Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

August 22, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – August 2022

The Citigroup Economic Surprise Index

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median).

• A positive reading suggests the economy is performing above the consensus expectations, while negative readings are indicative of an economy performing below expectations.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

The Weekly Economic Index

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line) by as much as nearly four months time.

Atlanta Fed GDP NowCast

• The Federal Reserve Bank of Atlanta publishes the GDPNow forecasting model as a running estimate of Real GDP based on available economic data for the current measured quarter. The Atlanta Fed GDPNowmodel mimics the methods used by the Bureau of Economic Analysis (BEA) to estimate real GDP growth. It is constructed by aggregating statistical model forecasts of 13 subcomponents that comprise GDP. There are no subjective adjustments – the estimates are based solely on the mathematical results of the model.

IMS Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50-question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs. Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors. 

Core CPI vs Shelter

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy. The Shelter Component (blue line & columns) of CPI is a measure of housing (rent of primary residence & owners equivalent rent), housing at school, and lodging. Shelter is considered to be “sticky” inflation and the largest component of CPI.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connecion with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

July 19, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – July 2022

Economic Activity vs. Expectations

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median). A positive reading suggests actual results are better than consensus had expected and is generally a positive catalyst for risk assets.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

US Economic Activity Indicator

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line).

US Real GDP

• Real Gross Domestic Product (GDP) is a macroeconomic statistic used to measure the value of goods and services produced by an economy in a specified period, adjusted for inflation.

• The Bureau of Economic Analysis (BEA) provides a quarterly report on GDP with headline data statistics representing annualized real GDP growth over the prior period. The report provides important detail on the components of GDP.

IMS Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50- question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs. Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors.

US Treasury Spreads

• The following chart compares the 10-year Treasury note yield (blue line) to the 2-year Treasury note yield (green line). The spread between the two rates (gold line) is a simple measure of steepness. Although the two rates tend to move somewhat together (parallel shifts), longer dated yields tend to lag the magnitude of shorter dated yields.

• When short rates rise, the spread between 10-year and 2-year yields tends to narrow, and when short rates fall, the spread tends to widen. A negative spread (inversion of the yield curve) is usually an indication of economic uncertainty and looming recession.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

June 21, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – June 2022

Economic Activity vs. Expectations

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median). A positive reading suggests actual results are better than consensus had expected and is generally a positive catalyst for risk assets.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

US Economic Activity Indicator

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line).

US Real GDP

• Real Gross Domestic Product (GDP) is a macroeconomic statistic used to measure the value of goods and services produced by an economy in a specified period, adjusted for inflation.

• The Bureau of Economic Analysis (BEA) provides a quarterly report on GDP with headline data statistics representing annualized real GDP growth over the prior period. The report provides important detail on the components of GDP.

ISM Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50- question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors.

Conference Board LEI

• The Conference Board Leading Economic Index (LEI) for the United States is a composite index designed to signal peaks and troughs in a business cycle. The LEI is a composite average of ten leading indicators. It is constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily by smoothing out some of the volatility that occurs in the individual components from month to month.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

May 17, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – May 2022

Economic Activity vs. Expectations

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median). A positive reading suggests actual results are better than consensus had expected and is generally a positive catalyst for risk assets.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

US Economic Activity Indicator

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line).

US Real GDP

• Real Gross Domestic Product (GDP) is a macroeconomic statistic used to measure the value of goods and services produced by an economy in a specified period, adjusted for inflation.

• The Bureau of Economic Analysis (BEA) provides a quarterly report on GDP with headline data statistics representing annualized real GDP growth over the prior period. The report provides important detail on the components of GDP.

IMS Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50- question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs. Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors.

US High Yield Credit Spreads

• Investors in corporate bonds assume not only interest rate risk but also credit risk, the chance that the corporate issuer will default on its debt obligations. Credit ratings published by agencies such as Moody’s, Standard & Poors, and Fitch are meant to capture and categorize credit risk.

