August 20, People may hear your words, but they feel your attitude (John Maxwell, author, speaker

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1 David J. Klein Senior Vice President Financial Advisor The Auctus Group RBC Wealth Management Phone: Fax: Toll Free: website: August 20, 2018 People may hear your words, but they feel your attitude (John Maxwell, author, speaker Weekly Update: From time to time the weekly update might skip a week or two due to other timely considerations such as family, social, or other important considerations. I hope you will understand and continue to be faithful and loyal readers. My Website: The latest edition of RBC s Global Insight is in the middle of the front page while RBC s Investor s Edge is on the bulletin board on the right side of the main page. Please note the other interesting articles and commentaries. Key Statistics Year-to-date a/o 8/17/2018 Dow: +3.84% S&P 500: +6.60% Nasdaq: % Treasury Bond Yields: Year- to-date a/o 8/17/ year Treasury: 2.44% 2-year Treasury: 2.61% 5-year Treasury: 2.75% 10-year Treasury: 2.87% 30-year Treasury: 3.03% --Yields have barely moved over the past several weeks --The spread between the 2-yr and 10-yr Treasury remains at a tight 26 basis points 2-Year Bond Comparison: Last week we showed you the percentage of European bonds that still have negative interest rates. Today s chart highlights the difference in yield of the 2-year sovereign bonds between the US, the Eurozone and Japan.

2 In perspective, it is interesting to note how high in yield our 2-year bond has risen since the debacle of The 2-year is now at 2.6% whereas it was as low as ½% just a few years ago. Markets: (Barron s, IBD, WSJ, RBC, MFS, Advisor Perspectives) For the week: Dow rose +1.41%, S&P 500 rose +0.59%, Nasdaq fell (-0.29%) Dow gained over 350 points despite turmoil over Turkey The longer the economic expansion lasts, the longer the bull market lasts (Ed Yardeni economist, Investment Strategist) This bull market has been described as one of the most hated in history as investors have found reasons not to invest (Barron s)

3 Kudos to the Long-Term Investor We recognize the thoughts, concerns, worries, doubts that run through an investor s mind at various times of the year. The day-to-day problems and shifting of emotions can upset anyone at any time. Yet, when you compare the long-term to the short-term, a different picture arises. We have long been advocates of purchasing quality, dividend-paying stocks. Look how well this kind of investor has done over the past 20 years through the power of compounding. The following chart shows how a diversified investor has done since 1950 by having a portfolio of stocks and bonds. The longer you wait, the more the volatility smoothens out. It takes patience.

4 Where to Now? The following chart provided by Lord Abbett still points to world growth and no immediate recession. Question of the Week: FAANG is a term frequently used to identify 5 different heavily-traded companies. Name these 5 companies. Question and Answer From Last Week: The 10-year Treasury note has traded in the USA since What was its lowest closing yield ever Answer: Although the 10-year note has traded since 1790, the lowest yield on the note occurred just 2 years ago at 1.36% on 7/18/2016 Did You Know: Even after reducing their traditional August recess to just a single week out of Washington this year, senators will still have 13 weeks of vacation during calendar year 2018, i.e., 3 months (BTN, Senate) More than half (55%) of the manufacturing in the world is done in just 4 countriew: China, the United States, Japan and Germany. (BTN Research, United Nations Conference on Trade and Development) Sports Trivia: 1920 was Babe Ruth s first year with the New York Yankees. That year, the team attracted million fans for their 77 home games. The Yankees were the first MLB team to top the 1 million mark in attendance. Ruth died of throat cancer on 8/16/48, 70 years ago (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 Corporation, Member NYSE/FINRA/SIPC.