Small and Mid-Capitalized Companies Outperform Again Last Week

Small and Mid-Cap companies have been the best performing sector of the market this year and last week was no exception. The Russell 2000® Index, last week’s best performer, rose 0.80% followed by the Nasdaq which gained 0.35%.  The S&P 500® Index and the Dow Jones Industrial Average lost 0.25% and 0.59%, respectively.  Small cap stocks continued to perform well; strong earnings reports and upwardly revised guidance supported the momentum provided by the economy.  A survey among economists projected a 3.0% GDP rate for 2018, an improvement over surveys conducted last month (+2.9%) and a year ago (+2.4%).  Also, Japan reported quarterly GDP growth of 1.9% with increases led by consumer and capital spending.

In light trading, the markets sold off on Friday in reaction to concerns that Turkey could become the next Greek tragedy.  The lira declined as much as 20% on Friday, and the superheated economy has exposed the vulnerabilities of some European banks which hold substantial Turkish debt.  Friday’s announcement by President Trump of new additional steel and aluminum tariffs on Turkey added another layer of concern.  Most strategists, though, do not expect a major crisis as the exposure of European banks is much more limited than during the Greek financial crisis

Over 90% of the companies in the S&P have reported quarterly earnings; approximately 84% have exceeded earnings estimates and, amongst companies in the Index, upward revisions for 2018 earnings estimates have increased by 10.8% year-to-date.  Corporate news beyond earnings releases was rather sparse.  Elon Musk tweeted that Tesla is considering a leveraged buyout to become a private company; the Board plans to discuss the matter next week.  On the trade front, President Trump announced plans to add another $16 billion of tariffs on Chinese imports.  Predictably, China reciprocated by announcing a similar amount of tariffs on U.S. goods while notably omitting oil imports from the list.  Unofficially, the two countries may be engaging in informal dialogue which might lead to more formal negotiations.

The markets’ upward bias continues, with the expectation of further gains through the end of the year.  Corporate earnings and strong economic data are the key drivers.  Call options, which enable investors to buy at current prices and potentially exercise if stock prices move higher, have been in high demand.  Month-to-date, all major indices (except the Dow) have gained despite light end-of-summer trading volumes.

Source: Pacific Global Investment Management Company

Chart reflects price changes, not total return.  Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.


Last Week's Headlines: 8/14/2018

1. The number of job openings was little changed at 6.7 million on the last business day of June, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were little changed at 5.7 million and 5.5 million, respectively. Within separations, the quites rate was unch...

Read Story

Canadian dollar climbs to 7-week high on NAFTA optimism, ...

Mexico and the U.S. have agreed to step up talks in hopes of reaching an agreement on major issues by August

Read Story

California's huge energy decision: link its grid to its n...

It's partly a decision about clean energy - with a huge trade off. California is Anerica's undisputed clean-energy leader, a kind of cultural and economic islan, liberal enough to pass...

Read Story

 


 

Brian Amidei is Coachella Valley's only Barron's Magazine Top 1,000 Advisor in 2013 and 2014!

Brian Amidei, along with Partners Joseph Romano and Brett D'Orlando have also been named *2014, 2015, 2016, 2017 Five Star Wealth Managers!

Disclosures:

Awards and recognitions by unaffiliated rating services, companies, and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Fortem is engaged, or continues to be engaged, to provide investment advisory services; nor should they be construed as a current or past endorsement of Fortem or its representatives by any of its clients. Rankings published by magazines and others are generally based on information prepared and/or submitted by the recognized advisor. Awards may not be indicative of one client?s experience or of the Firm?s future performance.  Neither Fortem nor the recognized advisor has paid a fee for inclusion on a list, nor purchased any additional material from the award provider. The criteria for each award is listed below:

Barron's Disclosure:

The Barron's award is is based on the recognized adviser's assets under management, contribution to the firm's revenues and profits, and quality of practice.  Investment performance is not an explicit criteria.  Additional information about this award is available at http://online.barrons.com/report/top-financial-advisors. 

