Take risks: If you win you will be happy; if you lose, you will be wise (Unknown)

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1 David J. Klein Senior Vice President Financial Advisor The Auctus Group RBC Wealth Management Phone: Fax: Toll Free: website: April 9, 2018 Take risks: If you win you will be happy; if you lose, you will be wise (Unknown) My Website: In the middle of the front page is a report on the Global Market Outlook from RBC. The latest edition of RBC s Investors Edge is on the bulletin board on the right side of the main page. Many interesting articles and commentaries. Please take a look. Key Statistics Year-to-date a/o 4/6/2018 Dow: (-3.18%) S&P 500: (-2.59%) Nasdaq: +0.17% Treasury Bond Yields: Year- to-date a/o 4/6/ year Treasury: 2.06% 2-year Treasury: 2.27% 5-year Treasury: 2.58% 10-year Treasury: 2.77% 30-year Treasury: 3.01% Markets: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) For the week: Dow fell (-0.71%), S&P 500 fell (-1.38%), Nasdaq fell (-2.10%) All 3 indexes have fallen in 3 of the past 4 weeks Markets were up for the week before Friday s downdraft Dow fell 572 points Stocks rattled by fear of trade war with China Stocks also fell on jobs report that came in below expectations could have been the weather Volatility is back: (Barron s) --S&P 500 moved more than 1% in either direction on 23 days in the 1 st quarter - triple the number of such days for all of Since 1958, there have been 9 other years of 1% moves on more than 20 days in the first quarter

2 Bull Markets: We have been in a bull market for the past 9 years. Despite corrections, pullbacks, and volatility, bull markets have lasted much longer than bear markets. The long-term investor has done quite well. It is our opinion that the long-term investor should minimally think in terms of 3-5 years in a well-diversified portfolio. Past performance is no guarantee of future results. Timing the Market is Difficult: The following chart shows how missing some of the best days can destroy your long-term return. As the old saying goes, It s time in the market, not market timing.

3 Earnings: Over the long term, it is basically earnings that drive the performance of stock prices. Markets eventually recognize the value of a company through its earnings. The upcoming earnings season may hopefully shift the focus to corporate fundamentals and soothe market volatility. Economic News: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) US economy grew 2.9% in the last quarter of 2017 greater than expected For all of 2017, the economy grew 2.3%, after growing 1.5% in ,000 jobs created in March well below expectations Average hourly earnings rose 2.7% vs. a year earlier Unemployment rate holds at 4.1% US auto sales grew strongly in March March was another strong month for the manufacturing sector Trump doubles down on trade rhetoric with China Trade deficit widened in February for the 6 th straight month to $57.6 billion widest it has been since October, 2008

4 Trade Deficit with China: The US Census Bureau reports that for the year 2017, the US imported over $500 billion in goods compared to over $130 billion in goods that were exported. Question of the Week: The year 1926 is considered to be the beginning of the modern era for the stock market. As measured by the S&P 500, how many years have been positive and how many years have been negative? Question and Answer From 2 Weeks Ago: What is the classic definition of a BEAR market? Answer: One of the classic definitions of a bear market is a decline of 20% or more from the previous high. Did You Know: Healthcare spending makes up 18% of the $20 trillion US economy, equal to $11,000 per year for each of our nation s 327 million citizens. (BTN Research, Centers for Medicare & Medicaid Research) Student loan debt has doubled over the past 8 years. As of 12/31/17, student loan debt totaled $1.38 trillion compared to $690 billion a/o9/30/2009. (BTN Research, Fed. Reserve Bank, NY) Sports Trivia: Everyone was interested in the final 4 NCAA basketball game between Loyola University of Chicago and Michigan. Interestingly, Loyola has an annual athletic department spending of $10 million compared to the athletic department spending of $155 million at the University of Michigan. (BTN Research, Universities of Loyola and Michigan) Referrals: Many sincere thanks for your referrals of family, friends, and associates. I am deeply appreciative.

5 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 Corporation, Member NYSE/FINRA/SIPC.