1. Stock Market Game Objective: to acquire and apply new saving and investing skills. http://stockmarketgame.org/login.html Advisor Login Username: VA_60_T330286

2. Economic Slowdown (US & World) Canneries in the Coal Mine Macy’s is closing stores Walmart is closing stores Transport stocks are down >20% Intel revenue growth is slowing Equities “could” go lower by another 10%

3. Dow Jones Industrial Average consists of the following 30 major American companies:

4. Company Stock Symbol Primary Group 3M Co.MMMDiversified Industrials American Express Co.AXPConsumer Finance AppleAAPLConsumer Electronics Boeing Co.BAAerospace Caterpillar Inc.CATCommercial Vehicles & Trucks Chevron CVX Integrated Oil and Gas Cisco SystemsCSCOBanks Coca-Cola Co.KOSoft Drinks E.I. DuPont de NemoursDDCommodity Chemicals Exxon Mobil Corp.XOMIntegrated Oil & Gas General Electric Co.GEDiversified Industrials Goldman SachsGSBanking and Financial Services Home Depot Inc.HDHome Improvement Retailers Honeywell International Inc.HONDiversified Industrials Intel Corp.INTCSemiconductors International Business Machines Corp.IBMComputer Services Johnson & JohnsonJNJPharmaceuticals JPMorgan Chase & Co.JPMBanks Kraft Foods KFT Food McDonald's Corp.MCDRestaurants & Bars Merck & Co. Inc.MRKPharmaceuticals Microsoft Corp.MSFTSoftware NikeNKEApparel  Pfizer Inc.PFEPharmaceuticals Procter & Gamble Co.PGNondurable Household Products Travelers Corp.TRVInsurance United Technologies Corp.UTXAerospace Verizon Communications Inc.VZFixed Line Telecommunications VisaVConsumer Banking  Wal-Mart Stores Inc.WMTBroadline Retailers Walt Disney Co.DISBroadcasting & Entertainment

5. DEFINITION of 'Standard & Poor's 500 Index - S&P 500' An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.stocksleading indicatorlarge cap

6. Bear market, generally defined as a 20% decline from a previous peak What’s the number? The S&P 500 Index’s Aug. 25 correction closing low of 1867.61. “The S&P below 1,875-1,925 spells ‘bear market’ and above 2,135 … spells ‘continuation of the bull market,’ ” wrote the bullish Ron Meisels in his Phases & Cycles newsletter According to some technicians, the next major support level would be the previous S&P 500 all-time high of 1,575, which it first surpassed in March 2013. That would mark a 26% declinefirst surpassed in March 2013 from its June 2015 all-time high.

7. News Driving the Markets DIVERGENCE IN MONETARY POLICY CYCLES (Interest Rates) THE U.S. BEGINS TIGHTENING – Raising short-term interest rates to a more normal range The Fed will often look at tightening monetary policy during times of strong economic growth or to curb inflation when it is rising too fastmonetary policyeconomic growth Fed would like to raise rates 4 more times Expect U.S. dollar to move higher as money flows into dollar-denominated US Export prices increase, while import prices decrease EUROPE CONTINUES EASING of short term interest rates to stimulate growth Companies can borrow cheaper money to make capital improvements Down-side - US dollar priced commodities are more expensive Oil prices stuck below $30 as investors brace for Iran oil World-wide storage facilities are near full capacity Saudi’s trying to break the back of US frackers by not cutting production

8. China contagion: How it ripples across the world World's second largest economy is slowing down, many fear, much faster than the Chinese government is admitting.fear, much Economic growth is drying up in Latin America. European companies are bracing for a sales dive. Smaller Asian economies are watching their currencies plummet. Even U.S. companies that have little exposure to China are getting hit. And people are losing jobs. Latin America for a sales divecurrencies plummet With the Chinese buying fewer goods or commodities, it's dragging down those countries' economies and commodity prices. Just about everyone with any connection to China is getting hit. Car companies like Ford (F), BMW (BAMXF) and Volkswagen (VLKAF) are seeing sales in China fall. Luxury brands such as Prada (PRDSF) and Coach (COH) have seen profits from China decline.FBAMXFVLKAFPRDSFCOH Australian steel company Bluescope Steel warned this week that it would close one of its plants because of worries about Chinese demand combined with low prices. The closure would lead to about 5,000 job losses.