Five Star Professional Disclosure:

The Five Star Wealth Manager award is based on 10 eligibility and evaluation criteria: 1) Credentialed as an investment advisory representative (IAR) or a registered investment advisor; 2) Actively employed as a credentialed professional in the financial services industry for a minimum of five years; 3) Favorable regulatory and complaint history review; 4) Fulfilled their firm review based on internal firm standards; 5) Accepting new clients; 6) One-year client retention rate; 7) Five-year client retention rate; 8) Non-institutionalized discretionary and/or non-discretionary client assets administered; 9) Number of client households served; and 10) Educational and professional designations. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or the magazine. The award methodology does not evaluate the quality of services provided.  Additional information about this award is available at: fivestarprofessional.com/2016FiveStarWealthManagerMethodology.pdf

Fortem Financial 2016. All rights reserved. 

Data Sources:  News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations.  Market Data: Based on reported data in WSJ Market Data Center (indexes); U.S. Treasury (Treasury Yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates).  All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. 

Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice.  The opinions expressed are solely those of the author, and do not represent those of Fortem Financial, LLC or any of its affiliates.  Past performance is no guarantee of future results.  All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.  Forward looking statements are based on current expectations and assumptions, the economy, and future conditions.  As such, forward-looking statements are subject to inherent uncertainty, risks, and changes in circumstance that are difficult to predict.  Actual results may differ materially from the anticipated outcomes.  Carefully consider investment objectives, risk factors and charges and expenses before investing.  Fortem Financial is a registered investment adviser with the SEC.  Advisory services are offered through Fortem Financial.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks.  The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy.  The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange.  The Russell 2000 is a market-cap weighed index composed of 2,000 U.S. small-cap common stocks.  The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide.  Market indices listed are unmanaged and are not available for direct investment.

8/7 August Market Commentary

With the mid-term elections approaching, an ongoing tariff war with China, and an apparent soft patch in Europe, we continue to ask ourselves the question of whether we’re on track for the longest expansion in U.S. History or at the end of the road.

To help answer this question, we look at various economic data points to understand the US economy’s trajectory.  During the month of June, we saw robust employment gains in the US with 213,000 new jobs.  Coupled with the growth in jobs, US wages increased at 2.7% in the last twelve months.  Following employment and wage gains, we’ve observed impressive retail sales, indicating that the US consumers are alive and well.

Consumer confidence also continues to sit near its highs, indicating that the strength in consumption is likely to continue.  Interestingly, consumer confidence and consumption remain strong while the Bureau of Economic Analysis reports that the U.S. savings rate is higher than expected.  We view this a positive for the US economy and its continued expansion.  In some instances, we view an increase in the savings rate as a bearish indicator.  However, in an environment where we see consumer confidence high, wages outpacing inflation, consumption increasing, and an increased savings rate, we believe the increased savings rate indicates that the U.S. consumer is being more financially responsible.  Further, we believe this can help provide a buffer to future economic shocks.

We also continue to see Small Business Optimism near the highest levels it’s been at in the last 20 years.  High levels of business optimism should be good for capital expenditures, which should in turn be good for economic growth, employment, and further wage growth.  Also supporting our view on expected increases in capital expenditures are the rise in shipments of durable goods and the increase in new orders.  Corporate America has amassed significant capital over the last decade, and the deployment of this capital can help support continued expansion in the US economy.

Another positive is that inflation continues to be contained.  One of the Federal Reserve’s key measures of inflation, the Core PCE Index, is up 1.9% year over year.  This is in line with the Federal Reserve’s target, and more importantly to us, it is below the 2.7% wage growth we’ve seen here in the US.  Disposable incomes and consumption should remain stable and even increase moderately as long as wage growth continues to outpace inflation.

And lastly, while the talk of trade war has been significant, the actual policies enacted thus far have had little negative impact on the U.S. and global economy.  Further, there is talk of a compromise between the U.S. and Europe, as well as between the U.S., Canada, and Mexico.  China will take longer, but we ultimately expect these two nations will also find a mutually acceptable compromise.

