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
Producer

 Price 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
Most

 Prior
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.