This presentation is solely for informational purposes and not a solicitation to invest. Stonehenge Analytics offers and publishes forecasts of future likely price movements of various financial assets. These are opinions formulated from our cycles-based historical analytical research. They are not, nor are they represented to be investment advice. Individuals or institutions choosing to act on these opinions are doing so at their own risk. Stonehenge Analytics does not warrant or guarantee that acting upon its published opinions will produce financial gain. Past historical performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Individuals and institutions should consult a financial advisory professional before making any investment.

Stonehenge Analytics Special Research ReportJanuary 20, 2017

Very Long-Term Cycles Analysis through 2040 for S&P 500 Index, using December 1957 to December 2016 Weekly Price Data With the U.S. stock market’s current bull market since March 2009 approaching its 8 th birthday the timing seemed appropriate to the Stonehenge Analytics team to undertake a cycles analysis of the benchmark S&P 500 index over a very long historical time period looking exclusively for long-term, multi-month and multi-year price cycles which might give us a clue as to when we might expect the next significant bear market to begin. This sort of investigation required slightly different methodology be employed than what we normally use to investigate shorter-term price cycles over shorter periods of time. We ran three different analyses using weekly-closing price data for the S&P 500 instead of daily-close price data. Instead of programming the cycles identifying software to look for cycles that produced the highest total return from both long and short positions taken at cycle lows and cycle highs we programmed it to look for cycles that produced the highest total return from just purchases made at cycle lows that were subsequently sold for cash at cycle highs and not reinvested again until the next cycle low. In other words, no attempts were made to profit from short sales

at cycle highs. It was a “Buy Only” total return parameter much more applicable to management of long-term investment-oriented portfolios than to shorter-term trading-oriented portfolios. Our three analyses excluded shorter-term cycles. In our first analysis we excluded cycles less than 13 weeks in duration from price high to price high or price low to price low. The second analysis excluded cycles less than 26 weeks in length. The third analysis excluded cycles less than 52-weeks in length. All three analyses were limited to looking for price cycles no longer than approximately 17 years and 9 months in length and also limited to look for only the 30 best performing “Buy Only” total return cycles. All three analyses used weekly-close price data from December 16, 1957 through December 30, 2016 for their cycle searches. The Stonehenge Analytics team selected 7 cycles from the 13-week and longer analysis and 8 cycles from the 26-week and 52-week and longer analyses for their combination of superior “Buy Only” total returns and percentage of winning trades for constructing cycle composite lines to compare with actual S&P historical price behavior. The cycles used in each analysis are listed in the upper left corner of their respective charts. We will note that many of the same cycles are listed in all three analyses. Our main question that we wished to answer with this investigation was whether or not the three different analyses that used three different minimum cycle lengths would produce similar results. If so, then we could have some confidence that their forward projections would present a reasonable “road map” for future S&P 500 price behavior for the next 20 years or so from today. Any such road map with a reasonable probability of being close to accurate, particularly in regard to the timing of future major S&P price low points, would be especially valuable to both individual investors trying to manage their own 401(k) retirement funds and also to professional money managers charged with meeting future actuarial target returns incorporated into funding assumptions for institutional pension, profit-sharing and disability funds.

This Stonehenge Analytics Special Report is divided into three sections. The first uses charts of the composite cycle lines from all three analyses compared to actual S&P price behavior since 1980 and out into the future for approximately 24 years or so. These three charts are stacked on top of each other for ease of comparison. The second section is identical to the first section except that a more detailed “close-up” view of the composite cycle lines from 2008 through 2040 is presented. The third section shows the individual cycles used to construct each composite cycle line for the same 2008 to 2040 time period as the second section. Again, the results of all three analyses are stacked on top of each other for ease of comparison. Explanatory analysis of each section appears directly beneath each section heading and above the associated chart stacks.