 


 

Brian Amidei is Coachella Valley's only Barron's Magazine Top 1,000 Advisor in 2013 and 2014!

Brian Amidei, along with Partners Joseph Romano and Brett D'Orlando have also been named *2014, 2015, 2016, 2017 Five Star Wealth Managers!

Disclosures:

Awards and recognitions by unaffiliated rating services, companies, and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Fortem is engaged, or continues to be engaged, to provide investment advisory services; nor should they be construed as a current or past endorsement of Fortem or its representatives by any of its clients. Rankings published by magazines and others are generally based on information prepared and/or submitted by the recognized advisor. Awards may not be indicative of one client?s experience or of the Firm?s future performance.  Neither Fortem nor the recognized advisor has paid a fee for inclusion on a list, nor purchased any additional material from the award provider. The criteria for each award is listed below:

Barron's Disclosure:

The Barron's award is is based on the recognized adviser's assets under management, contribution to the firm's revenues and profits, and quality of practice.  Investment performance is not an explicit criteria.  Additional information about this award is available at http://online.barrons.com/report/top-financial-advisors. 

Five Star Professional Disclosure:

The Five Star Wealth Manager award is based on 10 eligibility and evaluation criteria: 1) Credentialed as an investment advisory representative (IAR) or a registered investment advisor; 2) Actively employed as a credentialed professional in the financial services industry for a minimum of five years; 3) Favorable regulatory and complaint history review; 4) Fulfilled their firm review based on internal firm standards; 5) Accepting new clients; 6) One-year client retention rate; 7) Five-year client retention rate; 8) Non-institutionalized discretionary and/or non-discretionary client assets administered; 9) Number of client households served; and 10) Educational and professional designations. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or the magazine. The award methodology does not evaluate the quality of services provided.  Additional information about this award is available at: fivestarprofessional.com/2016FiveStarWealthManagerMethodology.pdf

Fortem Financial 2016. All rights reserved. 

Data Sources:  News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations.  Market Data: Based on reported data in WSJ Market Data Center (indexes); U.S. Treasury (Treasury Yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates).  All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. 

Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice.  The opinions expressed are solely those of the author, and do not represent those of Fortem Financial, LLC or any of its affiliates.  Past performance is no guarantee of future results.  All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.  Forward looking statements are based on current expectations and assumptions, the economy, and future conditions.  As such, forward-looking statements are subject to inherent uncertainty, risks, and changes in circumstance that are difficult to predict.  Actual results may differ materially from the anticipated outcomes.  Carefully consider investment objectives, risk factors and charges and expenses before investing.  Fortem Financial is a registered investment adviser with the SEC.  Advisory services are offered through Fortem Financial.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks.  The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy.  The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange.  The Russell 2000 is a market-cap weighed index composed of 2,000 U.S. small-cap common stocks.  The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide.  Market indices listed are unmanaged and are not available for direct investment.

Categories: Monthly Market Commentary

Earnings and Tariffs are the two tails wagging the dog

Lawrence Kudlow, President Trump's head economic advisor, coined the phrase, “Corporate profits are the mother’s milk of the stock market."  Without profits, stocks will not go up in value.  Corporate profits for Q2 have been coming in better than expected and should be leading the market higher.

We believe current trade negations and the mid-term elections are currently weighing the market down. President Trump is pivoting away from trade spats with traditional US allies towards greater conflict with China. Trump believes that trade is helping him in the midterm elections and China thinks that Trump/Republicans will suffer losses in the midterms. The Chinese are trying to hold off negotiations until after the election because they think Trump will be weakened politically. As such, we do not expect a reprieve from China trade headwinds in the third quarter despite improvements in other trade areas.

