October 2nd, 2017

Here are several highlights from last week's market activity, as well as developing stories the investment team is following this week. As always, we remain committed to helping you navigate the ever changing investment environment.

The following highlights should not be viewed as a recommendation, nor is this a notification of an impending change in asset allocation. For more information, please contact your advisor with any questions.

Last week
  • In the markets… A new tax plan was proposed and the stock market rallied to new highs. The DJIA finished the week at 22405.09, up +0.25% on the week. The S&P 500 closed at 2519.36, up +0.68% on the week. The NASDAQ finished up +1.07% on the week. U.S. 10-year Treasury ended the week yielding 2.33%. In the energy markets, crude oil settled at $51.67. Year-to-date the S&P 500 is up +12.53%.
  • Markets rose partly helped by small-caps, which rallied on news of tax reform. (Note: Small-cap companies typically have higher tax rates than larger firms)
  • U.S. oil prices entered bull market territory, hitting a two-year high.
  • In other news… Washington Recap: U.S – North Korea verbal spat continued to escalate; travel ban updated; Trump vs. NFL; attempt to replace ACA fails (again); tax reform unveiled; another Cabinet member resigns.
  • Puerto Rico continues recovery efforts following Hurricane Maria. Aid has been slow stirring criticism of the administration.
  • German Chancellor Merkel captured the most votes in Germany's national election. This will be her 4th term.
  • The FBI announced charges against 10 people involved in a college-basketball sneaker scandal.
  • Playboy mogul, Hugh Hefner, passed away at 91.
This week
  • In the markets… Economic data will focus on employment data this week. Friday's report may offer insight into the strength of the economy. Factory orders and wholesale inventories will also be released.
  • Several Fed Presidents will be making the rounds on the speaking circuit. Fed Chair Yellen will also speak in St. Louis.
  • Markets are closed all week in China for national holidays.
  • In other news… Tragedy struck Las Vegas Sunday evening as a gunman open fired on a concert crowd. This is being called the deadliest mass shooting in modern U.S. history.
  • The Supreme Court will begin listening to cases ranging from religious liberty to digital privacy.
  • The awarding of Nobel prizes begins with the prize for medicine going to 3 Americans.
  • Pundits will focus on Spain and the Catalonian referendum, which passed on Sunday.
  • Investment Term of the Week: Small Cap - Small cap is a term used to classify companies with a relatively small market capitalization. A company's market capitalization is the market value of its outstanding shares. The definition of small cap can vary among brokerages, but it is generally a company with a market capitalization of between $300 million and $2 billion.
Thought of the week

A much-anticipated tax plan was unveiled by the administration this past week. And while investors began celebrating (perhaps prematurely) by pushing markets to new highs, many questions still loom. A preliminary analysis of the proposed framework conducted by the Urban Institute and Brookings Institution's Tax Policy Center found that Americans among the top 1% earners would see the bulk of the plan's benefits, while lower-and middle-class Americans – even most upper-class people – would see few benefits. While this may be true, the odds of THIS plan being passed in its proposed form is remote.

So how does the proposed plan compare to the current tax framework. Below we have shared a comparison of key areas that are subject to reform and may be most impactful.

If you have any questions, please do not hesitate to call your advisor. Until we speak again, have a wonderful week!

Disclosures: These highlights should not be viewed as a recommendation, nor is this a notification of an impending change in asset allocation. For more information, please contact your advisor with any questions.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory and financial planning services offered through McGee Wealth Management, Inc. McGee Wealth Management, Inc. is not a registered broker/dealer and is independent of Raymond James financial Services.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of McGee Wealth Management and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. . Investing involves risk and you may incur a profit or loss regardless of strategy selected. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as "The Dow" is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein.

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