1. CAN YOU GET “SKINNY” IN THE SUBWAY?
WHILE YOU ARE WAITING
CAN YOU GET “SKINNY” IN THE SUBWAY?
NOT EXACTLY BUT CLOSE

2. EINSTEIN’S DESK ON THE DAY HE DIED

3. BIGFOOT INVESTMENTS - OPEN FORUM
Jun 1, 2017
WELCOME!
Volume #293

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

5. 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”
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6. BigFoot Investments is now on Twitter, LinkedIn!

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

8. “QUOTE” OF THE DAY: A jackass can kick down a barn….
…But it takes a good carpenter to build one
Sam Rayburn

9. A THOUGHT FOR THE DAY:
Eight years into the recovery, it is important to recognize that financial conditions can change rapidly and bear special vigilance….
…Nonetheless, risks to the U.S. financial system do not appear to be flashing red in the way they did in the run-up to previous downturns.
Lael Brainard (FOMC)

10. Optimism Gauge
As of: 6/1/2017

11. >50-day MA/>100-Day MA
Change
Measuring Our Economy
Last Update: 6/1/2017
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)
+0.23
(Rev)
+.50
Unemployment
4.4% (Apr)
4.5% (Mar)
+2.00
Weekly Jobless Claims (4Wk Mov Av)
238,000
235,500 (Rev)
-.50
ECRI Weekly Index (Against 52 Wk Av)
144.1
144.5 (Rev)
Conf Board Leading Indicators (NEW)
126.9
126.5
University of Michigan Sentiment – Final
97.1 (Final – Apr 2017)
97.0 (Final – Apr 2017)
Monthly Retail Sales – ex Autos (Adjusted)
377,805 (Apr -2017)
376,679 (Mar-2017) Rev
NFIB Small Business Sentiment
104.5 (Apr -2017)
104.7 (Mar -2017)
ISM Manufacturing
54.9 (Expansion Line = 50)
54.8
Economic Capacity Utilization
76.7%
76.1% (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)
5.9% (Mar)
5.9% (Feb) (Rev)

12. Economic Optimism Index
Measuring our Economy 10 20 30 40 50 60 70 80 90
100
Economic Optimism Index
Current:
Prior:
92.41%
READING AS OF: 6/1/2017
Current Reading:
92.41%
Trend: Positive
Prior Reading:
90.14 (Rev)
Bias: Positive

13. Week of: May 29th, 2017 BigFoot Investments
Market Diagnostics
Week of: May 29th, 2017
BigFoot Investments

14. SENTIMENT INDICATORS Week of May 29th - 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

15. Week of May 29th, 2017
23.52%
Prior: 29.41%

16. READY, SET …..HIKE! Williams San Francisco
VOTING MEMBER
MEMBER
DISTRICT
TOPIC
LINK TO SOURCE
Williams
San Francisco
Still believes a total of three rate hikes by the central bank this year
Must improve productivity to grow
Brainard
BOG
“Tentative progress we had seen on inflation may be slowing…may lead me to reassess the expected path of the federal funds rate in the future, although it is premature to make that call today.”
Kaplan
Dallas
two more interest-rate increases this year, acknowledges recent declines in U.S. core inflation.
Beige Book
Powell
U.S. economy was "healthy" and that the central bank should continue to edge toward a more normal footing after nearly a decade of crisis-era stimulus.

17. Consumer spending softened in many districts
MORE OF THE SAME
Most Districts reported that their economies continued to expand at a modest or moderate
Auto sales down
Consumer spending softened in many districts
Moderate growth in manufacturing
Residential and non-residential construction grew a moderate pace
Lending tended to mirror the general activity of the economy
Most Districts reported that firms expressed near-term positive outlooks
But optimism waned somewhat in a few Districts
Labor markets continue to tighten
Modest increases in prices
Low inventories for homes pushing prices
Source: Beige Book

18. WELL, TAKE A GUESS AFTER JUNE
44.3%
Source: CME; Federal Reserve

19. Credit Anticipates-Equity Confirms
Swaps and Spreads
Rate
Prior
Current
Status*
Libor/OIS
0.27
0.29
Euribor/Eonia
-0.036
-0.032
DTCC Repo - Agency
Discontinued
DTCC Repo - MBS
0.841
0.998
DTCC Repo – Treasury
0.991
High Yield
3.71
3.74
Fed Reserve Currency Swaps-Short
35 (ECB)
0 (BOJ)
40 (ECB)
1 (BOJ)
Fed Reserve Currency Swaps-Long
2-Year Swap Spread
0.268
0.226
TED Spread
0.271
0.222
As of: 5/31/2017 COB
*Note: Status = No major impact
Status = Negative Impact
Status = Moving Worse

