by the Department of Labor’s estimation, and February brought an even more impressive net gain of 313,000. The headline jobless rate stayed at 4.1% in January and February, and the U-6 rate, counting the underemployed, remained at 8.2% in both those months.5

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Inflation became a worry during the quarter, but fears that it was running away subsided. There was a halfpercent spike in the headline Consumer Price Index in January, plus a 0.3% gain for the core CPI. A month later, both the headline and core CPI moved but 0.2%. By February, annualized consumer inflation was running at 2.2%, core inflation at 1.8%. Wholesale inflation pressure was greater: the year-over-year advance in the Producer Price Index through February was 2.8%. Speaking of production, industrial output was up 4.4% in the 12 months ending in February; durable goods orders rose 3.1% in February after a 3.5% January decline.5 Consumer incomes rose 0.4% in both January and February, paralleled by consecutive 0.2% gains in consumer spending. Another indicator from the Department of Commerce seemed to show consumers were saving rather than buying: overall retail sales fell 0.1% in February following a 0.1% January increase. The Bureau of Economic Analysis showed real consumer spending at 4.0% in the fourth quarter, a major factor in the 2.9% expansion of the economy. (That number was an upgrade from the BEA’s second estimate of Q4 GDP, which was 2.5%.)5 Consumer confidence indices posted very high readings. The successive marks for the University of Michigan’s monthly index in the quarter: 95.7; 99.7; 101.4. The Conference Board’s index hit an 18-year peak of 130.0 in February before dipping slightly to 127.7 a month later.6,7 GLOBAL ECONOMIC HEALTH Things looked better for China’s economy as the quarter ended. The nation’s official manufacturing PMI rose 1.2 points to 51.5, marking the twentieth straight month of expansion for the P.R.C.’s factory sector. That reading was a point higher than the consensus in a Reuters survey. Economists polled by Reuters forecast China’s growth rate to decline slightly to 6.6% in the quarter; the Chinese government projected GDP of 6.8%. Vietnam looked like the star of Asian economies in the quarter; its GDP reached 7.4%, and its exports were up 22% year-over-year.8,9 The European Central Bank shifted policy slightly in the quarter. In its March policy statement, it removed references to the possibility of increasing its €30 billion-per-month bond purchase program if the global economic outlook worsened. It forecast euro area growth of 2.4% in 2018, 1.9% in 2019, and 1.7% in 2020.

In January, the Markit manufacturing PMI for the eurozone reached a 12-year peak of 58.8. Economists worried about Italy’s sharp swing toward nationalism, as voters embraced two radical-right parties, the Five-

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Star Movement and the League, in its latest national election. The fear was that renewed populist sentiment might build and lead Italy to vote to abandon the euro and head back to the lira.10,11 WORLD MARKETS Next to the Nasdaq Composite, Hong Kong’s Hang Seng had the best Q1 of any notable stock benchmark: it rose 0.58% in the first three months of 2018.12 The FTSE 100 took the hardest fall: the United Kingdom’s marquee index plunged 8.21%. Germany’s DAX tumbled 6.64%, and the Nikkei 225 had a quarter almost as poor, dropping 5.76%. Canada’s TSX Composite lost 5.19% in Q1, and Australia’s All Ordinaries retreated 4.84%. In China, the Shanghai Composite finished the quarter 4.18% lower. France’s CAC 40 lost 3.43%, and India’s BSE Sensex slumped 3.20%. MSCI’s two closely watched benchmarks rode through the turbulence without much damage: the MSCI World index fell 1.80%, and the MSCI Emerging Markets index, 0.93%.12,13 COMMODITIES MARKETS Bitcoin was the worst-performing major commodity of the quarter. CME bitcoin futures lost 39.69% in three months, with the price settling at $7,903.94 on March’s last market day. S&P 500 VIX futures led the commodities pack in the quarter, rising 41.26%.14,15 Other notable commodity and currency gains and losses in Q1: cocoa, +35.02%; soybean meal, +19.96%; lumber, +18.82%, the Mexican peso, +10.17%; corn, +8.01%; WTI crude, +7.83%; soybeans, +7.37%; cotton, +3.17%; wheat, +2.44%; orange juice, +2.39%; the U.S. Dollar Index, -2.01%; silver, -5.12%; coffee, -8.09%; palladium, -9.64%; #11 sugar, -17.78%. Gold gained 0.81% for the quarter; unleaded gasoline, 1.33%.