9. He said visibility on earnings wasn’t likely to improve until late-January/early-February and stocks could trade sideways to even downward until investors get some idea on the state of corporations. Among Dow components: UnitedHealth Group Inc. UNH, -1.35% UNH, -1.35% International Business Machines Corp. IBM, - 2.17% report Tuesday;IBM, - 2.17% Goldman Sachs Group Inc. GS, -3.58% reports Wednesday;GS, -3.58% Verizon Communications Inc. VZ, -0.98%VZ, -0.98% American Express Co. AXP, -0.60% andAXP, -0.60% Travelers Cos. TRV, -1.76% report ThursdayTRV, -1.76% General Electric Co. GE, -1.96% reports Friday.GE, -1.96%

10. RECOMMENDED WEIGHT SECTOR S&P WEIGHT COMMENTS -OVERWEIGHT INFORMATION TECHNOLOGY 20.9% (Ian) – Tech remains one of our favored sectors. Relative to others, fundamental momentum supports an overweight position despite relative valuation levels that are approaching a 5-year peak. Relative performance remains strong. – The recent pullback in prices looks like a buying opportunity. FINANCIALS 16.6% (Tony) – Fundamental momentum is healthy relative to other sectors. Relative strength has improved slightly but has yet to turn positive. This could be a key sector in 2016 as – interest rate movements will have a direct impact on most of the subsectors in the space. CONSUMER DISCRETIONARY 13.0% (Melissa) – Job growth and lower energy prices provide the consumer with more discretionary income. – Fundamental results, valuation, and technical momentum all support an – overweight stance. EPS growth INTERNATIONAL HEADQUARTERS: THE RAYMOND JAMES FINANCIAL CENTER 880 CARILLON PARKWAY // ST. PETERSBURG, FL 33716 // 800.248.8863 RAYMONDJAMES.COM

11. EQUAL WEIGHT HEALTH CARE 15.0% (Melissa) Healthy earnings growth is expected to continue and the recent give-back in stock prices leaves the sector attractive on a valuation basis. Relative price performance has stabilized. We remain equal weight until technical trends improve further. INDUSTRIALS 10.0% (Tony) We move to an equal weight (from an overweight position) in this sector. Expected improvements for the sector did not materialize due to macro challenges in manufacturing and transportation. Relative price performance has failed to improve as well. CONSUMER STAPLES 9.9% (Thomas) Fundamentals have yet to improve. The path of the U.S. dollar will be key for this internationally-dependent sector. Relative valuation is slightly elevated vs. the 10-year average. Our equal weight is solely driven by the defensive nature of the sector due to the current challenging markets. INTERNATIONAL HEADQUARTERS: THE RAYMOND JAMES FINANCIAL CENTER 880 CARILLON PARKWAY // ST. PETERSBURG, FL 33716 // 800.248.8863 RAYMONDJAMES.COM

12. Underweight ENERGY 6.5% (Thomas) Industry adjustments to energy oversupply continue to weigh on fundamentals. With fundamentals and commodity prices in flux we remain underweight until signs that supply will clear. UTILITIES 2.9% Relative valuation is attractive but growth is slow. Momentum remains weak as the fear of rising interest rates presents an overhang on this interest sensitive sector. MATERIALS 2.8% Weak commodity prices continues to weigh on this sector. Although valuation is cheap relative to the 10-year average and earnings growth is projected to return in 2016, we remain underweight due to weak technical trends. TELECOM 2.4% While relative valuation is well below the 10-year average, slow growth is expected in 2016. The sector has seen a slight uptick in relative performance yet the intermediate trend remains pointed down, leaving us negative on this sector. INTERNATIONAL HEADQUARTERS: THE RAYMOND JAMES FINANCIAL CENTER 880 CARILLON PARKWAY // ST. PETERSBURG, FL 33716 // 800.248.8863 RAYMONDJAMES.COM

13. Objective: Look at each investment - Determine 52 Week (Hi/Low) - Current Price - 2015 Capital Gain or Dividends ( %) based on Highest Price - Use Highest Price to determine money lost by % (40, 30, 25, 20, 15, 10%) Town Hi/Lo: $22.64/$14.25 Dividend: 0.12 Div yield: 2.41% $19.93 (1/16) $22.64 x 40% = $9.06 ($13.58) $22.64 x 30% = $6.79 ($15.85) $22.64 x 25% = $5.66 ($16.98) $22.64 x 20% = $4.53 ($18.11) $22.64 x 15% = $3.40 ($19.24) $22.64 x 10% = $2.26 ($20.38)

14. Fidelity Mutual Funds Research https://www.fidelity.com/fund- screener/research.shtml https://www.fidelity.com/fund- screener/research.shtml

