1. WHY ARE 2011 PENNIES WORTH MORE THAN 2010 PENNIES?
WHILE YOU ARE WAITING
WHY ARE 2011 PENNIES WORTH MORE THAN 2010 PENNIES?
BECAUSE 2011 IS MORE THAN 2010!

2. PUNCTUATION MATTERS

3. BIGFOOT INVESTMENTS - OPEN FORUM
Jul 27, 2017
WELCOME!

5. AGENDA WELCOME! ADMIN NOTES QUOTE OF THE DAY SWAPS AND SPREADS
OPTIMISM GAUGE
DIAGNOSTICS GAGE
FED TRACKER
SUM AND SUBSTANCE
WEEKLY INTELLIGENCE
HIGH IMPACT - RISK
GLOBAL PERSPECTIVE
DAVID’S CORNER
ADVISOR INPUT
QUESTIONS/COMMENTS

6. THANK YOU! “NOTES” IF YOU USE ANY OF OUR SLIDES, PLEASE REMEMBER TO
HAVE THEM APPROVED BY YOUR COMPLIANCE DEPARTMENT
WE’LL KEEP EVERYONE ON MUTE SO WE DON’T GET FEEDBACK
PLEASE SEND US A QUESTION – WE’LL GET TO IT ASAP
WE WILL TAKE YOU OFF MUTE IF YOU RAISE YOUR “HAND”
THANK YOU!

7. BigFoot Investments is now on Twitter, LinkedIn!

8. Don’t Forget To Join Our “Group”
BigFoot On LinkedIn!
Don’t Forget To Join Our “Group”

9. Screening/Scoring for Aug 2017
ACTION
POSTING DATES
Stock Screen
7/28/2017 (Mid-Day)
Stock Scoring
Normal – Friday 7/28/2017
Portfolio Note
British American Tobacco (BTI) has purchased RAI:
$29.44 in cash for each share of RAI
Plus .526 shares of BTI for each share of RAI

10. “QUOTE” OF THE DAY: Ninety percent of the politicians….
…..give the other 10 percent a bad name.
Henry Kissinger

11. Optimism Gauge
As of: 7/27/2017

12. >50-day MA/>100-Day MA
Change
Measuring Our Economy
Last Update: 7/27/2017
Weekly Updates
New Monthly Updates
Indicator
Current Value
Prior/Metric Value
St Louis Fed Financial Stress Index
(Rev)
+1.0
Chicago Fed National Act Index (3 Mon M/A)
+0.06
-0.04 (Rev)
+.50
Unemployment
4.4% (May)
4.3% (Apr)
+2.00
Weekly Jobless Claims (4Wk Mov Av)
244,000
244,000 (Rev)
ECRI Weekly Index (Against 52 Wk Av)
144.8
143.9
Conf Board Leading Indicators (NEW)
127.8
127.0 (Rev)
University of Michigan Sentiment – Final
95.1 (Final – Jun 2017)
97.1 (Final – May 2017)
Monthly Retail Sales – ex Autos (Adjusted)
375,627 (Jun -2017)
376,437 (May-2017) Rev
-.50
NFIB Small Business Sentiment
103.6 (Jun -2017)
104.5 (May -2017)
ISM Manufacturing
57.8 (Expansion Line = 50)
54.9
Economic Capacity Utilization
76.6%
76.7% (Rev)
Stock Market Moving Averages
Weekly Data Points
>50-day MA/>100-Day MA
N/A
S&P Case-Shiller 20 City Comp Index (YoY)
5.7% (May)
5.6% (Apr)

13. Economic Optimism Index
Measuring our Economy 10 20 30 40 50 60 70 80 90
100
Economic Optimism Index
Current:
Prior:
90.74%
READING AS OF: 7/27/2017
Current Reading:
90.74%
Trend: Positive
Prior Reading:
90.57% (Rev)
Bias: Positive

