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VIX Index

High of 37.32 on 05 Feb 2018

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Macroeconomic Market Report

Volatility Drivers

Public Policy Uncertainty

  • Trump Tweets (Geopolitical tensions)

    • China, Russia, Syria, Iran & North Korea

Tariffs

  • Possible trade war, but it looks as if we are making progress

    • China is coming to the table to negotiate (auto industry for starters)

Rising Interest Rates

  • Try to head off inflation

  • Expenses have gone up (shipping costs, etc)

  • Costs cutting into margins

Earnings Season Right Now

Current Uncertainty is Recipe for Continued Volatility for Foreseeable Future

  • Presents buying opportunities for us


Positive foundation / backdrop

Strong Job Market

  • Unemployment low

  • People investing and buying

  • Favorable access to credit

Earnings Growth

  • Double digit percentages

Healthy Amount of Skepticism in Market because of Volatility

  • Investor sentiment

  • Valuations are not real chap on P/E basis

Low Corporate Tax Structure

  • More globally competitive