Section One

We have identified dates of composite cycle highs and lows that are common to all three analyses by putting those dates in bold blue italics on the three composite cycle charts below. The Stonehenge Analytics opinion is that long-term investment-oriented portfolio managers should pay especial attention to the bold blue italics dates because the two longest-term cycles used in the ex 52-week and under composite cycle line were instrumental in producing these cycle high and low points. These two cycles were 483 weeks (approximately 9 years, 3 months) and 847 weeks (approximately 16 years, 2 ½ months). These two cycles were not used in the ex 13-week and under and ex. 26-week and under composite cycle lines. Longer-term cycles are more powerful than are shorter-term cycles. Forecast dates of cycle highs and lows in bold blue italics where all there analyses agree therefore have very good chances of being reasonably accurate predictors of actual S&P price behavior, particularly the forecast cycle low points. All three analyses proved to have been exceptionally good at identifying the approximate timing of the bottoms of the two most recent long-term bear markets for the S&P 500 and the U.S. stock market. The ex-13-week and under and ex-26-week and under analyses were also very good at identifying the approximate timing of the recent intermediate-term S&P corrective decline that concluded on February 11 of last year. The ex-52-week and under analysis did not forecast this decline. This rather strongly suggests that the July 2015 to February 2016 price decline was not a product of the very long-term 483-week (approximately 9 years, 3 months) and 847-week (approximately 16 years, 2 ½ months) price cycles used to construct the ex-52-week and under composite line that were not used to construct the two analyses that instead included shorter-term cycles. Had the Stonehenge Analytics team performed these analyses in the 4th quarter of 2015 we would have known and could have reported with a high degree of confidence at the time that the steep downward price move by the S&P between July 20 and September 28, 2015 was not the first

downward leg in a new bear market for the U.S. stock market. The probability was prohibitively high that the bull market trend in place since March 2009 would be resumed after the correction then in progress had run its course because the 2015-2016 downward price move was not a product of very long-term price cycles. Looking ahead, the next upcoming composite cycle lows in bold blue italics on all three charts will arrive in the March 16 to May 10, 2021 time frame. On the ex. 13-week and under and ex. 26-week and under composite cycle lines this expected low is preceded by straight-down drops from common cycle highs forecast for April 8-9, 2019. Though the two cycle composites forecast an S&P cycle high for that date neither commences its straight-down drop until early in 2020. The ex.52-week and under composite cycle line does not forecast a straight down drop from its cycle high forecast for a much earlier date, September 19 , 2017. It is instead a 3-step cascade downward. The final cascade step begins from an interruption in the down cycle line that will end on February 25, 2020. This forward date is also approximately where the straight-down drops of the two other composite cycle lines begin. It is therefore the Stonehenge Analytics team’s conclusion that the S&P 500 Index is unlikely to experience downward price moves between today and April 2019 that will develop into a multi-month or multi-year bear market. Such downward price moves will instead be corrective in nature, and the bull market up-trend that has been in place since March 2009 will be resumed after these relatively short-term corrections have concluded. Our confidence that the 2021 cycle lows will come in as advertised on all three composite lines is greatly enhanced by the fact that the “Trump Rally” by the S&P 500 is producing an inversion of forecast lows made by the ex. 26-week and under and ex. 52-week and under composite cycle lines. Cycle inversions are an occupational hazard of cycles-based forecasting, but are extremely useful because inversions nearly always enhance the probability that the next cycle inflection point in the same direction as the inverted inflection point will come in as advertised. For both cycle composite lines being inverted by the “Trump Rally” the next cycle lows are scheduled for the first half of 2021 on March 16 and April 20. With the probability of a downward price trend by the S&P 500 of at least 13 to 14 consecutive months between February 2020 and March-April 2021 greatly enhanced by today’s cycle inversion the Stonehenge Analytics team can issue a very strong opinion that investment-oriented portfolio managers can make plans today to begin to gradually reduce the proportion of their portfolios held in large-cap U.S. stocks between April 2019 and February 2020 with a view to making sure they have ample cash available in 2021 to acquire large-cap U.S. stocks at greatly reduced entry point prices. All three cycle composite lines forecast an up-and-down recovery by the S&P 500 from the expected bear market low in 2021. A secondary bear market low is forecast buy all three for the October-December time frame in 2023. This could be either a higher or lower price low for the S&P compared to its expected 2021 low. Therefore long-term portfolio managers will need to make an assessment at the time of the expected 2021 price low as to whether or not all or just some of the cash built up in anticipation of a one year or slightly longer bear market should be put into large-cap stocks. However, all available cash should be invested in large-cap stocks no later than the October –December 2023 time frame so that the strong upward price trend forecast by all three composite cycle lines to their next cycle highs in the September-October 2025 time frame can be captured in its entirety. After October 2025 the composite cycle lines diverge until the March-May 1932 time frame. All three composite cycles agree that the S&P 500 will have produced a very strong upward price trend for at least the preceding two years and possibly for the preceding 8 ½ years since October-December 2023. All three composite cycle pictures show very steep, straight-down drops into common cycle lows in the November-December 2036 time frame. For all three composite cycle lines the forecast lows in late 2036 compare quite favorably to their 2009 cycle lows. To the Stonehenge Analytics team this 4 ½ year time period between March-May 2032 and November-December 2036 looks very dangerous to long-term investment portfolios. We will therefore issue an opinion that individual investors in 401(k) retirement plans should contribute the maximum allowed under their plan starting at the expected bear market low in 2021 and continue doing so for at least the next 4 to 5 years. It is also our opinion that individual 401(k) plan investors who will be at or approaching retirement age in early 2032 anticipate reallocating a substantial portion of their portfolios away from large-cap U.S. stocks and into financial assets with much less risk of principal loss at about that time.