Platinum retreated 1.17%. On March 29, WTI crude settled at $64.94 per barrel on the NYMEX; gold and silver respectively closed at $1,327.30 and $16.27 on the COMEX.14,16 REAL ESTATE In the first quarter, home loans certainly became more expensive. On March 29, Freddie Mac’s Primary Mortgage Market Survey showed the interest rate on a conventional mortgage at 4.44%, up from 3.99% on December 28. Rates also climbed for 15-year FRMs and 5/1-year ARMs. Average interest on the 15-year fixed rose from 3.44% to 3.90% in the same time frame, and from 3.47% to 3.66% for the 5-year adjustable-rate home loan.17,18 After falling for two straight months, existing home sales improved 3.0% in February – even as some serious headwinds threatened to hold sales back. The median house price had risen 5.9% in a year (to $241,700); mortgage interest rates were climbing, and there was a distinct shortage of affordable properties for buyers – but demand overruled all of that. Economists surveyed by Reuters had forecast that the National Association of Realtors would announce a February sales gain, but just one of 0.5%; NAR said that resales were up 1.1% year-over-year through February. New home buying, according to the Census Bureau, declined for a third consecutive month in February. The 0.6% dip occurred even with new home supply at a 9-year high, and the median price, down 0.9% from a peak reached in November. Through February, new home sales had strengthened 0.5% in 12 months.19,20 The NAR’s pending home sales index partly reversed its 5.0% January retreat with a 3.1% February advance.

Building permits improved 5.9% in January, then slumped 5.7% a month later; housing starts were up 10.1% in January, then fell 7.0% in February. The 20-city S&P CoreLogic Case-Shiller Home Price NSA Index rose 0.3% in its January edition, taking its yearly gain to 6.4%.5 “Time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent. Be careful lest you let other people spend it for you.” ~ Carl Sandberg

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LOOKING BACK…LOOKING FORWARD At the end of Q1, the Nasdaq Composite had managed a decent YTD advance, unlike the Dow Jones Industrial Average, S&P 500, or Russell 2000. (The Russell also had a negative quarter, losing 0.40%.)

The PHLX Oil Service index brought up the rear among U.S. equity indices during Q1, retreating 9.27%.

Volatility sent the CBOE VIX jumping: the “fear gauge” of the stock market climbed 80.89% for the quarter.

On March 29, the Dow settled at 24,103.11; the S&P, at 2,640.87; the Nasdaq, at 7,063.44; the Russell, at 1,529.43; the VIX, at 19.97.1 % CHANGE DJIA NASDAQ S&P 500 REAL YIELD 10 YR TIPS

Q1 CHG -2.49 +2.32 -1.22 3/29 RATE 0.69%

2017 +25.08 +28.24 +19.42 1 YR AGO .41%

1-YR CHG +16.67 +19.77 +11.85 5 YRS AGO -0.64%

10-YR AVG +9.73 +21.24 +10.08 10 YRS AGO 1.13%

Sources: wsj.com, bigcharts.com, treasury.gov – 3/29/181,21,22,23,24 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

As a tough quarter for stocks becomes history, signs of a trade war have surfaced. What could the second quarter hold? All three major indices (and oil futures) sold off significantly as Q2 began. Investors hope that the March jobs report and the start of a new earnings season will restore some optimism to the market.

Housing and retail sales aside, fundamental economic indicators have looked good for the most part. The anticipation (and results) of this coming earnings season could take investors’ minds off recent headwinds, but a continuation of the marked volatility we witnessed in the first quarter would not be a surprise. If earnings can distract Wall Street away from concerns about trade, the slump in tech shares, and the Fed’s plans for tightening; then, the tone might be set for a better month and quarter than some investors expect.

