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The Word from Main Street

Market Update for the Week of September 17th, 2018

We spoke about the volatility of September and October during which time previous historical events such as the October crash of 1987 and the Flash crash of 1915 rocked markets. In both cases, the markets rebounded over the next few days/months. This year, we eclipse the 10th anniversary of the 2008 financial panic. We don’t believe another one is impending, but a normal correction would not be surprising. On the positive side, the economy is currently firing on all cylinders. As Louis Navellier (Navellier & Associates, Inc.) pointed out last week, “beyond September, we have the year’s strongest quarter to look forward to. October, in the past 20 years has been seasonally strong. Furthermore, forecasted third-quarter sales and earnings are expected to remain strong, thanks to 4.4% estimated GDP growth, so “peak earnings momentum” has yet to arrive.” The Federal Reserve is also meeting on September 26th. While they are expected to raise rates, Navellier goes on to say that he believes the Fed will then issue a “dovish” statement, which should boost the market as September ends.

We’ll see what happens and will keep you informed. Meanwhile, we push forward with U.S. Equities still in the lead position, relative to competing assets, with International Equities a weak second at this time. Below is the DALI (Dynamic Asset Level Investing) ranking as of September 14th, 2018. No changes to the portfolios at this time. Meanwhile, although the torrential rain from Hurricane Florence may be coming to an end in the Carolinas, the slow motion system may continue flooding the region for days – or potentially weeks. We’ll see how this disaster plays out in the economy over the next quarter.

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CAR-0918-02745

Past performance is no guarantee of future results. All investing involves risk including the loss of principal.

Technical analysis is based on the study of historical price movements and past trend patterns. There is no assurance that these movements or trends can or will be duplicated in the future. Dorsey, Wright & Associates developed the indicators described above. They have been prepared without regard to any particular investor's investment objectives, financial situation and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this report without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions.

Any statements nonfactual in nature constitute only current opinions and interpretations of their indicators, which are subject to change without notice. There may be instances when fundamental, technical and quantitative opinions may not be in concert. Any opinions expressed or implied herein are not necessarily the same as those of Wells Fargo Advisors or its affiliates. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for informal purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Data and opinions are current as of 9/17/18. Additional information is available on request.

Dorsey Wright’s “DALI" employs relative strength-based analysis to rank macro asset classes based on developing leadership trends within the global capital markets. The objective guidance within DALI provides the tools necessary to properly allocate portfolio across all major asset classes in an effort to emphasize strength wherever it exists. U.S. Equities, International Equities, Commodities, Global Currencies, Fixed Income and Cash are evaluated daily to identify dynamic developments across investment genres, as well as within them. This tool provides the tactical precision that allows investors to adapt as the market leadership changes.

Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of Main Street Wealth Advisors and are not necessarily those of Dorsey, Wright & Associates, LLC, Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Main Street Wealth Advisors is a separate entity from WFAFN.

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