• The credit spread is the difference in yield between a corporate bond and a government bond at each point of maturity and reflects the extra compensation investors receive for bearing credit risk. In terms of business cycles, a slowing economy tends to widen credit spreads as companies are more likely to default, and an economy emerging from recession tends to narrow the spread.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

April 18, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – April 2022

Economic Activity vs. Expectations

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median). A positive reading suggests actual results are better than consensus had expected and is generally a positive catalyst for risk assets.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

US Economic Activity Indicator

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line).

US Real GDP

• Real Gross Domestic Product (GDP) is a macroeconomic statistic used to measure the value of goods and services produced by an economy in a specified period, adjusted for inflation. The Bureau of Economic Analysis (BEA) provides a quarterly report on GDP with headline data statistics representing annualized real GDP growth over the prior period. The report provides important detail on the components of GDP.

IMS Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50- question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs. Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors.

US Housing Market

• Most mortgages are pooled, packaged (in a process known as securitization) and sold to investors as mortgage-backed securities (MBS). The price that investors are willing to pay for an MBS bond is a primary determinant of the mortgage rate that originators are able to offer consumers. MBS prices are highly correlated with the prices of US Treasury bonds and reflect the level of interest rates demanded by investors to compensate them for maturity risk, inflation risk and credit risk.

• Low interest rates tend to increase demand for property, driving up prices, while high interest rates generally do the opposite.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

March 18, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – March 2022

Economic Activity vs. Expectations

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median). A positive reading suggests actual results are better than consensus had expected and is generally a positive catalyst for risk assets.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

US Economic Activity Indicator

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line).

US Real GDP

• Real Gross Domestic Product (GDP) is a macroeconomic statistic used to measure the value of goods and services produced by an economy in a specified period, adjusted for inflation. The Bureau of Economic Analysis (BEA) provides a quarterly report on GDP with headline data statistics representing annualized real GDP growth over the prior period. The report provides important detail on the components of GDP.

IMS Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50- question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs. Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors.

PCE – Goods & Services

• The Bureau of Economic Analysis (BEA) reports the total value of personal consumption expenditures (PCE) collectively every month. The PCEs are broken down by goods (blue line) and services (gold line), with goods split between non-durable goods that have a life expectancy that is less than three years and durable goods that are pricier items that last longer than three years.

• The BEA uses the current dollar value of PCEs to calculate the PCE Price Index that shows the price inflation that occurs from one period to the next. The PCE Price Index is the preferred measure of inflation used by the Federal Reserve in setting monetary policy.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

February 16, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – February 2022

Economic Activity vs. Expectations

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median). A positive reading suggests actual results are better than consensus had expected and is generally a positive catalyst for risk assets.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

US Economic Activity Indicator

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line).

US Real GDP

• Real Gross Domestic Product (GDP) is a macroeconomic statistic used to measure the value of goods and services produced by an economy in a specified period, adjusted for inflation. The Bureau of Economic Analysis (BEA) provides a quarterly report on GDP with headline data statistics representing annualized real GDP growth over the prior period. The report provides important detail on the components of GDP.

IMS Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50- question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs. Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors.

Market Breakeven Inflation Rate

• The Breakeven Inflation Rate is a market-based measure of expected inflation. It is the difference between the yield of a nominal bond and an inflation-linked bond of the same maturity. It is called the breakeven rate of inflation because you would receive the same total return onTIPS as you woulda nominal Treasury if CPI inflation averages that level over the term to maturity. If you believe inflation will be higher than the Breakeven Rate, then you would prefer to own TIPS, and vice versa.

• The Breakeven rate is viewed as a more reliable measure of inflation expectations than those measured by surveys because investors presumably have a greater interest in pricing inflation correctly. The orange line depicts what investors expect inflation to average over the coming 5 years while the blue line represents investors expectation for the annualized rate of inflation over the coming 10 years.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Monthly Chart Pack – Favorite Fifteen

Views from the Investment Policy Committee

January 18, 2022

Purpose

• The Monthly Chart Pack – Favorite Fifteen, is a brief collection of charts and data sets that are viewed regularly by many investors, it is NOT a set of recommendations

• This selection of 15 slides is a small subset of the graphs and data points that are viewed by the Investment Policy Committee each week in assessing the status of the business cycle and the health of financial markets

• Our study of the economic environment and market conditions inform our view for tactical positioning and may influence the security selection process

• We hope that you enjoy the Monthly Chart Pack – Favorite Fifteen, and recognize that the views and opinions expressed are capturing a moment in time and are subject to change without notice

Macro TIP Chart

Tactical Investment Positioning – January 2022

Economic Activity vs. Expectations

• The Citigroup Economic Surprise Indices are objective and quantitative measures of economic news. They are defined as weighted historical standard deviations of data surprises (actual vs. Bloomberg median). A positive reading suggests actual results are better than consensus had expected and is generally a positive catalyst for risk assets.