Apr. 29, 2002

June 19, 2000

May 29, 2007

May 11, 2009

Feb. 1, 2016

Apr. 8, 2019

May 10,

Dec. 5, 2022

Oct. 27, 2025

Jan. 18, 2027

Mar. 5, 2029Oct. 16,

2023 May 27, 2030

May 17,

May 30, 2033

Dec. 24, 2034

Nov. 24, 2036

Mar. 6, 2000

May 6, 2002

May 21, 2007

May 11, 2009

Jan. 24, 2017Inversion

Apr. 9, 2019

Apr. 20, 2021

Dec. 6, 2022

Oct. 17, 2023

Oct. 7, 2025

Feb. 20, 2029

Apr. 27, 2032

June 21,

Dec. 12, 2034

Nov. 25, 2036

Section Two

In Section Two we will present the same charts as in Section One with the difference being that we will look only at the 2008 to 2030 time period “close-up” view. As with the previous set of three charts we will be primarily interested in cycle composite line high and low inflection points that are common to all three analyses. As before, inflection point dates in bold blue italics are common to all three analyses. Inflection point dates in bold red italics on the top two charts are common to the ex 13-week and under and ex 26-week and under analyses only. The close-up view of the top chart of the ex 13-week and under analysis reveals that it also shows a composite cycle inversion late last year on August 15, 2016, a date in which the S&P 500 set a new 52-week price high at 2,193 that was not matched again until three months later on November 21, 2016. This fact gives the Stonehenge Analytics team increased confidence that the next forecast low inflection point for May 10, 2023 will come in as advertised, particularly since all three amylases have forecast S&P low inflection points for the March-May 2021 time period. The addition of more detail provided by the “close-up” view also shows that the ex 13-week and under composite cycle line will not commence its straight-down drop into the forecast March-May