14. BENIGN

15. Week of: Jun 24th, 2017 BigFoot Investments
Market Diagnostics
Week of: Jun 24th, 2017
BigFoot Investments

16. SENTIMENT INDICATORS Week of Jul 24th - 2017
1. AAII Investor Survey
2. TSP Sentiment Survey
3. NAAIM Survey of Manager Sentiment
4. CBOE Volatility Index
INTERNAL INDICATORS
5. S&P D MA and 200D MA AND 2/10 MA
6. NYSE Bullish %
7. S&P 500 Bullish % ($BPSPX)
8. Percent of NYSE stocks above 200DMA
9. Percent of NYSE stocks above 10WMA
or 50DMA ($NYA50R)
10. NYSE 52-Week New Highs and New Lows
11. Percent of S&P500 stocks above 200DMA
12. Percent of S&P500 stocks above 50DMA
ADDED INDICATORS
13. Option Sentiment
14. Option Buyers Sentiment Gauge (OBSG)
15. Consumer Sentiment Index
16. Nasdaq Sentiment Index
17. Rydex Nova/Ursa Sentiment Indicator

17. Week of Jul 24th, 2017
29.41%
Prior: %

18. ONLY ONE SPEAKS Labor market continued to strengthen
VOTING MEMBER
MEMBER
DISTRICT
TOPIC
LINK TO SOURCE
Yellen
Chair
FOMC Statement
Labor market continued to strengthen
Economic activity rising moderately
Job gains solid
Household spending and business fixed investment continue to expand
Overall inflation running below 2% annualized and expected to remain somewhat below 2% in the near term
But should stabilize near 2% objective in medium term
Near-term risks to economic outlook appear roughly balanced but Committee monitoring inflation closely
Committee expects economic conditions will evolve in such a manner that will warrant gradual increases in FDFD
For the time being, Committee will maintain existing policy of reinvesting principal payments from Agency debt and rolling over maturing Treasury securities
But expects to begin implementing its balance sheet normalization relatively soon

19. DWINDLING Now: 43.7% Previous: 48.4%
Source: CME; Federal Reserve

20. Credit Anticipates-Equity Confirms
Swaps and Spreads
Rate
Prior
Current
Status*
Libor/OIS
0.14
0.16
Euribor/Eonia
-0.028
-0.033
Markit CDX NA - IG Spread
57.45
56.30
Markit CDX NA- HY Index
107.55
107.67
DTCC Repo - MBS
1.106
1.143
DTCC Repo – Treasury
1.071
1.101
High Yield
3.69
3.55
Fed Reserve Currency Swaps-Short
55 (ECB)
0 (BOJ)
40 (ECB)
1 (BOJ)
Fed Reserve Currency Swaps-Long
2-Year Swap Spread
0.228
0.274
TED Spread
0.190
0.197
As of: 7/26/2017 COB
*Note: Status = No major impact
Status = Moving Worse
Status = Negative Impact

21. EARNINGS UPDATE
Source: JP Morgan

22. 73% are reporting EPS above 5 year average
Q2 HOLDING STRONG
NOTES:
19% reported as of 7/21/2017
73% are reporting EPS above 5 year average
77% reporting sales above 5 year average
At this point blended earnings growth is 7.2%
Blended sales growth is 5.0%
191 companies reporting this week
Only 7 companies have issued negative guidance
Forward P/E is 17.8 (5-year average 15.4/10-year 14.0)
For Q3 analysts projecting earnings growth 6.45% and revenue growth of 5.0%
For Q4 2017, analysts are projecting earnings growth of 11.7% and revenue
growth of 5.0%
The bottom up target price for the NTM 7.7% ( )
Source: FactSet