The good news is that NAFTA negotiations have restarted and it's possible that there will be a NAFTA deal by Labor Day. The US and Mexico are near an agreement and once that is finalized (Aug 15 target), Canada will be brought in to complete the deal (Aug 26 target)

Last week President Trump negotiated a deal with the EU that avoids tariffs on EU autos for the time being and negotiations are underway to see if a larger deal can be reached on broader industrial tariffs. As part of the EU deal, Europe and the US agreed to reform the World Trade Organization (WTO). Although the deal did not specifically reference China, it is targeted at the country. The US wants to isolate China from the rest of the world to pressure them into reforms

Our sense is that the US and China will start negotiating after the midterm elections. This timetable could be accelerated if the Republicans improve in the polls as it would signal to the Chinese that Trump may in fact be emboldened after the election, not weakened. Conversely, if US economic growth were to slow meaningfully, it would force Trump to reevaluate his stance and the timing on these items. With Corporate profits hitting new highs and benefits from the tax plan still showing up in the data, we do not expect that economic growth to slow through the rest of 2018.

Capex spending is up year-over-year and is finally being rewarded by the market over share repurchases. Companies spending on capex are outpacing the S&P by nearly 200 basis points year-to-date. It is still early, but an emphasis on capital spending could greatly extend the business cycle as investments boost productivity, earnings and wages while keeping unit labor costs low and the Fed accommodative. 

Last week the indices edged higher despite volatility in response to trade tensions.  The Nasdaq Composite rebounded (0.96%) following two weeks of negative returns; the S&P 500? Index rose 0.76% followed by the Russell 2000? Index (+.62%) and the Dow Jones Industrial Average (+.05%.).  Strong earnings reports provided momentum; led by strong iPhone sales, Apple reported a higher-than-expected 8% increase in earnings.  The market’s positive response raised Apple’s market cap above $1 trillion, a stock market record.  The Technology sector benefitted not only from earnings reports but also company initiatives such as Qualcomm’s announced $10 billion share repurchase plan following its failed acquisition of NXP Semiconductors.  The market response to better-than-expected earnings reports has been somewhat mixed; investor concerns regarding trade tensions, the possibility that some companies are reaching peak revenue growth, and/or disappointing economic data may stall market momentum.

On Friday, the July jobs reports included a lower-than-expected number of jobs (157,000 versus 193,000); but the June number was adjusted higher (248,000 from 213,000) and the unemployment rate dropped to 3.9%.  Wages grew modestly to stay essentially even with inflation.  Employment conditions are the best since the Great Recession; many employers are initiating training programs to facilitate hiring of individuals without the experience or education usually required.  Trade tensions continue to dominate the headlines: the U.S. announced an increase, from 10% to 25%, of the potential trade tariffs for Chinese goods; China quickly responded with plans to place tariffs on an additional $60 billion on U.S. goods including oil and natural gas.  Furthermore, China indicated plans to continue purchasing Iranian oil after the re-imposition of the U.S. trade embargo in November.  To date, companies are reporting little trade-related impact on supplies or costs yet they are carefully monitoring updates.  This morning, the CEO of a major container leasing company indicated that shipping demand is strong; their clients expect little impact over the near term.

Trade, energy, Brexit and earnings reports dominate the news headlines; but, beyond the rhetoric, these issues have not disrupted the market’s advance.  The economy continues to provide market momentum.  The impasse between the U.S. and China is a potential threat; however, the markets continue to reflect expectations for a negotiated resolution.  So far, 80% of the companies in the S&P 500? have reported earnings.  Looking ahead, and absent a major event, the light trading volumes associated with late summer may expose the markets to some news-related volatility; otherwise, the markets will likely maintain their positive bias.

Source: Pacific Global Investment Management Copany

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments. 


Last Week's Headlines

Google Cloud's partnership network begins paying dividends

1. When Google Cloud brought Diane Greene on board at the end of 2015, one of her goals was to expand the division's partnership network, an approach she found worked quite well when she was...

Read Story

Apple's iPhone X Holds Its Value Better Than Any Previous...

It's a good time to be an iPhone X Owner, a stuyd's data suggests.

Read Story

 


 

Brian Amidei is Coachella Valley's only Barron's Magazine Top 1,000 Advisor in 2013 and 2014!

Brian Amidei, along with Partners Joseph Romano and Brett D'Orlando have also been named *2014, 2015, 2016, 2017 Five Star Wealth Managers!