May 30, 2000

July 8, 2002

July 30, 2007

June 1, 2009

Mar. 2, 2015

Dec. 19, 2016Inversion

Sept. 19, 2017

Feb. 25, 2020

Mar. 16, 2021

Dec. 6, 2022

Dec. 5, 2023

Mar. 23,

May 17, 2033

Jan. 2, 2035

Dec. 2, 2036

Nov. 23, 2038

Nov. 13, 2040

Sept. 2, 2025

June 2, 2026

2021 cycle low until after December 10, 2019. The close-up view of the ex 26-week and under composite cycle line shows it making a secondary high on May 19, 2020. Long-term investment-oriented portfolio managers including individuals managing their personal 401(k) plans will have at least 8 months of time between April and December 2019 and possibly as much as 12 months until May 2020 to adjust their portfolios in anticipation of an excellent buying opportunity being presented to them 12 to 17 months later in March-May 2021. While all three analyses show a “rally and re-test” pattern between March-May 2021 and October-December 2023 both the ex 26-week and under and ex 52-week and under composite cycle lines show the 2023 S&P low as likely to be a higher low than the 2021 low. The Stonehenge Analytics team suspects that the relationship between the two forecast S&P lows is likely to resemble the relationship between its March 2009 and October 2011 successively higher price lows. Both were excellent price entry points for long-term investment-oriented accounts. The close-up views of the ex 13-week and under and ex 26-week and under composite lines shows both forecast to make “lower highs” in January 2027 than the peak cycle highs forecast for both for October 2025 that is also a cycle high forecast for the ex 52-week and under composite line. Based upon our historical experience it is the Stonehenge Analytics team’s opinion that a sustained downward price move by the S&P 500 will be unlikely to commence prior to the second and “lower highs” forecast for the composite lines on the two upper charts. Therefore, long-term investment-oriented account managers who take full advantage of the 2021 and 2023 buying opportunities should expect to hold the large-cap stocks bought at that time for at least 4 to 6 years from date of purchase, depending upon whether the purchase date was in 2021 or 2023. After January 2027 the two upper cycle composite lines show a protracted downward price trend for the S&P 500 through February-March 2029. This is not confirmed by the ex 52-week and under cycle composite on the bottom chart. However, the ex 52-week and under cycle composite also does not exactly contradict the other two composite cycle lines. It shows an up-and-down sequence of highs and lows through April 2030. All three cycle composite lines show a cycle low for the April-May 2030 time period. The Stonehenge Analytics team therefore concludes that the downward price trend forecast by both the ex 13-week and under and ex 26-week and under composite cycle lines cannot safely be ignored by long-term investment-oriented account managers. For today’s forward planning purposes the expected holding period for large-cap stock purchased in 2021 and/or 2023 should not be longer than until January 2027. All three cycle composite lines forecast a strong upward price move from April-May 2030 through March-May 2032. All three composite cycle lines are also forecasting a protracted price topping period between March-May 2032 and December 2034-January 2035 price cycle high inflection points, with an intervening price low made in May-June 2033. Finally, all three cycle composite lines show straight-down and deep declines between December 2034-January 2035 and November-December 2036. In the opinion of the Stonehenge Analytics team this time period is highly likely to see the largest stock market decline in percentage terms since the October 2007-March 2009 bear market, and potentially since the Great Depression. It is for this reason that we are willing to issue an opinion today specifically aimed at individuals who will be at or fast approaching their retirement age between 2032 and 2034. This will be a stock market decline that retirees do not wish to take chances with. It is admittedly a long way out in the future and requires no current action. In fact, the rest of the long-term cycles forecast encourages continued investment in large-cap U.S. stocks until then, provided that steps are taken to make sure that ample cash is available to be invested at the forecast price low points in 2021 and 2023. But, the three charts below very strongly suggest that the power of compounding will come to an abrupt halt between 2032 and 2034 and will begin working very rapidly in reverse afterward. To this end we will point out that the ex 52-week and longer cycle composite does not project the lowest price point will be reached until November 2040. For today, individuals who are 45 years old and older just need to keep in mind that something very threatening to their retirement portfolios is lurking out in 2032 to 2034 somewhere and that they will have to take action at that time to avoid the potentially disastrous consequences of failing to take action to protect themselves.

Feb. 1, 2016 Aug. 15, 2016Inversion

Apr. 8, 2019 Dec. 10,

2019

May 10, 2021

Dec. 5, 2022

Oct. 16, 2023

Oct. 27, 2025 Jan. 18,

2027

Mar. 5, 2029

May 17, 2032

Dec. 24, 2034

Nov. 24, 2036

May 27, 2030

May 30, 2033

Jan. 24, 2017 Inversion

Feb. 16, 2016

May 19, 2020

Apr. 9, 2019

Apr. 20, 2021

Dec. 6, 2022

Oct. 17, 2023

Oct. 7, 2025

Feb. 20, 2029

Apr. 30, 2030

Apr. 27, 2032

Jan. 2, 2035

June 21, 2033

Nov. 25, 2036

Jan. 19, 2027

Section Three

In Section Three we will show the same “close-up” view of all three cycles analyses as in Section Two but instead of composite cycle lines each individual cycle used to construct that particular composite line will be shown. What we are especially interested in finding are “nestings” where multiple cycle used to construct that composite cycle line have coincident low or high inflection points compressed within a relatively short time frame of approximately one year or less. The Stonehenge Analytics team’s collective experience interpreting cycles analyses has been that “nestings” of multiple cycle lows have been particularly accurate in forecasting approximate dates of future S&P highly significant price low points. A concurrent “nesting” of cycle highs on the other hand has more often coincided with the height of upward price momentum by the S&P 500 as measured by such things as advance/decline and new high and new low statistics. The actual highest S&P price point usually has not been reached until well after both the nearly coincident peak of multiple cycles but also well after the peak of upward price momentum as measured by these statistics. The top and bottom charts showing the individual cycles used to construct the ex 13-week and under composite line and the ex 52-week and under composite cycle line illustrate the predictive power of a “nesting” of multiple cycle lows within a very short time frame. Both show that all 7 cycles used to construct the 13-week and under cycle composite line and 6 of the 8 cycles used to