Global PMI Surveys

• The Purchasing Managers’ Index Series are monthly economic surveys that provide an advance signal of what is happening in the real economy. They track activity variables such as output, new orders, supply times, employment and prices across key sectors.

• The Series cover 30 countries and 86% of global GDP. The PMI is a diffusion index with values above 50 signaling expansion and below 50 indicating contraction. The further from 50 the faster the rate of change indicated.

• The Composite (black line) accommodates the activities within the Manufacturing (blue line) and Services (orange line) sectors.

US Economic Activity Indicator

• The Weekly Economic Index (green line) is a set of ten high frequency indicators of real economic activity, scaled to align with the four-quarter real GDP growth rate (gold line). It represents the common component of series covering consumer behavior, the labor market, and production. The NY Federal Reserve Bank designed the WEI to be a real-time indicator of activity in the US economy.

• The WEI (green line) is instructive for investors in assessing the status of the economic cycle as it leads the Commerce Departments reporting of estimated real GDP growth (gold line).

US Real GDP

• Real Gross Domestic Product (GDP) is a macroeconomic statistic used to measure the value of goods and services produced by an economy in a specified period, adjusted for inflation. The Bureau of Economic Analysis (BEA) provides a quarterly report on GDP with headline data statistics representing annualized real GDP growth over the prior period. The report provides important detail on the components of GDP.

IMS Monthly Report on Business

• The ISM Report on Business is based on a national survey of purchasing managers tracking changes in the Manufacturing and Services sectors. They have the properties of leading indicators and are convenient summary measures showing the prevailing direction and scope of change. Values above 50 signal expansion and below 50 indicate contraction. The further from 50 the faster the rate of change indicated.

• The manufacturing “new orders” (light blue line) can be a good leading indicator of the manufacturing “output” (dark blue line) in the economy, and the services “business activity” (light orange line) often leads the services “output” (orange line) index.

US Consumer Spending

• The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey, a random sampling of approximately 5,500 retail firms whose sales are weighted and benchmarked to represent the universe of over 3 million retailers in the United States. Monthly data is adjusted to accommodate seasonal variation, holidays and trading-day differences. Sales capture price and volume of goods and services.

• Retail Sales can be quite volatile from month to month (light blue, light orange), so viewing a 3-month moving average (dark blue, dark orange) may provide a better picture of consumer sentiment. Retail Sales are reported in total (orange lines) and backing out Auto (blue lines).

US Consumer Confidence

• Since 1946, The University of Michigan has conducted a minimum of 500 interviews each month from its survey center in Ann Arbor. The 50- question survey stresses the important influence of consumer spending and saving decisions in determining the course of the national economy. The core questions cover three broad areas of consumer sentiment; personal finances, business conditions and buying conditions.

• The Consumer Sentiment Index (blue line) measures how consumers feel about their current situation (green line) and how they view prospects for the general economy over the intermediate to long-term (orange line).

US Employment

• The “Employment Situation Report” is released by the Bureau of Labor Statistics (BLS) on the first Friday of every month. The Household Survey measures labor force status by demographic characteristics. The Establishment Survey measures nonfarm employment, hours, and earnings by industry. These reports cover an estimated 80% of US businesses and offer insights into the status of the labor force.

• Observers focus on the Total Nonfarm Payroll (dark blue), Private Nonfarm Payroll (light blue), and monthly employment gains (bottom).

