Industrial Production

Recent data on U.S. industrial production indicates a return to growth, growing 0.3% in September, as opposed to August, during which time industrial production declined by almost 1%. U.S. corporate earnings are, by and large, at or better than expected levels, helping to fuel the markets as well as expectations for hiring and cap-ex spending.


U.S.
& World Equity Indexes; 8/31/17; YTD Return
S&P
500; 2,519; 12.50%
Dow
Jones Industrials; 22,405; 13.40%
NASDAQ
Composite; 6,495; 20.70%
Shanghai
Composite (China); 3,348; 7.90%
S&P
BSE Sensex (India); 32,607; 22.50%
Nikkei
Stock Avg (Japan); 21,805; 14.10%
CAC
40 (France); 5,394; 11.00%
DAX
(Germany); 13,013; 13.30%
FTSE
100 (U.K.); 7,526; 5.40%

Selected
Interest Rates; 8/31/17; 7/31/17
15-Year
Mortgage; 3.19%; 3.12%
30-Year
Mortgage; 3.88%; 3.82%
5-Year
Treasury Bond; 2.05%; 1.70%
10-Year
Treasury Bond; 2.42%; 2.12%
30-Year
Treasury Bond; 2.92%; 2.73%

Key
Economic Statistics; Most Recent; Prior Month
National
ProducerPrice Index; 0.40%; 0.20%
Consumer
Price Index; 0.50%; 0.40%
Unemployment
Rate; 4.20%; 4.40%
ISM
Manufacturing Index; 60.80; 58.80
ISM
Services Index; 59.80; 55.30
Change
in Non-Farm Payroll Emp.; -33,000; 156,000
New
York State
Consumer
Price Index - NY, NJ, CT; 0.50%; 0.20%
Unemployment
Rate; 4.90%; 4.80%
NYS
Index of Coincident Indicators; 3.10%; 3.10%

GDP

The equity markets continue to advance on the prospect of stronger economic activity, moderate inflation, the potential of tax cuts, and stronger consumer sentiment. The second quarter GDP estimate was revised up to 3.1%, besting the first quarter by more than 1%. The Federal Reserve is data-driven in its plan to normalize shortterm interest rates and reduce the size of its balance sheet over the next five years.


Forté
Capital's Proprietary Bullish Neutral Bearish
Market
Risk Barometer 10 9 8 7 6 5 4 3 2 1
Market
Valuation
Monetary
Environment
Investor
Psychology
Internal
Market Technicals
Overall
Short-Term Outlook; 4.28
Overall
Long-Term Outlook; 3.99; As of 9/30/17
4
3
4
5
MostPrior
Key Economic

Equity
Market Statistics; 8/31/17; 7/31/17
Dow
Jones Industrials
Dividend
Yield; 2.37%; 2.38%
Price/Earnings
(12 Mth Trailing); 19.96; 19.64
Price/Earnings
(Projected); 18.48; 18.19
S&P
500 Index; 8/31/17; 7/31/17
Dividend
Yield; 1.98%; 2.01%
Price/Earnings
(12 Mth Trailing); 23.30; 23.56
Price/Earnings
(Projected); 17.89; 18.06

The information herein was obtained from various sources believed to be accurate; however, Forté Capital does not guarantee its accuracy or completeness. This report was prepared for general information purposes only. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities, options, or futures contracts. Forté Capital’s Proprietary Market Risk Barometer is a summary of 30 indicators and is copyrighted by Forté Capital LLC. For further information, visit www.fortecaptial.com, send a message to [email protected], or call 866-586-8100 and ask for David W. Henion, CPA, or Larry H. Rabinowitz, CPA/PFS.