Disclosures:

Awards and recognitions by unaffiliated rating services, companies, and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Fortem is engaged, or continues to be engaged, to provide investment advisory services; nor should they be construed as a current or past endorsement of Fortem or its representatives by any of its clients. Rankings published by magazines and others are generally based on information prepared and/or submitted by the recognized advisor. Awards may not be indicative of one client?s experience or of the Firm?s future performance.  Neither Fortem nor the recognized advisor has paid a fee for inclusion on a list, nor purchased any additional material from the award provider. The criteria for each award is listed below:

Barron's Disclosure:

The Barron's award is is based on the recognized adviser's assets under management, contribution to the firm's revenues and profits, and quality of practice.  Investment performance is not an explicit criteria.  Additional information about this award is available at http://online.barrons.com/report/top-financial-advisors. 

Five Star Professional Disclosure:

The Five Star Wealth Manager award is based on 10 eligibility and evaluation criteria: 1) Credentialed as an investment advisory representative (IAR) or a registered investment advisor; 2) Actively employed as a credentialed professional in the financial services industry for a minimum of five years; 3) Favorable regulatory and complaint history review; 4) Fulfilled their firm review based on internal firm standards; 5) Accepting new clients; 6) One-year client retention rate; 7) Five-year client retention rate; 8) Non-institutionalized discretionary and/or non-discretionary client assets administered; 9) Number of client households served; and 10) Educational and professional designations. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or the magazine. The award methodology does not evaluate the quality of services provided.  Additional information about this award is available at: fivestarprofessional.com/2016FiveStarWealthManagerMethodology.pdf

Fortem Financial 2016. All rights reserved. 

Data Sources:  News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations.  Market Data: Based on reported data in WSJ Market Data Center (indexes); U.S. Treasury (Treasury Yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates).  All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. 

Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice.  The opinions expressed are solely those of the author, and do not represent those of Fortem Financial, LLC or any of its affiliates.  Past performance is no guarantee of future results.  All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.  Forward looking statements are based on current expectations and assumptions, the economy, and future conditions.  As such, forward-looking statements are subject to inherent uncertainty, risks, and changes in circumstance that are difficult to predict.  Actual results may differ materially from the anticipated outcomes.  Carefully consider investment objectives, risk factors and charges and expenses before investing.  Fortem Financial is a registered investment adviser with the SEC.  Advisory services are offered through Fortem Financial.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks.  The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy.  The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange.  The Russell 2000 is a market-cap weighed index composed of 2,000 U.S. small-cap common stocks.  The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide.  Market indices listed are unmanaged and are not available for direct investment.

Recent Posts

PRIVACY NOTICE REGARDING CLIENT PRIVACY

Fortem Financial Group, LLC, has adopted this policy with recognition that protecting the privacy and security of the non-public personal information we obtain about our customers is an important responsibility.

All financial companies choose how they share your non-public personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your non-public personal information. Even when you are no longer our customer, we will only share your non-public personal information as described in this notice. So, please read this notice carefully to understand what we do.

The types of non-public personal information we collect and share depend on the product or service you have with us. This information can include items such as your Social Security number and income, your account balances and transaction history, and your investment experience and account transactions.

We collect your non-public personal information in a variety of ways. For example, we obtain your non-public personal information when you open an account or give us your income information, tell us about your portfolio or deposit money, or enter into an investment advisory contract. We also collect your non-public personal information from other companies. For example, from the custodians who hold your account assets.

All financial companies need to share customer’s non-public personal information to run their everyday business. Below, we describe the reasons we can share your non-public personal information and whether you can limit this sharing.

We share your non-public personal information for our everyday business purposes such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, report to credit bureaus, to protect the confidentiality or security of your records, or as permitted by law. We may also share your non-public personal information for our own firm’s marketing purposes; so that we can offer our products and services to you.

Federal law gives you the right to limit only sharing non-public personal information about your credit worthiness for our affiliates’ everyday business purposes; sharing non-public personal information about you with our affiliates to market to you; and sharing non-public personal information with non-affiliates to market to you.

