Clear Rock Market ChartBook

1. MARKET CHARTBOOK

2. 2 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The Good News.. Consumer Sentiment & Inflation Expectations “June @UMich Sentiment ticked up to 86.4 vs. 84.4 est. & 82.9 in prior month; still below April level … 5-10yr inflation expectations ticked down to 2.8% vs. 3% prior; for what it’s worth, recent spike to 3% was still lower than 3.2% in 2011 and 3.4% in 2008” – Liz Ann Sonders

3. 3 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The Good News.. Job Openings “JOLTS job openings continuing to go parabolic at 9.29M in April vs. 8.2M est. & 8.29M in prior month; clearly a fresh record high … job opening rate at 6% vs. 5.4% prior; pace of hiring unchanged at 4.2%; quits rate at 2.7%” – Liz Ann Sonders

5. 5 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The Bad News.. Inflation & Price Pressures Source: Guilford, Gwynn. “U.S. Inflation Is Highest in 13 Years as Prices Surge 5%.” The Wall Street Journal, Dow Jones & Company, 10 June 2021, www.wsj.com/articles/us-inflation-consumer-price-index-may-2021- 11623288303?mod=hp_lead_pos1.

9. 9 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The State Of The Market.. The Transitory Argument “Still tough buying conditions … intentions to buy vehicles and homes have plunged to lowest since early 1980s per June @UMichSentiment survey” – Liz Ann Sonders

10. 10 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The State Of The Market.. The Transitory Argument “This is an incredible chart from @boes_. The number of CPI categories that have grown 2% YOY has actually fallen over the last couple of months (teal line)” – Joe Weisenthal

11. 11 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The State Of The Market.. The Transitory Argument “So used car prices up another 7.3%, which by my math accounts for about a third of the total CPI jump in May.” – Neil Irwin Ultimately.. • “Higher inflation was expected in any version of this recovery • The argument that inflation will be temporary is not disproven by higher inflation now • Trends to watch: Is there big wage inflation? Do longer- term bond yields show nervousness? Do home prices keep up their surge?” - Victoria Guida

12. 12 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The State Of The Market.. Corporate Debt Source: Goldfarb, Sam. “Pandemic Hangover: $11 Trillion in Corporate Debt.” The Wall Street Journal, Dow Jones & Company, 14 June 2021, www.wsj.com/articles/pandemic-supercharged-corporate-debt-boom-record- 11623681511?mod=searchresults_pos1&page=1.

14. 14 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The State Of The Market.. Real Yields.. “Pretty amazing but High Yield has now a negative real yield (YTW - CPI) - - HY spreads are low and investors get a negative real return on the riskiest slice of the bond market” - @Marcomadness2

16. 16 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. “S&P 500 real earnings yield continuing to plunge; now at its lowest since November 1980” – Liz Ann Sonders The State Of The Market.. Real Yields..

17. 17 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. The State Of The Market.. Deals Everywhere Source: Driebusch, Corrie. “Robinhood and Didi to Kick Off a Hot IPO Summer.” The Wall Street Journal, Dow Jones & Company, 10 June 2021, www.wsj.com/articles/robinhood-and-didi-to-kick-off-a-hot-ipo-summer-11623317400. Source: Lachapelle, Tara. “Wall Street Is Dealing Like It's 2007.” BloombergQuint, 8 June 2021, www.bloombergquint.com/gadfly/private-equity-buyout-deals-are-on-track-for-record.

18. 18 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED. Story Of The Week.. Pension Funds Entering Housing Market “You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose eponymous real estate consulting firm estimates that in many of the nation’s top markets, roughly one in every five houses sold is bought by someone who never moves in. “That’s going to make U.S. housing permanently more expensive,” he said. The consulting firm found Houston to be a favorite haunt of investors who have lately accounted for 24% of home purchases there. “A lot of things that would have been for-sale housing are going to be for-rent housing,” said Josh Zegen, Madison’s managing principal. Source: Dezember, Ryan. “If You Sell a House These Days, the Buyer Might Be a Pension Fund.” The Wall Street Journal, Dow Jones & Company, 4 Apr. 2021, www.wsj.com/articles/if-you-sell-a-house-these-days-the- buyer-might-be-a-pension-fund-11617544801.

19. CONTACT US 19 Our Locations: Austin Office 9020 N. Capital of Texas Hwy Building I, Suite 345 Austin, TX 78759 Phone: 512-735-0222 Dallas Office 4809 Cole Avenue, Suite 345 Dallas, Texas 75205 Phone: 214-923-5756 Kerrville Office 707 Hill Country Dr # 114 Kerrville, Texas 78028 Phone: 830-315-2555 Charles F. Hall, Jr. Chairman Phone: 210-464-1030 Email: chuck@clearrockadvisors.com Ty Sanders Chief Executive Officer Phone: 512-576-1589 Email: ty@clearrockadvisors.com Royce W. Medlin, CFA, CAIA Chief Investment Officer Phone: 214-923-5756 Email: royce@clearrockadvisors.com Royce G. Itschner, CPA, CFP® Managing Director Phone: 830-315-2555 Email: rgi@clearrockadvisors.com Corey Long, CFP® Managing Director Phone: 832-693-8254 Email: corey@clearrockadvisors.com Aaron Lang Portfolio Analyst Phone: 469-623-1220 Email: aaron@clearrockadvisors.com Tamra Nix Operations Manager Phone: 830-315-2555 Email: tamra@clearrockadvisors.com ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED.

20. DISCLOSURE Clear Rock Advisors, LLC is registered with the SEC as a registered investment advisor with offices in Texas. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Clear Rock Advisors, LLC) or any investment-related or financial planning consulting services will be profitable, equal any corresponding indicated historical performance level(s), or prove successful. It remains the client’s responsibility to advise Clear Rock Advisors, LLC, in writing, if there are any changes in the client’s personal/financial situation or investment objectives for the purpose of reviewing, evaluating or revising Clear Rock Advisors, LLC’s previous recommendations and/or services, or if the client would like to impose, add to, or modify any reasonable restrictions to Clear Rock Advisors, LLC’s services. A copy of Clear Rock Advisors, LLC’s current written disclosure statement discussing its advisory services and fees are available upon request. 20 ©2021 CLEAR ROCK ADVISORS, LLC. ALL RIGHTS RESERVED.

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