Conformity is the jailer of freedom and the enemy of growth (John F. Kennedy)

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1 David J. Klein Senior Vice President Financial Advisor The Auctus Group RBC Wealth Management Phone: Fax: Toll Free: website: March 11, 2019 Conformity is the jailer of freedom and the enemy of growth (John F. Kennedy) Retirement Wealth Plan Analysis: Are you ready for retirement? Are you on track to achieve your retirement goals? Let us help you with our Wealth Plan Analysis based on your current situation and future expectations for a healthy retirement. Please click on the 4-page questionnaire that is attached to the current , answer the questions as best you can, and send it back. We will then follow up with you. Your IRA: Don t forget your yearly contribution for $5,500. For 2019 the maximum contribution is raised to $6,000. Those aged 50 years or older may add an extra $1,000 for both years. Please call for information on other retirement plans. My Website: Global Insight: 2019 Outlook is on the front page of the website. This is RBC Wealth Management s outlook for the New Year. Key Statistics Year-to-date a/o 3/8/2019 Dow: +9.10% S&P 500: +9.42% Nasdaq: % Treasury Bond Yields: Year- to-date a/o 3/8/ year Treasury: 2.53% 2-year Treasury: 2.45% - Yes, lower than the 1-year 5-year Treasury: 2.42% - Unbelievable - lower than the 1 and 2-year 10-year Treasury: 2.62% 30-year Treasury: 3.00% --Subdued economic growth keeps a lid on interest rates

2 Markets: (Barron s, IBD, WSJ, RBC, MFS, Reuters, Advisor Perspectives) For the week: Dow fell (-2.21%), S&P 500 fell (-2.16%), Nasdaq fell (-2.46%) Markets traded down on disappointing economic data yet unemployment rate of 3.8% is still lower than it was a year ago Global equities also traded down on Europe s sluggish economy Oil declined slightly to $55.26/barrel Volatility, as measured by the VIX, rose from 13.5 to 17.8 Latest Market Run: Since the market bottom this past December, the S&P 500 and its 11 major sectors had a phenomenal upturn after a phenomenal downturn in Q4. Economic News: (Barron s, IBD, WSJ, RBC, MFS, Reuters, Advisor Perspectives) Unemployment rate dropped to 3.8% but February job growth slowed to 20,000 new jobs Job growth for January-Feb averaged 165,000 close to the business cycle s average Average hourly earnings advanced 3.4% y-o-y vs. expectations of 3.2% US trade deficit widened to historical high exports grew slower than imports US economic growth remains strong vs. world economic slowdown Rising US dollar boosted consumer and business spending Housing starts climbed over 18% in January after December s plunge

3 International News: Eurozone economy only grew 1.1% y-o-y in Q4 but showing signs of steadying (see chart) OECD (Org. for Econ. Coop. & Devel.) cites political uncertainty and trade tensions for weakness in global economy Chinese exports fell sharply in February amid economic slowdown US ended a preferential trade program with India and Turkey that gave them a zero tariff status Question of the Week: In economics, you often hear mention of GDP, the Growth Domestic Product. How is GDP normally defined? Question from Last Week: What is the market definition of dividend aristocrats? Answer: Dividend Aristocrats are those companies that have raised their dividends for at least 25 years in a row. As an example, Proctor and Gamble has raised its dividend for 60 consecutive years.

4 US Electricity: With almost 90% of our electricity produced by coal, petroleum, natural gas, and nuclear, will we be able to convert to wind, solar and alternative sources in the next years? Chart courtesy of Carl Tannenbaum, Northern Trust Did You Know: In national elections going back to 1928, the United States has elected 7 Republican presidents (beginning with Hoover and ending with Trump) and 7 Democratic presidents (beginning with FDR and ending with Obama). (BTN Research) The percentage of American workers that are members of a union has been cut in half over the last 35 years. That number has dropped from 23.1% in 1983 to 10.5% in Last year, Hawaii had the highest percentage of union workers while North Carolina had the lowest. (BTN Research, Department of Labor) Sports Trivia: The 2000 New York Yankees baseball team was the last major league team to repeat as World Series champs. The Boston Red Sox will attempt to repeat this year. (BTN Research, MLB)

5 Referrals: Many sincere thanks for your referrals of family, friends, and associates. I am deeply appreciative. Sincerely, David J. Klein Senior Vice-President Financial Advisor The views presented here are solely the views and opinions of David Klein and do not reflect the views of RBC Wealth Management, or its officers and directors. Data is believed to be from reliable sources, but we make no representation as to its accuracy or completeness. The Dow Jones Industrial Average covers 30 blue chip U.S. companies selected by the editors of the Wall Street Journal. The Dow represents about 25% of the NYSE market capitalization and less than 2% of NYSE issues. The Nasdaq Composite is a market-value weighted index that measures all NASDAQ domestic and foreign common stocks. The Standard and Poor s 500 is an unmanaged, capitalization weighted benchmark that tracks broad-based changes in the U.S. stock market. This index of 500 common stocks is comprised of 400 industrial, 20 transportation, 40 utility, and 40 financial companies representing major U.S. industry sectors. The index is calculated on a total return basis with dividends reinvested and is not available for direct investment. This material is based on data obtained from sources considered to be reliable. However, it is not guaranteed to accuracy and does not purport to be complete. The illustrations are for informational use only RBC Wealth Management does not provide tax or legal advice. All decisions regarding the tax or legal implications of your investments should be made in conjunction with your independent tax or legal advisor. RBC Wealth Management, a division of RBC Capital Markets