NEW YORK INVESTING MEETUP September 27, 2016 Eric Parnell, CFA Gerring Capital Partners

U.S. Presidential Election: Why Should Investors Care? The U.S. Economy is the largest in the world: Greater than 25% of global GDP The President of The United States is charged with carrying out fiscal policy that influences GDP Government spending: 18% of U.S. GDP Taxation Regulation Deficits & Debt Entitlements International trade GDP drives corporate earnings, which drive stock prices Source: Gerring Capital Partners

Let’s Not Forget Arguably The Most Powerful Person In The World Janet Yellen Chair U.S. Federal Reserve Source: Gerring Capital Partners, Real Clear Politics

43.1% 41.5% Too Close To Call Hillary Clinton Donald Trump Democrat Republican 43.1% 41.5% Source: Gerring Capital Partners, Real Clear Politics

The Middle 20% Decide Elections: Where Are They Today? Source: Gerring Capital Partners, Wikipedia

Voting For, Or Voting Against? The Power Of “No” Hillary Clinton Democrat Donald Trump Republican Gary Johnson Libertarian Jill Stein Green 43.1% 41.5% 7.4% 2.4% Undecided/Other: 5.6% Source: Gerring Capital Partners, Real Clear Politics

Who Is Wall Street Rooting For? July 27 to August 27: From Trump +1 to Clinton +6 S&P 500 Index +0.64% August 27 to September 19: Clinton +6 to Clinton +1 S&P 500 Index -1.89% September 19 to September 27: Clinton +1 to Clinton +3 S&P 500 Index +0.97% Source: Gerring Capital Partners, Real Clear Politics, S&P

No Lame Duck Market 66% Winning Percentage 79% Winning Percentage S&P 500 Index Price Return From November to January During Election Years Since 1900 S&P 500 Index Price Return From November to January During Election Years Since 1960 66% Winning Percentage 79% Winning Percentage Source: Gerring Capital Partners, S&P

Stocks Respond To Both Republicans & Democrats S&P 500 Index Price Return From November to January During Election Years Since 1960 S&P 500 Index Price Return From November to January During Election Years Since 1960 Republican - Up 5 of 7 Democratic – Up 6 of 7 Source: Gerring Capital Partners, S&P

Winners U.S. Large Caps Multinationals Hospitals & Managed Care Solar Energy Dividend Stocks U.S. Small Caps Domestics Pharmaceuticals & Biotech Fossil Fuels Regional Banks Defense Infrastructure Source: Gerring Capital Partners, Real Clear Politics

The Biotech Bear Source: Gerring Capital Partners, Real Clear Politics

Is The Third Time A Charm? William Howard Taft Herbert Hoover George H.W. Bush Source: Gerring Capital Partners, Wikipedia

Late Stages Of The Secular Market Cycle Source: Gerring Wealth Management, Robert Shiller Online Data

Secular Bear Markets Need A Cleanse To End P/E Ratio 13.5 6.8 5.8 5.3 Source: Gerring Wealth Management, Robert Shiller Online Data

Disclosure: This presentation and the discussion related to the presentation is for information purposes only. There are risks involved with investing including loss of principal. Gerring Capital Partners makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made. There is no guarantee that the goals of the strategies discussed by Gerring Capital Partners will be met.