Dec. 19, 2016 Inversion

Sept. 19, 2017

Feb. 25, 2020

Mar. 16, 2021

Dec. 6, 2022

Dec. 5, 2023

Sept. 2, 2025

June 2, 2026

Apr. 23, 2030

Mar. 23, 2032

May 17, 2033

Jan. 2, 2035

Dec. 2, 2036

Nov. 9, 2038

Nov. 13, 2040

construct the ex 52-week and under cycle composite line were forecast to reach low inflection points between February 9 and July 9, 2009. The actual S&P price low was made on March 6, 2009. It was preceded by a 17- month decline from the peak high in October 2007 of its preceding 5-year long bull market. During this 17-month long bear market the S&P 500 fell by -57.7% from peak intraday price high (1,576) to trough intraday price low (666). Looking ahead, there is no similar “nesting” of multiple cycle lows within a short time frame for the ex 13-week and under composite cycles until the June 24 to December 30 time frame in 2036. The middle chart of the individual cycles used to construct the ex 26-week and under composite cycle line also show that they will not have a “nesting” of multiple cycle lows for its 8 individual cycles prior to calendar year 2036..These facts lead the Stonehenge Analytics team to conclude that the immediately upcoming bear market downward price trend forecast by all three composite cycle lines for the 2019-2020 to 2021-2023 time period will not be a cataclysmic collapse as was the 2007-09 bear market. None of the three charts shown below has a “nesting’ of multiple individual cycle lows evident for either of the two potential bear markets their composite cycle lines indicate are likely to take place between today and the year 2032. We will instead expect that the S&P 500 and U.S. stock market will experience garden variety bear markets more in line with historical averages. Elapsed time from peak S&P price high to trough S&P price low is likely to range between 12 and 18 months. Price damage is more likely to range from -25.0% to -35.0% that the extreme -57.7% damage inflicted by the 2007-09 bear market. Since all three composite cycle lines are forecasting an S&P low for the March to May, 2021time frame we should expect that the preceding price high for the S&P will be reached between the December 2019 and May 2020 time frame indicated by the three cycle composite lines. Our final commentary is directed specifically to individual 401(k) plan participants. Since the top two charts below show very ominous “nestings” of multiple cycle lows in 2036 and the bottom chart of the ex 52-week and under composite cycles shows its own “nesting” of individual cycle lows a little later in 2040 the Stonehenge Analytics team is very apprehensive that a repeat of 2007-09 or even worse lies out beyond 2032 somewhere. The middle chart of the individual cycles used to construct the ex 26-week and under composite cycle line shows a “nesting” of cycle high inflection points between October 1, 2031 and May 1, 2032 that precedes these ominous-looking “nestings” of cycle lows in 2036 and 2040. This gives us confidence that the S&P bull market that precedes the bear market that is forecast to produce these 2036 and 2040 price lows will be very vigorous to the upside. This combination of a very vigorous bull market into at least early 2032 followed by an equally or even more vigorous bear market following on its heels makes it imperative that 401(k) plan participants maximize to the best of their ability their stock market returns between today and early 2032. This is best done by putting as much cash to work in large-cap stocks like those in the S&P 500 at or near to their price low points. Our cycle analyses strongly indicate that just such an opportunity will be presented in the March-May 2021 time period. Conversely, 401(k) plan participants should put very little cash to work at or near to cycle high inflection points and should refrain from adding to stock positions until the bear market that is forecast for December 2019 - May 2020 to March - May 2021 has run its course. Forecast cycle low points must be viewed as precious buying opportunities to put cash to work at low prices that will maximize total return between 2021 and 2032. Maximum total returns will not be produced employing the popular “dollar cost averaging” method of purchasing a set dollar amount large-cap stocks each month regardless of their price. The more cash that is put to work at or near to a forecast long-term cycle low the greater will be the total return earned on that cash through the year 2032. There are two such forecast opportunities coming in 2021 and in 2023. Individual 401(k) plan investors cannot afford to miss them, and should plan their schedule of cash contributions to their plans accordingly.

Thomas J. DruittFinancial Markets Research and AnalysisStonehenge Analytics