Consumer Price Index (CPI-U)

• The Consumer Price Index (CPI) measures the changes in prices paid by consumers for goods and services. Released by the Bureau of Labor Statistics each month, the CPI-U is based on prices of food, clothing, shelter, fuels, transportation, medical services, drugs, and other goods and services that people buy for day-to-day living. The Urban Consumer group represents approximately 93% of the US population.

• Core CPI (red line) excludes the more volatile prices of food and energy from the headline CPI (black line). The Federal Reserve sets the Fed Funds Target Rate (blue dashed line) based on it’s “full employment” and “price stability” monetary policy mandate.

US Treasury Yields vs. Inflation

• Investors consider US Treasury Bonds to be free of default risk, leaving interest rate risk as the primary concern. Bonds are subject to interest rate risk, since rising rates will result in falling prices and vice-versa. The longer the maturity the greater the sensitivity to changes in rates.

• Interest rates respond to inflation – a bonds worst enemy. When prices in an economy rise, or are expected to rise, investors will demand a higher yield-to-maturity to compensate them for the erosion of purchasing power. This is of particular concern for longer dated bonds.

Investment Grade Credit Spreads

• A credit spread is the difference in yield between a US Treasury Bond (risk-free) and another bond of similar maturity. Corporate bonds, even for the most stable and highly rated companies, are considered to be riskier investments for which the investor demands compensation.

• Fluctuations in credit spreads are often a reflection of changing expectations around economic conditions and issuer default risk. Credit spreads can be a good barometer of economic health – widening when growth slows and narrowing when growth improves.

S&P 500 Inflection Points

• The ability for companies to navigate their way through the ebb and flow of business cycles is a key determinant in the stream of profits available to investors. Over the long-term, stocks love profits and will follow their path.

• The price that investors are willing to pay to participate in the long-term stream of profits may be determined by an objective valuation process. But in the short-term, the price of stocks is frequently subject to the shifting investor sentiment between fear and greed.

S&P 500 Earnings

• Stocks love profits. The long-term path of a stock market follows the investor expectations for higher earnings. Periods of earnings uncertainty are often met with market declines. But, as the outlook for profits improves, markets tend to look past the trough and toward the renewed earnings trajectory.

S&P 500 Valuation

• Methods for valuing the stock market are plentiful, from using a simple Price/Earnings Ratio to employing a more complex model that contemplates future cash flows and discount rates. A wide variety of methods are used by investors everyday.

• The P/E ratio is used by investors to determine the relative value of a market against its own historical record or to compare markets over time.

Sector Dashboard

• The Stock Market is a market of stocks that can be compartmentalized into sectors. Constituents of a sector often share a similar sensitivity to the ebbs and flows of the business cycle. Each sector has its own identity and characteristics that can be examined by investors.

Manheim Used Vehicle Value Index

• The monthly Manheim Used Vehicle Value Index began in 1995 and is recognized as the premier indicator of pricing trends in the used vehicle market. It is based on all completed sales transactions at Manheim’s US auctions that fall into the 20 market classes according to the J.D. Power and Associates classification scheme. This results in a usable sample size of over 5 million transactions annually.

Disclosure

This document is for informational purposes only. It contains views of the Investment Policy Committee (IPC) of Vigilant Wealth Management (Firm) and does not serve as advice or recommendation. The views and opinions expressed in this document are subject to change at any moment and without notice.

Any performance data quoted or expressed in graphs and commentary represent past performance and is not a guarantee of future results. Investing involves risk and you could lose all or a portion of the value of your investment portfolio. The value of your investment portfolio and your investment return will fluctuate based on changes in the value of your portfolio investments. In the future, your investment portfolio may be worth more or less. This document does not represent the investments that may or may not be held in your investment portfolio.

Please contact Vigilant Wealth Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.

Vigilant Wealth Management completes and updates regulatory filings with the SEC as required. Please refer to the Firm’s ADV Part 1, Part 2A and Part 2B filings for important information about how the Firm manages investment portfolios, what fees may apply to investment portfolios, important Firm disclosures, and information about employees that may participate in the investment process of the Firm. These filings may be viewed at www.sec.gov and are available upon request.

Certain information ©2020 MSCI ESG Research LLC. Reproduced by permission; no further distribution. This report contains certain information (the “Information”‘) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.