STOCK MARKET CORRECTIONS & SUBSEQUENT YEAR RETURNS I wanted to take a few moments to provide my insight on the stock market at this point in the year. The included chart is from one of our partners, First Trust and it illustrates the real and actual "look back at the S&P 500 over the past 40 years. It provides what happened to the market during the 1st, 2nd, and 3rd year "after" the market had a correction (dropping more than 10%), not unlike the market's current situation. It would be ideal for you Stirling Wealth Management to either print this chart and look at it while you are reading, or at least have it on your screen for reference. DOUGLAS STIRLING Stock Market Corrections & Subsequent Year Returns S&P 500 INDEX PRICE RETURNS 1, 2 & 3 YEARS AFTER A MARKET CORRECTION -12.70% 12.47% 43.49% wwww First Trust 4 m AULA An u in in An an en G 400A An Inn AP A/N An 45% 00:0 20 in (cm) inn * BAY 44 A Um E ww un En 20 AN MYSA Un 201 SIR I want to draw your attention to the columns on the right side of the graph, and specifically to the column titled "One Year After". Over the last 40 years. there are only 3 occurrences where the stock market has not been higher a year from its correction date. If you glance at the lower right corner of the chart, you will see that nearly 91% of the time the market was higher a year later, with the average return of around 25%. Another way to look at this is if you just found $10,000 today on the sidewalk and decided to invest into the S&P 500 today, historically speaking, you would have had a 91% chance that the $10,000 would be higher a year later with an average return of just under 25%. Now obviously, history can't guarantee what the markets will do over the next 12 months, but investors have 3 choices; you can buy into the market, sell out of the market, or continue to hold. Buying or holding strategies will benefit if the market makes a rebound over the next few months, however we recognize each client's needs and perspectives are unique. Joe, Wally, and I welcome the opportunity to hear your thoughts and concerns and ask that you call the office if you wish to discuss further. It's important to learn and abide by history and those with a proven ability to navigate volatile markets. I am providing a few quotes from some of the most successful investors and their perspectives. "Buy when everyone else is selling, and hold until everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investing." - J. Paul Getty "A lot of people with high IQs are terrible investors because they've got terrible temperaments. You need to keep raw irrational emotion under control." - Charles Munger, Berkshire Hathaway "A market downturn doesn't bother us. It is an opportunity to increase our ownership of great companies with great management at good prices." - Warren Buffet "The stock market is a device to transfer money from the impatient to the patient" - Warren Buffett "The investor's chief problem-and his worst enemy-is likely to be himself. In the end, how your investments behave is much less important than how you behave." - Benjamin Graham "For more money has been lost by investors preparing for corrections or trying to anticipate corrections than has ever been lost in the corrections themselves." - Peter Lynch Stirling Wealth Management was founded on a simple belief that everyone's economic and life situation is unique. We keep that simple principle at the forefront when creating tailored financial plans for our clients. As veteran Financial Advisors, we have vast experience researching the marketplace and advising our clients on the products and services that best meet their needs. We are dedicated to learning. about your personal goals, and together we will use that information to build a solid financial plan focused on your specific needs. In the photo, left to right Joe Kennedy (Financial Advisor), Douglas W. Stirling (EVP/Wealth Management, Financial Advisor). Wally Danforth (VP/Wealth Management, Financial Advisor) STIRLING WEALTH MANAGEMENT at Janney Montgomery Scott LLC Janney STIRLING WEALTH MANAGEMENT AT JANNEY MONTGOMERY SCOTT LLC 2200 Georgetowne Drive, Suite 400, Sewickley, PA 15143 www.stirlingwealthmanagement.com 1 724.934.2953 in JANNEY MONTGOMERY SCOTT LLC MEMBER NYSE, FINRA SIPC REF 8299901022 STOCK MARKET CORRECTIONS & SUBSEQUENT YEAR RETURNS I wanted to take a few moments to provide my insight on the stock market at this point in the year . The included chart is from one of our partners , First Trust and it illustrates the real and actual " look back at the S & P 500 over the past 40 years . It provides what happened to the market during the 1st , 2nd , and 3rd year " after " the market had a correction ( dropping more than 10 % ) , not unlike the market's current situation . It would be ideal for you Stirling Wealth Management to either print this chart and look at it while you are reading , or at least have it on your screen for reference . DOUGLAS STIRLING Stock Market Corrections & Subsequent Year Returns S & P 500 INDEX PRICE RETURNS 1 , 2 & 3 YEARS AFTER A MARKET CORRECTION -12.70 % 12.47 % 43.49 % wwww First Trust 4 m AULA An u in in An an en G 400A An Inn AP A / N An 45 % 00 : 0 20 in ( cm ) inn * BAY 44 A Um E ww un En 20 AN MYSA Un 201 SIR I want to draw your attention to the columns on the right side of the graph , and specifically to the column titled " One Year After " . Over the last 40 years . there are only 3 occurrences where the stock market has not been higher a year from its correction date . If you glance at the lower right corner of the chart , you will see that nearly 91 % of the time the market was higher a year later , with the average return of around 25 % . Another way to look at this is if you just found $ 10,000 today on the sidewalk and decided to invest into the S & P 500 today , historically speaking , you would have had a 91 % chance that the $ 10,000 would be higher a year later with an average return of just under 25 % . Now obviously , history can't guarantee what the markets will do over the next 12 months , but investors have 3 choices ; you can buy into the market , sell out of the market , or continue to hold . Buying or holding strategies will benefit if the market makes a rebound over the next few months , however we recognize each client's needs and perspectives are unique . Joe , Wally , and I welcome the opportunity to hear your thoughts and concerns and ask that you call the office if you wish to discuss further . It's important to learn and abide by history and those with a proven ability to navigate volatile markets . I am providing a few quotes from some of the most successful investors and their perspectives . " Buy when everyone else is selling , and hold until everyone else is buying . This is not merely a catchy slogan . It is the very essence of successful investing . " - J. Paul Getty " A lot of people with high IQs are terrible investors because they've got terrible temperaments . You need to keep raw irrational emotion under control . " - Charles Munger , Berkshire Hathaway " A market downturn doesn't bother us . It is an opportunity to increase our ownership of great companies with great management at good prices . " - Warren Buffet " The stock market is a device to transfer money from the impatient to the patient " - Warren Buffett " The investor's chief problem - and his worst enemy - is likely to be himself . In the end , how your investments behave is much less important than how you behave . " - Benjamin Graham " For more money has been lost by investors preparing for corrections or trying to anticipate corrections than has ever been lost in the corrections themselves . " - Peter Lynch Stirling Wealth Management was founded on a simple belief that everyone's economic and life situation is unique . We keep that simple principle at the forefront when creating tailored financial plans for our clients . As veteran Financial Advisors , we have vast experience researching the marketplace and advising our clients on the products and services that best meet their needs . We are dedicated to learning . about your personal goals , and together we will use that information to build a solid financial plan focused on your specific needs . In the photo , left to right Joe Kennedy ( Financial Advisor ) , Douglas W. Stirling ( EVP / Wealth Management , Financial Advisor ) . Wally Danforth ( VP / Wealth Management , Financial Advisor ) STIRLING WEALTH MANAGEMENT at Janney Montgomery Scott LLC Janney STIRLING WEALTH MANAGEMENT AT JANNEY MONTGOMERY SCOTT LLC 2200 Georgetowne Drive , Suite 400 , Sewickley , PA 15143 www.stirlingwealthmanagement.com 1 724.934.2953 in JANNEY MONTGOMERY SCOTT LLC MEMBER NYSE , FINRA SIPC REF 8299901022