For now, the feeling that a promising year for equities might turn into a poor one persists.25 1 - markets.wsj.com/us [3/29/18] 2 - tinyurl.com/y8vpf983 [4/2/18] 3 - marketwatch.com/story/fed-lifts-rates-in-powells-first-meeting-says-outlook-has-strengthened-2018-03-21 [3/21/18] 4 - time.com/5197983/larry-kudlow-replace-gary-cohn-what-to-know/ [3/14/18] 5 - investing.com/economic-calendar/ [4/2/18] 6 - tradingeconomics.com/united-states/consumer-confidence [4/2/18] 7 - conference-board.org/data/consumerconfidence.cfm [3/27/18] 8 - globaltimes.cn/content/1096148.shtml [4/1/18] 9 - bloombergquint.com/global-economics/2018/03/29/vietnam-s-economy-expands-more-than-7-in-first-quarter [3/29/18] 10 - dw.com/en/eurozone-central-bank-inches-toward-stimulus-exit/a-42885507 [3/8/18] 11 - dailysabah.com/economy/2018/03/06/italian-vote-trade-concerns-darken-europes-economic-outlook [3/6/18] 12 - news.morningstar.com/index/indexReturn.html [4/1/18] 13 - msci.com/end-of-day-data-search [3/29/18] 14 - barchart.com/futures/performance-leaders?viewName=chart&timeFrame=3m [4/1/18] 15 - coindesk.com/price/ [3/29/18] 16 - money.cnn.com/data/commodities/ [3/29/18] 17 - freddiemac.com/pmms/archive.html [3/29/18] 18 - freddiemac.com/pmms/archive.html?year=2017 [12/28/17] 19 - reuters.com/article/usa-economy-housing/u-s-existing-home-sales-jump-in-february-idUSL1N1R21Q3 [3/21/18] 20 - zillow.com/research/january-new-home-sales-19118/ [3/26/18] 21 - markets.wsj.com/us [12/29/17] 22 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F29%2F17&x=0&y=0 [3/29/18] 22 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F29%2F17&x=0&y=0 [3/29/18] 22 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F29%2F17&x=0&y=0 [3/29/18] 22 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F08&x=0&y=0 [3/29/18] 22 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F08&x=0&y=0 [3/29/18] 22 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F08&x=0&y=0 [3/29/18] 23 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/29/18] 24 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/29/18] 25 - marketwatch.com/ [4/2/18]

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The Power of Compounding This is the factor that could really build wealth for young adults.

Most wealth is built gradually. Sometimes it is built without any great financial sacrifice. You can cite one factor that promotes wealth building perhaps more than any other – the power of compounding.

If you are decades away from retirement, you have a great opportunity to put that potential on your side by saving and investing through a tax-deferred retirement account.

The next three paragraphs will show you just how remarkable the compounding in one of these accounts can be. These are hypothetical examples, but the math is certainly compelling.

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As Michael enters his thirties, he starts contributing to the retirement plan sponsored by his employer. He initially puts $500 into the plan and directs $500 a month into the plan thereafter. He keeps doing this, month after month, and his invested assets benefit from a consistent 7% return. Michael retires at age 65. After 35 years, how much does his retirement plan account contain under these conditions? $210,000? No, those are just his total contributions across 35 years. With annual compound interest, at age 65 the account would contain $865,883.1

Twenty-five-year-old Megan works for the same employer, and she decides to start saving for retirement five years before her co-worker Michael. Like Michael, she retires at 65. Like Michael, she directs an initial $500 into her account and $500 per month thereafter, with the investments in the account returning 7% a year.

The only difference is that she begins to save for the future five years earlier. At age 65, she is looking at $1,250,246.1 In the late stages of retirement saving, the effect of compounding grows. Twenty years after opening her retirement plan account at work, Megan sees a balance of $257,138.

Just ten years later, the balance has ballooned to $591,839. A decade later, it has more than doubled again to $1.25 million.1 Three other factors are aiding the growth of Michael’s and Megan’s accounts. One, tax deferral; there was no yearly subtraction of assets. Two, a consistently good rate of return for the investments; there were no bad years, nor were there any spectacular ones. Three, they left the money alone; they refrained from taking loans or early withdrawals from their retirement plans.

