1. The month of June has historically produced one of the poorer average stock market performances according to data on the S&P 500 index from 1992-2016, ranking 11th out of 12 months. 2. Over the last 25 years, the average total return for the S&P 500 during the summer months of June, July and August has been a small loss of 0.1%. 3. Between now and the end of 2018, the Federal Reserve has scheduled 13 meetings to consider further gradual interest rate hikes, with economists projecting a total of 5 quarter-point increases by the end of the year.

1. BY THE NUMBER$ Week of May 30, 2017
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1. CLOSE TO THE BOTTOM - June is ranked 11th out of the 12 months for average total return performance of the S&P
500 stock index since 1992, i.e., the last 25 years. Only the month of August has historically produced a poorer average
stock performance than June. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group
representation. It is a market value w eighted index w ith each stock's w eight in the index proportionate to its market value
(source: BTN Research).
2. BREAKEVEN - The 3 summer months (June-July-August) have produced an average loss of 0.1% (total return) for
the S&P 500 stock index over the last 25 years, i.e., 1992-2016 (source: BTN Research).
3. THEY ARE NOT DONE YET - Betw een now and the end of 2018, the Federal Reserve has 13 scheduled meetings.
The median estimate of Federal Open Market Committee (FOMC) policymakers suggests 5 separate rate hikes of ¼ of
1% each w ill occur by 12/31/18. The next Fed meeting is June 13-14 (source: Federal Reserve).
4. TOO PESSIM ISTIC - An annual survey of Americans at least age 65 gave the US stock market at least a 50% chance
of rising in the upcoming year only 1 time over 12 annual surveys that w ere conducted from 2002-2013. The US stock
market (as measured by the S&P 500) w as actually up 10 of the 12 years (dow n in 2002 and 2008), gaining +105% (total
return), an average of +6.2% per year (source: University of Michigan).
5. VERY SENSITIVE - The “duration” of the current 3% coupon, 30-year Treasury bond w as 19.764 “years” as of last
Friday 5/26/17, i.e., if interest rates go up just 15 basis points on the 30-year bond, the resulting 3% bond price decline
w ould completely offset the bond’s 3% coupon over a 1-year time horizon (source: Ryan ALM).
6. M AKING REGULAR PAYM ENTS - 11.0% of college student loans are at least 90 days delinquent as of 3/31/17. Just
3.8% of auto loans are at least 90 days delinquent as of 3/31/17. Both rates represent the percentage of loans
delinquent calculated on a “dollar” basis and not on a “per loan” basis (source: Federal Reserve Bank of New York).
7. STUDENT LOANS – Within 4 years of their 2008 graduation from college, 69% of individuals w ith student loans w ere
making regular payments on the debt, 17% had fully repaid the debt, 9% w ere making no payments and 5% had
already defaulted on the loans (source: National Association of College and University Business Officers).
8. AFTER FIVE M ONTHS - The number of operating oil rigs and operating natural gas rigs in the United States is up
+38% YTD, reaching 908 operating rigs as of last Friday 5/26/17 (source: Baker Hughes).
9. UP, NOT DOWN - President George W. Bush, just a month into office, delivered his first address before Congress on
2/27/01. Bush encouraged members of Congress to “join me to pay down $2 trillion in our national debt during the next 10

2. years.” From 2/27/01 to 1/20/09 (the day Bush left office approximately 8 years later), the national debt of the United
States had increased $4.9 trillion to $10.6 trillion (source: Treasury Department).
10. SO HE THINKS - President Donald Trump released last Tuesday (5/23/17) a 10-year budget forecast that projects the
USA achieving a balanced budget (i.e., annual tax revenues equal to or greater than annual outlays) during fiscal year
2027. When the current fiscal year 2017 ends on 9/30/17, the USA w ill have failed to record a balanced budget in 52 of the
last 57 fiscal years, i.e., 1961-2017 (source: Congressional Budget Office).
11. LIVING ON THE EDGE - 44% of 6,600 adults surveyed in October 2016 could not pay for an unexpected $400
emergency expense out of cash reserves, forcing them to borrow the funds or liquidate an asset to pay the expense
(source: Federal Reserve’s Survey of Household Economics and Decisionmaking).
12. BORDERING STATES - Colorado had the lowest unemployment rate (2.3%) of any state in April 2017. New Mexico
had the highest unemployment rate (6.7%) of any state in April 2017 (source: Department of Labor).
13. NOT A CITIZEN AT BIRTH - There w ere 27.0 million “foreign-born” persons in the US labor force in 2016, comprising
16.9% of the American w orkforce. The percentage of “foreign-born” w orkers w as 13.3% in 2000 (source: Department of
Labor).
14. EXPENDABLE - 26% of 1,100 adults surveyed in April 2017 fear that it is “very likely or somew hat likely” that their
current job w ill be eliminated w ithin 20 years, replaced by technology, automation or a robot (source: Gallup).
15. FINALS FOES - LeBron James, 4-time NBA MVP, and Stephen Curry, 2-time NBA MVP, w ere both born in the same
hospital. James w as born on 12/30/84 at Summa Akron City Hospital in Akron, OH, the same hospital w here Curry w as
born just over 3 years later on 3/14/88 (source: ESPN).
The information contained in this presentation does notpurportto be a complete description and is intended for
informational purposes only.Any opinions are those ofthe content creator and not necessarilythose of Andrew
Kinney, JWC or JWCA. This information is notintended as a solicitation or an offer to buy or sell any security or
investmentproduct. Information is solelyintended for recipients in jurisdictions where Andrew Kinneyis licensed to
engage the investing public. Investments and strategies mentioned maynot be suitable for all investors.Andrew
Kinney and JWC/JWCA do not provide tax or legal advice. Always discuss anytax or legal matters with an
appropriate professional. The S&P 500 and other such indices are unmanaged,do notincur fees or expense,cannot
be invested into directly and individual investor’s results will vary. Pastperformance is no guarantee of future results.
As with all investments,income generating programs,etc.various risks mayexist and JWC/JWCA recommends you
consultwith your financial advisor prior to making any financial decisions.
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