20. JUNE HAS ARRIVED

21. June 2017 Stock Picks IN: GS OUT: CELG TOP 25 STOCKS June-17 RANK
TICKER
NAME
SECTOR
INDUSTRY 1
ULTA
Ulta Beauty Inc
09 - Services
Retail (Specialty Non-Apparel) 2
GOOGL
Alphabet Inc
10 - Technology
Computer Services 3 FB
Facebook Inc 4
AMZN
Amazon.com, Inc.
Retail (Catalog & Mail Order) 5 EW
Edwards Lifesciences Corp
08 - Health Care
Medical Equipment & Supplies 6
BABA
Alibaba Group Holding Ltd 7
AAPL
Apple Inc.
Communications Equipment 8 V
Visa Inc
Business Services 9 GD
General Dynamics Corporation
02 - Capital Goods
Aerospace and Defense 10
DHI
D.R. Horton, Inc.
Construction Services 11
USCR
US Concrete Inc
Construction - Raw Materials 12
FDX
FedEx Corporation
11 - Transportation
Air Courier 13
DAL
Delta Air Lines, Inc.
Airline 14 HD
Home Depot Inc
Retail (Home Improvement) 15
COST
Costco Wholesale Corporation 16
WLK
Westlake Chemical Corporation
01 - Basic Materials
Chemicals - Plastics and Rubbers 17 GS
Goldman Sachs Group Inc
07 - Financial
Investment Services 18
DIS
Walt Disney Co
Broadcasting & Cable TV 19
AGN
Allergan plc
Biotechnology & Drugs 20 C
Citigroup Inc
Regional Banks 21
XOM
Exxon Mobil Corporation
06 - Energy
Oil & Gas Operations 22
DOW
Dow Chemical Co 23
CBS
CBS Corporation 24
BAC
Bank of America Corp 25
ARNC
Arconic Inc
Metal Mining
As of May 30th, Subject to change.

22. Investment Style of the Portfolio
TOP 25 STOCKS
June-17
ULTIMATE SCREEN-BASED LIST
RANK
TICKER
NAME
Popular
Value
Growth
Quality
Sentiment 1
ULTA
Ulta Beauty Inc
#N/A
YES 2
GOOGL
Alphabet Inc 3 FB
Facebook Inc 4
AMZN
Amazon.com, Inc. 5 EW
Edwards Lifesciences Corp 6
BABA
Alibaba Group Holding Ltd 7
AAPL
Apple Inc. 8 V
Visa Inc 9 GD
General Dynamics Corporation 10
DHI
D.R. Horton, Inc. 11
USCR
US Concrete Inc 12
FDX
FedEx Corporation 13
DAL
Delta Air Lines, Inc. 14 HD
Home Depot Inc 15
COST
Costco Wholesale Corporation 16
WLK
Westlake Chemical Corporation 17 GS
Goldman Sachs Group Inc 18
DIS
Walt Disney Co 19
AGN
Allergan plc 20 C
Citigroup Inc 21
XOM
Exxon Mobil Corporation 22
DOW
Dow Chemical Co 23
CBS
CBS Corporation 24
BAC
Bank of America Corp 25
ARNC
Arconic Inc
As of May 30th, Subject to change.

23. Beta of the Portfolio – June 2017
RANK
TICKER
NAME
SECTOR
INDUSTRY
BETA
Weight
Weighted Beta 1
ULTA
Ulta Beauty Inc
09 - Services
Retail (Specialty Non-Apparel)
0.54
0.04
0.0216 2
GOOGL
Alphabet Inc
10 - Technology
Computer Services
0.95
0.038 3 FB
Facebook Inc
0.67
0.0268 4
AMZN
Amazon.com, Inc.
Retail (Catalog & Mail Order)
1.48
0.0592 5 EW
Edwards Lifesciences Corp
08 - Health Care
Medical Equipment & Supplies
0.66
0.0264 6
BABA
Alibaba Group Holding Ltd
0.76
0.0304 7
AAPL
Apple Inc.
Communications Equipment
1.21
0.0484 8 V
Visa Inc
Business Services
0.97
0.0388 9 GD
General Dynamics Corporation
02 - Capital Goods
Aerospace and Defense
0.73
0.0292 10
DHI
D.R. Horton, Inc.
Construction Services
1.16
0.0464 11
USCR
US Concrete Inc
Construction - Raw Materials
1.14
0.0456 12
FDX
FedEx Corporation
11 - Transportation
Air Courier 13
DAL
Delta Air Lines, Inc.
Airline
0.90
0.0360 14 HD
Home Depot Inc
Retail (Home Improvement)
1.08
0.0432 15
COST
Costco Wholesale Corporation
0.036 16
WLK
Westlake Chemical Corporation
01 - Basic Materials
Chemicals - Plastics and Rubbers
1.68
0.0672 17 GS
Goldman Sachs Group Inc
07 - Financial
Investment Services
1.51
0.0604 18
DIS
Walt Disney Co
Broadcasting & Cable TV
1.19
0.0476 19
AGN
Allergan plc
Biotechnology & Drugs 20 C
Citigroup Inc
Regional Banks
1.62
0.0648 21
XOM
Exxon Mobil Corporation
06 - Energy
Oil & Gas Operations
0.89
0.0356 22
DOW
Dow Chemical Co 23
CBS
CBS Corporation
1.60
0.064 24
BAC
Bank of America Corp
1.35
0.054 25
ARNC
Arconic Inc
Metal Mining
1.00
1.0960
For a Portfolio with 100% invested in Equity – Beta of Portfolio ≈

