Mid-Year State of the Market Investment Advisory Services offered through AE Wealth Management LLC, an SEC Registered Investment Advisor. 891266

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1st Half Recap Q1 was one of the best quarters in recent memory The markets took off Government shutdown ended The Fed reversed its rhetoric on raising rates Optimism for China Trade Deal – later shattered and a trade war with China ensued S&P 500 & Nasdaq hit all-time highs Volatility returned in April and May was rough Nasdaq & S&P 500 – 4 straight weeks of losses The Dow - 6 weeks of losses Economic Reports were strong Earnings were good

1st Half Recap By late May, Markets bounced back Nearly all S&P 500 companies reported earnings by late April 76% reporting positive earnings per share surprises 59% reporting positive revenue surprises Unemployment bounced up to 4.0% during the government shutdown; dipped back down to 3.6% in Q2 Q1 2019 GDP – grew 3.1% The Federal Reserve shifted its stance on interest rates – now talking about cutting rates. The Nasdaq and S&P 500 were back to record highs U.S. equity markets ended the month of June up over 7% All in all – it’s been a rollercoaster but we’ve come out ahead so far!

Mid-Year Outlook + 4 - 6% Predictions: No recession this year Slower, more volatile 2nd half to the year Potential for short-term corrections But overall expecting another 4-6% increase What could impact this one way or the other? A deal with China Interest Rate Cuts Tension in the Gulf + 4 - 6%

What Now? Stay disciplined Review your goals with your advisor – have they changed? If not, stick with the plan! As always – Diversify!