We don’t share non-public personal information about your creditworthiness with our affiliates for their everyday business purposes. We don’t share your non-public personal information with our affiliates to market to you. We don’t share your non-public personal information with non-affiliates to market to you. We also don’t share your non-public personal information for joint marketing with other financial companies. State laws and individual companies may give you additional rights to limit sharing.

We share non-public personal information with our parent company affiliate, Focus Financial Partners, LLC, for its internal and external auditing purposes. We also share your non-public personal information with a non-affiliate for the purpose of aggregating it and providing summary information based on this data to our parent company, Focus Financial Partners, LLC.

To protect your non-public personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

Our policy about obtaining and disclosing non-public personal information may change from time to time. We will provide you notice of any material change to this policy before we implement the change.

If you have questions please call us at 760-206-8500 or go to our website at www.fortemfin.com.

IMPORTANT CONSUMER DISCLOSURE

Fortem Financial, LLC ("Fortem Financial" or the "Firm") is a federally registered investment adviser with offices in California. Fortem Financial and its representatives are in compliance with the current registration and notice filing requirements imposed upon federally registered investment advisers by those states in which Fortem Financial maintains clients. Fortem Financial may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements.

This website is limited to the dissemination of general information regarding the Firm's investment advisory services offered to U.S. residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the publication of Fortem Financial' website on the Internet should not be construed by any consumer and/or prospective client as a solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment, tax or legal advice. Furthermore, the information resulting from the use of any tools or other information on this website should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from Fortem Financial. Any subsequent direct communication from Fortem Financial with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. Fortem Financial does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to this website or incorporated herein, and takes no responsibility therefore. All such information is provided for convenience purposes only and all users thereof should be guided accordingly.

All statements and opinions included on this website are subject to change as economic and market conditions dictate, and do not necessarily represent the views of Fortem Financial or any of their respective affiliates. Past performance may not be indicative of future results and there can be no assurance that any views, outlooks, projections or forward-looking statements will come to pass. Investing involves risk, including the potential loss of principal, and the profitability of any particular investment strategy or product cannot be guaranteed.

Any rating referenced herein may not be representative of any one client's experience. Further, the Firm's receipt of any rating is not indicative of the Firm's future performance. The Charles E. Merrill Circle of Excellence award is granted by Merrill Lynch for outstanding client service and satisfaction. The award is granted based on annual criteria established by Merrill Lynch for its top decile advisors. The Barron's Top 1,200 Financial Advisors rating of the top financial advisors in the United States is based on data provided by participating firms. The following factors are included in the rankings: assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. Investment performance is not an explicit component. The Five Star Professional award is granted by Five Star Professional and recognizes service professionals who provide quality services to their clients based on data provided by participating firms. The award is granted based on the following ten objective eligibility and evaluation criteria: credentialed as an investment advisory representative (IAR) or a registered investment advisor; actively employed as a credentialed professional in the financial services industry for a minimum of five years; favorable regulatory and complaint history review; fulfilled their firm review based on internal firm standards; accepting new clients; one-year client retention rate; five-year client retention rate; non-institutionalized discretionary and/or non-discretionary client assets administered; number of client households served; and educational and professional designations. Feedback from consumer surveys will augment a regulatory history review. Firms have the option to provide input on award candidates from their firm, regardless of the nomination source. The Palm Springs Life's "40 Under 40" Rising Young Professionals to Watch in the Coachella Valley is based upon nominations from the local business community and selected by the staff of Palm Springs Life.

For information pertaining to the registration status of Fortem Financial, please refer to the Investment Adviser Public Disclosure website, operated by the U.S. Securities and Exchange Commission, at www.adviserinfo.sec.gov., which contains the most recent versions of the Firm's Form ADV disclosure documents.

ACCESS TO THIS WEBSITE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND WITHOUT ANY WARRANTIES, EXPRESSED OR IMPLIED, REGARDING THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS WEBSITE OR ANY THIRD PARTY WEBSITE REFERENCED HEREIN.