15. Fidelity ® Select IT Services Portfolio (FBSOX) Mid Cap Growth (*****) Hi/Lo: $42.09/$35.50 Capital gain (2015) $1.55 (4%) $39.70 (7/27) $40.14 8/20 $40.01 (12/11) $39.43 (12/18) $40.42 (12/24) $37.39 (1/8) $36.94 (1/16) $42.09 x 40% = $16.84 ($25.25) $42.09 x 30% = $12.63 ($29.46) $42.09 x 25% = $10.52 ($31.57) $42.09 x 20% = $8.42 ($33.67) $42.09 x 15% = $6.32 ($35.57) $42.09 x 10% = $4.21 ($37.88)

16. FID SELECT BANKING (FSRBX) Large Cap Value (***) Hi/Lo: $28.61/$22.44 Shares : 103.337 Capital gain (2015) $1.16 (4%) Capital gain (2014) $0.87 $26.05 (12/11) $25.25 (12/18) $25.96 (12/23) $23.42 (1/8) $22.44 (1/16) $28.61 x 40% = $11.44 ($17.17) $28.61 x 30% = $8.58 ($20.03) $28.61 x 25% = $7.15 ($21.46) $28.61 x 20% = $5.72 ($22.89) $28.61 x 15% = $4.29 ($24.32)

17. Fidelity Select Consumer Discretionary Portfolio (FSCPX) Large Cap Growth (***) Hi/Lo: $36.25/$31.09 Shares : Capital gain (2015) $1.13 (3%) Capital gain (2014) $2.51 $35.36 (8/18) $34.42 (8/20) $34.45 (12/11) $33.92 (12/18) $34.40 (12/23) $32.10 (1/8) $31.09 (1/16) $36.25 x 40% = $14.50 ($21.75) $36.25 x 30% = $10.88 ($25.37) $36.25 x 25% = $9.06 ($27.19) $36.25 x 20% = $7.25 ($29) $36.25 x 15% = $5.44 ($30.81) $36.25 x 10% = $3.63 ($32.62)

18. FIDELITY ADV HEALTH CARE-CL A (FACDX) Large Cap Growth (****) Hi/Lo: $45.41/$32.08 Capital gain (2015) $2.55 (7%) $37.45 (12/18) $42.67 (8/20) $35.68 (1/8) $34.72 (1/16) $45 x 40% = $18 ($27) $45 x 30% = $13 ($32) $45 x 25% = $11.25 ($33.75) $45 x 20% = $9 ($36) $45 x 15% = $6.75 ($38.25)

19. Fidelity Select Industrials Portfolio (FCYIX) Large Cap Blend (***) Hi/Lo: $33.23/$2 Capital gain (2015) $1.73 (6%) Capital gain (2014) $3.00 $31.31 (8/18) $30.24 (8/20) $30.39 (12/11) $28.51 (12/18) $29.34 (12/24) $27.30 (1/8) $26.48 (1/16) $33.23 x 40% = $13.29 ($19.94) $33.23 x 30% = $9.97 ($23.26) $33.23 x 25% = $8.31 ($24.92) $33.23 x 20% = $6.65 ($26.58) $33.23 x 15% = $4.99 ($28.24)

20. FIDELITY SELECT ENERGY (FSENX) Hi/Lo: $62.57/$32.63 Equity Energy (****) 2015 Income dividend $0.37 + Capital Gain $.07 = $.42 (1%) Share Price $40.30 (7/28) 11/03 $51.90 (WTI: $78) 12/20 $45.58 (WTI: $58.30) 12/29 $45.41 (WTI: $53.51) 2/13 $47.06 (WTI: $52.78) 11/20 $39.49 (WTI: $41.46) 12/11 $36.07 (WTI: ) 12/18 $34.3 (WTI: $34.73) 12/21 $34.01 (WTI: $35.80) 12/23 $36.19 (WTI: $37.50) 12/28 $35.13 (WTI:$36.66) 1/8 $32.63 (WTI:$33.16) 1/16 $31.15 (WTI:$29.42) $30.00 x 40% = $12 ($42.00) $30.00 x 30% = $9.00 ($39.00) $30.00 x 25% = $7.50 ($37.50) $30.00 x 20% = $6.00 ($36.00) $30.00 x 10% = $3.00 ($33.00) $30.00 x 5% = $1.50 ($28.50) $30.00 x 10% = $3.00 ($27.00) $30.00 x 15% = $4.50 ($25.50)