24. CHANGE IN BETA Jun-17 NEW GS 1.51 May-17 OLD CELG 1.78 AVG. BETA

25. June 2017 Growth Stock PicksGS
As of May 30th, Subject to change.

26. June 2017 Growth Stock Picks
As of May 30th, Subject to change.

27. June 2017 Growth Stock Picks
As of May 30th, Subject to change.

28. June 2017 Growth Stock Picks
As of May 30th, Subject to change.

29. June 2017 Growth Stock Picks
As of May 30th, Subject to change.

30. June 2017 Growth Stock Picks
As of May 30th, Subject to change.

31. GROWTH PORTFOLIO METRICS

32. PLANNING AHEAD

33. Target Allocation “All-In Growth”

35. Adding A Broad Market ETF

37. Adding Fixed Income
Fixed Income: CRUMX and GIOAX

39. Adding Liquid Alts
Liquid Alts: SDRIX – GATEX – QLEIX - JHEQX

41. Portfolio Construction Comparison
3 Year
All-In Growth
Adding ETF
Adding Fixed Income
Adding Liquid Alts
Benchmark
S&P 500
Standard Deviation
12.88
11.78
9.45
8.73
10.41
Mean
19.72
16.08
13.49
13.64
10.47
Sharpe Ratio
1.58
1.04
1.45
Alpha
6.68
4.12
3.83
4.63 -
Beta
1.17
1.10
0.88
0.81
1.00
R-Squared
88.81
94.31
94.71
93.73

43. Dividend Picks 2nd Quarter 2017
As of:
6/1/2017
RANK #
TICKER
COMPANY
Growth Score
Yield Score
Dividend Yield
TOTAL SCORE
Beta
Rf* Rm
CAPM 1
MIC
Macquarie Infrastructure Corp
95.00
6.79
79.08
0.88
0.73
0.7009
0.7044 2
VLO
Valero Energy Corporation
91.00
4.15
74.94
1.38
0.6898 3
RAI
Reynolds American, Inc.
87.00
3.06
74.83
0.39
0.7186 4
BGCP
BGC Partners, Inc.
94.00
6.13
74.58
1.32
0.6915 5
ENB
Enbridge Inc (USA)
5.82
73.44
0.63
0.7116 6
QCOM
QUALCOMM, Inc.
90.00
3.98
73.10
1.27
0.6930 7
LAZ
Lazard Ltd
88.00
3.68
72.88
1.93
0.6738 8
KKR
KKR & Co. L.P.
3.65
72.46
1.64
0.6822 9
CSCO
Cisco Systems, Inc.
3.66
72.36
1.40
0.6892 10
GIS
General Mills, Inc.
3.39
72.18
0.57
0.7134 11
ORI
Old Republic International Cor
89.00
3.89
71.90
1.11
0.6977 12 IP
International Paper Co
3.47
71.15
1.49
0.6866 13
GSK
GlaxoSmithKline plc (ADR)
93.00
4.49
71.13
0.98
0.7014 14
ABBV
AbbVie Inc
3.88
69.78
1.54
0.6851 15
IBM
International Business Machine
86.00
3.95
69.42
0.96
0.7020 16
MSFT
Microsoft Corporation
81.00
2.22
69.06
1.04
0.6997 17 KO
The Coca-Cola Co
3.26
68.86
0.67
0.7105 18
RDS.B
Royal Dutch Shell plc (ADR)
96.00
6.65
68.72
1.15
0.6965 19
INTC
Intel Corporation
85.00
3.01
68.60
1.01
0.7006 20 GM
General Motors Company
4.53
67.60
1.28
0.6927 21
WFC
Wells Fargo & Co
82.00
2.91
67.56
0.94
0.7026 22
JPM
JPMorgan Chase & Co.
78.00
2.38
65.15
1.44
0.6880 23 GE
General Electric Company
3.51
64.60
1.18
0.6956 24
WMT
Wal-Mart Stores Inc
2.61
61.33
0.11
0.7268 25 CS
Credit Suisse Group AG (ADR)
92.00
4.95
58.29 Rf
Current Portfolio Yield:
4.001
0.6976%
Per Month
Treasury Bill Rate - 4 weeks
5/31/2017
CAPM of Portfolio
8.70%
Annualized
Current Portfolio Yield
4.00%
* Growth and Yield Score based on 2Q/2017 Screening
Expected return of the Portfolio
12.70%

