Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 803 Table of Contents INTRODUCTION................................................................................................................................4 I. Investment Screening: Can we filter for productive companies?....................................................6 1. Introduction: Meditations on Productivity..........................................................................7 2 . What is Screening?...............................................................................................................7 3. ESG Screening: The Size of the Universe...........................................................................14 4. Hamilton Securities & US Pension Funds.........................................................................19 5. Reviewing SRI Mutual Funds and ETFs............................................................................21 6. The Solari Model...............................................................................................................22 7. Define “Real Stinkers”.......................................................................................................24 8. Investment Screening: Can We Filter for Productive Companies? ....................................18 9. Negative Total Economic Return: Examples By Industry Sector........................................19 10. Conclusion........................................................................................................................21 II. News Trends & Stories...................................................................................................................22 ECONOMY & FINANCIAL MARKETS...............................................................................23 GEOPOLITICS........................................................................................................................24 SCIENCE & TECHNOLOGY...............................................................................................25 THE BIG QUESTIONS....................................................................................................................26 An in-depth look at the News Trends & Stories..........................................................................27 PART ONE .............................................................................................................................27 PART TWO..........................................................................................................................................43 III. FINANCIAL MARKETS ROUNDUP.......................................................................................58 U.S. Dollar Index ....................................................................................................................59 Fixed Income /AGG (US Bond Aggregate), JNK (High Yield Bond ETF) ........................................ 60 IEF (5-7yr Treasury ETF), TLT (20 yr. + Treasury ETF) ................................................................... 61 Equities /North America SPX (S&P Large Cap), PKW (Buybacks)................................................62 SCHA (U.S. Small Caps), SCHM (U.S. Mid Caps), SCHX (U.S. Large Caps) ................................ 63 US Aerospace & Defense (ITA) ............................................................................................................ 63 Consumer Discretionary (XLY) ............................................................................................................ 64 Consumer Staples (XLP) ....................................................................................................................... 64 Industrial Select (XLI) ............................................................................................................................ 65 Health Care (XLV) ................................................................................................................................ 65 IBB (Biotech) ......................................................................................................................................... 66 ITB (U.S. Home Construction ............................................................................................................. 66 IYR (U.S. Real Estate).................................................................................................................67 U.S. Equities: 1-, 3-, 5-Year Sector Performance ......................................................................67 Motif Investing (Highest Earners).............................................................................................68 Motif Investing (Lowest Earners)..............................................................................................69 EFA (International Developed).................................................................................................70 Europe DAX (Germany)...........................................................................................................70 VGK (FTSE)........................................................................................................................... 71 VGK(FTSE), EWU (UK), SPY (S&P).....................................................................................71 EUFN (European Financials), KBE (US Financials).................................................................72 European Financials: DB, RBS, BCS........................................................................................72 ASIA EEM (Emerging Markets)...............................................................................................73 FXI (China Large Caps) ...........................................................................................................73 China Small Cap (HAO)..........................................................................................................74 PIN (India) ..............................................................................................................................74 WAFMX (Frontier Markets).....................................................................................................75 Commodities OIL (Crude Oil) ................................................................................................75 RSX (Russia), OIL (Crude Oil)................................................................................................76 GLD (Gold), SLV (Silver)........................................................................................................76 GDX, GDXJ............................................................................................................................77 CRB (Commodities Index).......................................................................................................77 YTD Commodities Performance..............................................................................................78 Baltic Dry Index.......................................................................................................................79 Disclaimer: Nothing on the Solari Report should be taken as individual investment advice. Anyone seeking investment advice for his or her per- sonal financial situation is advised to seek out a qualified advisor or advisors and provide as much information as possible to the advisor in order that such advisor can take into account all relevant circumstances, objectives, and risks before rendering an opinion as to the appropriate investment strategy. NOTE: For additional mate- rial available in the online version of this Wrap Up, visit the www.Solari.com website and use the search function to locate the items.