1. Traverse City Chamber of Commerce
This presentation has been provided to you for use in a private and confidential meeting to discuss a potential or existing investment advisory relationship. This presentation is not an advertisement and is not intended for public use or distribution beyond our private meeting.
Traverse City Chamber of Commerce
A Presentation for
2018 Outlook
Presented By:
Mitch Stapley, CFA, Chief Investment Officer
For Institutional Investors Only

2. 79,646 Votes
Did not update
Source: Strategas 1

3. Latest Unemployment Reports
Sept. 2017
Sept. 2016
Aug. 2009
20 Year Low
State of Michigan
4.3%
5.0%
14.6%
3.2%
Kent County
2.7%
2.5%
11.9%
2.1%
Barry County
3.8%
3.5%
10.9%
2.2%
Ottawa County
3.4%
12.6%
1.8%
Grand Traverse County
3.7%
11.1%
U.S. National Official Rate
4.2%
4.9%
9.8%
3.6%
U.S. U-6 Rate*
8.4%
9.7%
16.7%
8.0%
*U-6 for Michigan = 9.5% for
Source: Michigan Dept. of Labor (Note: Data is NOT seasonally adjusted)

4. ISM-West Michigan Future Business Outlook
Source: ISM – West Michigan

5. Michigan Comeback – Tax Reform’s Impact
All Industries
U.S.
2.7%
2.0%
Michigan
0.0%
1.9%
Great Lakes*
1.3%
1.4%
Illinois
1.8%
1.0%
*Illinois, Indiana, Ohio, Michigan, Wisconsin
Source: Bureau of Economic Analysis 4

6. Michigan Comeback - Manufacturing
U.S.
4.4%
0.9%
Michigan
0.8%
2.1%
Great Lakes*
2.4%
Illinois
2.7%
-0.4%
*Illinois, Indiana, Ohio, Michigan, Wisconsin
Source: Bureau of Economic Analysis 5

7. GDP Growth – Still Below Trend
3.1% Long Term Average
Source: Bloomberg

8. Trump Tax\Regulatory Agenda
Tailwinds For Growth
Corporate Tax Reform
Financial Deregulation
Lower Tax Rate
Fed Stress Test
Capital Expenditures
CFPB Reform
Repatriation/Territorial
SIFI Designation
Small Business Tax Credit
Infrastructure
Individual income Tax Cut
Energy Pipelines
Lower Income Tax Rates
LNG Terminals
Public/Private Partnerships
Source: Strategas Research Partners 7

9. How Experienced is the New Administration?
Cumulative
Gov’t/Military
Business (C-Suite)
Kennedy 96 77 19
Nixon 95 67 28
Carter 79 58 21
Reagan 51 45
HW Bush
132 53
Clinton
123
101 22
Bush
152 80 72
Obama
122
117 5
Trump
138 55 83
Did not update
*President, VP, Chief of Staff, AG, Secretaries of State, Defense, Treasury, Commerce
Source: Bridgewater

10. Regulation Hampering Growth
Did not update
Source: NFIB as of July 2016

11. *“Significant” Proposed Rules
Regulatory Relief Coming?
Trump’s First Fiscal Year: Proposed Rules Compared to Predecessors
(January 20 – September 30)
Proposed Rules
*“Significant” Proposed Rules
Trump
2017
1241 65
Obama
2016
1737
290
2009
1413
216
Bush
2008
1707
276
2001
1757
129
Clinton
2000
1976
198
1997
2134
169
*Impact of $100 million or more
Source: Competitive Enterprise Institute 10

12. Washington Could Help Here
Source: Strategasrp.com

13. Tax Cuts Economic Impact
Y|Y Pct Change In Real Annual GDP
(Measuring From 3Q – 2Q, BEA)
Pre-Tax
Cut
Post -Tax
Cut
Source: Strategasrp.com

14. 2017 YTD Index Total Returns
complete
Source: Bloomberg as of 11/7/17

15. Medicare 25 Year Forecast of Costs
$98.1b
In 1966, it was estimated that Medicare would cost $8.8 billion in 1990
$32.3b
$8.8b
Source: Strategas Research

16. General Disclosures
ClearArc Capital, Inc., formerly known as Fifth Third Asset Management, Inc., is an investment adviser registered under the Investment Advisers Act of 1940 and a wholly owned subsidiary of Fifth Third Bank. Registration as an investment adviser does not imply any level of skill or training. The information is current as of the date of this presentation and is subject to change at any time, based on market and other conditions. Although taken from reliable sources, ClearArc Capital cannot guarantee the accuracy of information received from third parties. There is no guarantee that these objectives will be achieved. This presentation is a general communication educational in nature. This presentation is for informational purposes only and is not designed to be a recommendation of any specific investment product, strategy, plan design or for any other purpose. By providing this presentation, none of ClearArc Capital or its employees has the responsibility or authority to provide or has provided impartial investment advice. This presentation does not suggest taking or refraining from any course of action. In addition, this presentation should not be viewed as an investment recommendation because it is provided as part of the general marketing and advertising activities of ClearArc Capital. 15