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Dow Industrial Average Tops 25,000!

Equity indices pushed higher around the globe on positive economic data that showed the worldwide expansion may remain intact in 2018. ADP Research reported that 250,000 new private-sector jobs were added in December, the most in nine months and topped

projections for 190,000. Shortly after the news broke and minutes after the opening bell, the Dow Industrials surpassed the 25,000 level for the first time in history. Interestingly, this spike in domestic job growth is precisely what we discussed as the anticipated outcome from our discussion on Trumponomics at the beginning of 2017. We did not fully anticipate was the magnitude of global earnings growth during 2017 that would propel stock prices to such highs so quickly. Fortunately, our investment strategies has overweighted equities (both foreign and domestic) for quite some time. We have been able to maintain such stock exposure while at the same time, constraining risk due to our hedging process, our AFP Defined Risk Strategy There are other factors that are propelling this market to new highs such as higher than expected holiday spending and the passing of historic tax reform. We will spend some time on our conference call next week explaining some of the winners and losers of the new tax law. For those who like to make tactical financial planning decisions, be sure to take a few minutes and join our call as we will present multiple interesting takeaways from the new law.

Bottom Line: Investors have another reason to throw a party as the Dow crosses 25,000. It's great to participate, but equally important, we remain prepared to take advantage of an overdue correction when it comes. Thank you for the continued opportunity to serve you and all the best in 2018!



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