These examples do disregard some realities. Retirement accounts come with administrative fees, and those annual fees (which in some cases can top 1%) can effectively eat into returns. As Money pointed out recently, the difference between a 1% annual fee and a 0.25% annual fee could mean $100,000 or more in lost compounding over 30 years. The annual return on an account may of course vary greatly from year to year; real world investment performance is not so consistent. On a positive note, the examples also ignore the reality that many people increase their retirement contributions with age as their income rises. So, inflows into these accounts may grow and enhance compounding.2 The basic lesson, however, is clear. If you are a young investor with a chance to direct money into a tax-deferred retirement savings account, begin saving and investing for the future now. Time is truly on your side. If you wait ten or twenty years, you may have to contribute uncomfortably large amounts of money to your account each year to try and catch up to where you want to be in terms of saving – amounts your household finances may not permit.

1 - bankrate.com/calculators/savings/compound-savings-calculator-tool.aspx [3/8/18] 2 - time.com/money/5137127/retire-richer-401k-mutual-fund-fees/ [2/15/18]

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Time, Treasure, and Talent Reasons why you should consider establishing a Private (Family) Foundation Account with Jamestowne Investments As responsible citizens concerned with improving the world in which we live, we all have our personal charitable interests. While giving can take many forms, are you ready to explore the options of establishing your individualized Family Foundation? Donor Advised Funds offered through the American Endowment Foundation and Jamestowne Investments offer many benefits to charitably minded people and can streamline your giving activities. Here is a list of potential benefits of opening a Private Family Foundation account:

in conjuntion with

• Maintain complete flexibility regarding when you give, who you give to, and how much you give.

• Ability to contribute highly appreciated assets without incurring negative tax consequences • Ability to track giving with a single and simple to use online management platform • Support charities that cannot accept non-cash donations • Maintain the ability to remain anonymous with some of your giving bequests • Donate to both domestic and internationally recognized charities Let us know if you would like to learn more about the benefits and opportunities available to you with an American Endowment Foundation account. The AEF platform offers unparalleled flexibility with minimal management expense and allows you the opportunity to maximize your personal charitable activities so you can give the most to the ones who need the most.

Give the most to the ones who need the most!

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Chesapeake Bay Scrumptious and Easy Crab Cakes Recipe by Barbara Robertson Carper Ingredients

1 pkg. Old Bay Crab Cake Classic Mix (found in the spices section at Walmart or local grocery) ½ cup Mayo Several shakes of Texas Pete’s hot sauce 1 lb. fresh crab meat

Preparation

Mix first three ingredients in large bowl and then fold in the crab meat Shape into domes and brown in a skillet or broil in oven on parchment paper Garnish with lemon wedges Makes 6 large crab cakes

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Newsletter Disclosures Securities and advisory services offered through Prospera Financial Services, Inc. Member FINRA/SIPC. The below material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks.

The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. The Hang Seng Index is a free float-adjusted market capitalization-weighted stock market index that is the main indicator of the overall market performance in Hong Kong. The FTSE 100 Index is a share index of the 100 most highly capitalized companies listed on the London Stock Exchange. The DAX 30 is a Blue Chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. Nikkei 225 (Ticker: ^N225) is a stock market index for the Tokyo Stock Exchange (TSE). The Nikkei average is the most watched index of Asian stocks. The S&P/TSX Composite Index is an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange (TSX) as measured by market capitalization.

The All Ordinaries (XAO) is considered a total market barometer for the Australian stock market and contains the 500 largest ASX-listed companies by way of market capitalization. The SSE Composite Index is an index of all stocks (A shares and B shares) that are traded at the Shanghai Stock Exchange. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. BSE Sensex or Bombay Stock Exchange Sensitivity Index is a value-weighted index composed of 30 stocks that started January 1, 1986. The MSCI World Index is a free-float weighted equity index that includes developed world markets, and does not include emerging markets. The MSCI Emerging Markets Index is a float-adjusted market capitalization index consisting of indices in more than 25 emerging economies. The U.S. Dollar Index (USDX, DXY, DX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partner currencies. The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index. The PHLX Oil Service Sector Index (OSX) is a modified market weighted index composed of companies involved in the oil services sector. The CBOE Volatility Index® is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.

MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

Retirement Planning Weak Spots Quarterly Economic Update The Power of Compounding

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By providing the highest level of customer service and communication, we strive to personally guide and inspire each client’s unique journey towards financial success, investment confidence, and fiscal well-being.

Securities and advisory services offered through Prospera Financial Services, Inc. Member FINRA/SIPC.