Dear Friends and Family,

Government Shutdown:

There were 17 government shutdowns between 1976 and 1996. The average length was 6.4 days, and market/GDP effects were minimal. The longest, in 1996, led to reduced government spending and surpluses thereafter. History suggests the impact of shutdowns is often overstated.

Emerging Markets:

Cornerstone Macro’s recent research suggests the U.S. and Canada are becoming the ‘new emerging markets’ due to improving business climates and energy production. They recommend small manufacturers and large domestic retailers—many already in our model portfolios.

Sincerely,

Katz Family Financial