44. SUM
SUBSTANCE

45. WEEKLY MACRO DATA
FOCUS ON THE DOT

46. THE BOTTOM LINE
Growth
PMI Data
Sentiment
Output
Inflation
Housing

47. BETTER…Q2 PRELUDE????
Capex, was revised up to an 11.4% annual rate from 9.4%
PCE revised up to a 0.6% annual rate from 0.3%
Government spending revised to a -1.1% annual rate from -1.7%
Inventory investment was revised down to $4.3 billion from $10.3 billion, and subtracted 1.07 percentage points from growth versus points originally
Real final sales to domestic purchasers, which exclude inventories and net exports, were revised up to a 2.1% annual rate from 1.5% previously, indicating that final domestic demand remains stellar, despite softer headline real GDP growth
Corporate profits from current production fell 1.9%, the most in five quarters
Source: BEA

48. GROWTH ON THE HORIZON
Source: Chicago Fed

49. THIS IS NOT GOOD…BUT THEN AGAIN IT’S THE CBO
Source: CBO

50. UNIVERSITY OF MICHIGAN SENTIMENT TICKS UP
97.1 from 97.0
Source: University of Michigan

51. CONSUMERS SOMEWHAT LESS UPBEAT BUT OVERALL REMAIN OPTIMISTIC
Source: Conference Board

52. EIGHT-MONTH LOW IN MAY – BUT STILL IN EXPANSION
Source: Markit; Investing.com

53. UP FRACTIONALLY IN MAY
Source: ISM; dShort

54. DOWN FOR THE FIRST TIME IN FIVE MONTHS (BETTER THAN FORECAST (-1.8%)
Source: Census Bureau

55. INFLATION STILL MEANDERING – INCOME AND CONSUMPTION MOVE UP
Source: BEA

56. HOME PRICES CONTINUED THEIR RISE ACROSS THE COUNTRY

57. NEW HOUSING TAKES A BREATHER
Source: Census Bureau

58. ……AND SO DO EXISTING HOME SALES
Source: NAR

59. FIRST YEAR-OVER-YEAR DECLINE SINCE LAST DECEMBER
“Double whammy: Inventory down 9.0 percent from a year ago and rapid price appreciation that's rising much faster than incomes”
Source: NAR

60. BEST GUESS FOR NOW – BUT BETTER
3.8%
Source: Atlanta Fed; New York Fed

61. INTELLIGENCE
Cycle Volatility
“Risk Factors”

62. EXPECT MORE VOLATILITY BUT DON’T PANIC…YET

63. WATCH THE “HIGH” SIDE

64. DEFAULTS IN THE OIL PATCH

65. SOME THOUGHTS ON RISK
Source: Federal Reserve – Lael Brainard; SIFMA

66. OVERALL: DATA POINTS STATUS Comments Business Cycle Manufacturing
Still expanding but late stage in some areas
Manufacturing
Expanding but showing some declines
Housing
Strong in pricing – Sales fall due to supply issues – overall good
Production
M/M weakness in durable goods output – looking for trend
Growth
GDP better but wait and see for second quarter. Signs good
Inflation
Weak
Sentiment
Some declines in signals but good for now
Employment
Tight market but strong
Still in expansion but faltering

67. THE GLOBAL CHURN Eurozone China CRITERIA SCORE Deficient 0-1 Poor 2-4
Satisfactory
5-7
Good
8-9
Excellent 10

68. PMI DATA INDICATE THAT EUROZONE GROWTH
8.0
PMI DATA INDICATE THAT EUROZONE GROWTH
REMAINED IMPRESSIVELY STRONG IN MAY

69. NOMINAL AND CORE BOTH DOWN
6.0
NOMINAL AND CORE BOTH DOWN
1.4% down from 1.4%
Source: Eurostat

70. 6.0
NOT TOO MUCH TO FRET

71. RENEWED DETERIORATION IN OPERATING CONDITIONS4
RENEWED DETERIORATION IN OPERATING CONDITIONS
Contraction 49.6
China General Manufacturing PMI fell 0.7 points to 49.6 in May, marking its first contraction in 11 months.
“China’s manufacturing sector has come under greater pressure in May and the economy is clearly on a downward trajectory.”

72. 0.250
0.250
U.S. Macro
Last
New

73. DAVID’S CORNER

74. ADVISOR INPUTS

75. QUESTIONS & COMMENTS
THANKS FOR JOINING US!

76. 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

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