23. PORTFOLIO CONSTRUCTION - AQR
Source: AQR

24. SUM
SUBSTANCE

25. WEEKLY INTELLIGENCE Leading Indicators Manufacturing Services Housing
Growth Outlook
Trade

26. WEEKLY MACRO DATA
STILL GOOD

27. CONTINUED GROWTH THROUGH 2017
Source: Conference Board

28. FURTHER ACCELERATION IN BUSINESS ACTIVITY GROWTH ACROSS THE U.S.
Source: Markit

29. TREND HOLDING FOR NOW
Source: Census Bureau

30. All cities reported increases (nsa)
THE BEAT GOES ON
All cities reported increases (nsa)

31. GOOD NUMBERS UP 0.8% m/m Up 9.1% y/y Aver: 5.1
Median Sales Price: $310,800
Sales Inventory: 5.4 months
Aver: 5.1

32. UPWARD MOVEMENT
LITTLE INFLATION
NO RECESSION
Source:

33. NEAR AND FAR?????
Source: Cleveland Fed

34. MUCH BETTER…BUT SLOWER AT THE CORE AND SLOW CAPEX
Source: Census Bureau

35. HOLD YOUR BREATH
2.8%
Source: New York Fed; Atlanta Fed; Goldman Sachs

36. SOME IMBALANCES EVIDENT

37. INTELLIGENCE RISK FACTORS Fed Market Factors Asset Credit
For Better or Worse?

38. SANS THE “FOOD” INTERESTING TAKE
Source: Danske Bank Research

39. HOUSEHOLDS AND INSTITUTIONS NOT “PLAYING”

40. ASSETS OUTSTRIP INCOME – CAUTIOUS SITUATION

41. MANUFACTURING ISSUES
Source: WSJ

42. LENDING DECLINING DESPITE EASIER CREDIT?
Source: Federal Reserve SLOS

43. DEBT TO LIVE OR DIE BY
Source: Moody’s Investors’ Service

44. BUT….SOME CHANGES IN THE WIND?????

45. TOO MUCH PEACE?
Source: Bloomberg

46. OVERALL: DATA POINTS STATUS Comments Manufacturing Services Housing
Holding
Services
Same
Housing
Remains strong
Growth
Real or perceived?
Durable Goods
Weaker
Trade
Holding in U.S. favor due to weak dollar
Sentiment
Strenghtening

47. Eurozone Japan CRITERIA SCORE Deficient 0-1 Poor 2-4 Satisfactory 5-7
Good
8-9
Excellent 10

48. THOUGHTS FOR THE FUTURE

49. ECB SHOULD BE IN NO RUSH TO TAPER POLICY
8.0
EUROZONE’S RECENT GROWTH SPURT LOST MOMENTUM FOR A SECOND SUCCESSIVE MONTH, BUT STILL REMAINED IMPRESSIVE.
ECB SHOULD BE IN NO RUSH TO TAPER POLICY
Composite: 55.8
Services: 55.4
Source: Markit

50. STAGNATION IN EXPORT ORDERS
7.5
SLOWDOWN WAS DRIVEN BY
STAGNATION IN EXPORT ORDERS
Source: Markit

51. A PHILLIPS CURVE GONE BAD – DRAGHI BLINKS
Source:

52. 0.225
U.S. Macro
0.075
Last
New

53. DAVID’S CORNER

54. ADVISOR INPUTS

55. QUESTIONS & COMMENTS
THANKS FOR JOINING US!

56. IMPORTANT DISCLOSURE INFORMATION
Content is intended for investment professional use/review only. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BigFoot Investments.com), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for any investment professional’s clients portfolio or individual situation, or prove successful. The investment professional retains all decision making authority as to whether or not to follow and/or implement any of the presentation content. BigFoot has absolutely no responsibly for any suitability determination pertaining to any of the investment professional’s clients, such obligation being exclusively the initial and ongoing responsibility of the investment professional. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from BigFoot Investments.com. BigFoot Investments.com. is neither a law firm nor a certified public accounting firm and no portion of the content should be construed as legal or accounting advice. Investment Professional acknowledges that to the extent required to do so, it is his/her/its exclusively responsibility to advise his/her/its employer/broker-dealer of its BigFoot subscription. BigFoot Investments.com is a service of Lee Johnson Capital Management, an SEC registered investment adviser located in Fort Worth, Texas. A copy of the Lee Johnson Capital Management LLC’ current written disclosure statement discussing our advisory services and fees is available for review upon request.
No Sharing of Content: You acknowledge that the presentation content is for investment professional use only. You warrant and represent not to share any portion of the presentation content with any non-subscriber, including but not limited to your clients or prospects

57. WHAT WE WOULD BUY AT THIS LEVEL
REASON
STRATEGY THOUGHTS