--- title: The 2016 Outlook: 3 Important Issues description: What does the economic future hold? CIO Brad McMillan picks the top three issues that could affect the 2016 outlook. image: https://blog.commonwealth.com/hs-fs/file-912690335-jpg/Images_IMO_Blog/Spring_2014/USeconomy_3.jpg --- [![The Independent Market Observer](https://blog.commonwealth.com/hubfs/IMO-Title-1.png "The Independent Market Observer")](https://blog.commonwealth.com/independent-market-observer) [![Commonwealth Financial Network](https://blog.commonwealth.com/hubfs/lockup_citron-1.png "Commonwealth Financial Network")](https://www.commonwealth.com/) - [Home](https://blog.commonwealth.com/independent-market-observer) - [About](https://learn.commonwealth.com/about/) ### ![print this page](https://blog.commonwealth.com/hs-fs/file-1376458285-gif/images/print.gif)Print # [The 2016 Outlook: 3 Important Issues](https://blog.commonwealth.com/independent-market-observer/the-2016-outlook-3-important-issues) Posted by [Brad McMillan, CFA®, CFP®](https://blog.commonwealth.com/independent-market-observer/author/brad-mcmillan-cfa-caia-mai) Find me on: [LinkedIn](https://www.linkedin.com/in/bradmcmillancfa) [Twitter](https://x.com/BradMcMillanCFA) This entry was posted on Nov 3, 2015, 2:19:49 PM and tagged [Commentary](https://blog.commonwealth.com/independent-market-observer/topic/commentary) [Leave a comment](https://blog.commonwealth.com/independent-market-observer/the-2016-outlook-3-important-issues#comments-listing) ![2016 outlook](https://blog.commonwealth.com/hs-fs/file-912690335-jpg/Images_IMO_Blog/Spring_2014/USeconomy_3.jpg?width=260&height=260&name=USeconomy_3.jpg "2016 outlook")I’m working on my 2016 outlook right now—yes, a couple of months before it actually gets here—and am struggling to focus on what will be most important. Developing an idea about the future requires first identifying the most important issues, then making some decisions about how they are likely to evolve, and finally trying to tie them all together. For 2016, so far, **the important issues are the U.S. consumer, Chinese growth, and energy prices**. There are, of course, many other things that have to be considered, but these are three of the most important to the eventual outcome. ##### 1) The U.S. consumer “No one ever lost money betting on the American consumer” is a quote you used to hear a good deal more than you do now, but I would argue it’s still appropriate. Consumer spending continues to grow; the difference this time around is that people are limiting their spending to slightly less than their incomes, if you can imagine! Much of the angst over slow economic growth has been based on this simple fact, but personally I think it’s a good thing. **What could this mean for 2016?** We can reasonably project continued spending growth at rates similar to those of 2015. You could make a good case for *faster* (higher wage growth, more jobs) and for *slower* (job slowdown, continued wage stagnation), so the best course is the middle. What you don’t see is a consumer-led recession, which is kind of a nice thing to rule out. I say this for three reasons: - **Consumer confidence has held up and remains at healthy levels**, despite all of the recent uncertainty and bad news. - **Consumers are actually demonstrating long-term confidence** by buying homes and cars—you have to be confident to assume that debt. - **Because consumers have so far been responsible, there are no internal factors that will pull them back.** It simply makes sense to assume that consumers will do at least as well next year as this year, with the prospect of a pleasant surprise. ##### 2) Chinese growth China’s demand for raw materials has driven emerging economies around the world. [Chinese growth](https://blog.commonwealth.com/independent-market-observer/china-s-role-in-the-u.s.-market-correction) has also, for the first time, been the driver of the postcrisis recovery. Although the U.S. is now assuming that role, China will remain important. At the end of 2015, Chinese growth looks to be under threat, but the government is responding with policy measures that should support existing growth levels. **The question for 2016, then, is not whether growth will recover to previous levels—it won’t—but whether it will fall further.** Based on those policy changes, it seems unlikely that China’s government will allow this to happen. Here in the U.S., we’re not all that exposed to China. So, the real question for us is whether it will implode to a degree that would affect us, and the answer looks to be “no.” ##### 3) Energy prices To a large extent, the current recovery is based on lower oil prices. **So, whether they will rise in 2016 is an important question.** I believe they’ll remain in the $40 to $60 per barrel range through next year, constrained by the fact that supplies are increasing, costs are decreasing, and demand is growing slowly. There simply is not the excess of demand over supply that would allow prices to rise; if there were, U.S. production can be brought on line to meet the excess demand quickly and cheaply. The U.S. is now the price setter for oil, which will dramatically limit any damage from higher prices. ##### The big picture Looking at all three of these factors, the big picture is for continued slow growth but with an upside possible, and maybe even likely. Considering where we are coming from, this is not a bad big picture at all. Now I just need to fill in the details.   [![Subscribe to the Independent Market Observer](https://no-cache.hubspot.com/cta/default/295024/3974018f-04fe-4bdc-bed0-7915635291d5.png)](http://cta-redirect.hubspot.com/cta/redirect/295024/3974018f-04fe-4bdc-bed0-7915635291d5) - [Tweet](https://twitter.com/share) ### Subscribe via Email ![TMO_IMO_615x408_sidebar](https://blog.commonwealth.com/hs-fs/hubfs/TMO_IMO_615x408_sidebar.png?width=1033&height=686&name=TMO_IMO_615x408_sidebar.png "TMO_IMO_615x408_sidebar") [Episode 20](https://vimeo.com/1201911815/0f4f028be9?share=copy&fl=sv&fe=ci) June 17, 2026 [Episode 19](https://vimeo.com/1191658257/1b43ce84dd?share=copy&fl=sv&fe=ci) May 13, 2026 [Episode 18](https://vimeo.com/1183174918/e227cf7d80?share=copy&fl=sv&fe=ci) April 15, 2026 [Episode 17](https://vimeo.com/1174554734/636f0f7aba?share=copy&fl=sv&fe=ci) March 18, 2026 [Episode 16](https://vimeo.com/1163757312/bc2f802d74?share=copy&fl=sv&fe=ci) February 11, 2026 [More](https://learn.commonwealth.com/monthly-media-placements) [![Insights_CTA_IMO_233x400-1](https://no-cache.hubspot.com/cta/default/295024/interactive-187935228457.png)](https://blog.commonwealth.com/hs/cta/wi/redirect?encryptedPayload=AVxigLInquznZt%2FKwc7Qh6unlhgShtHwgbFgCDWEcJEc0RRKQxADUWvk4MMV8juVOusKfQeddjQpm6uqAWRHKWlM1qYXBCg8AfoyoWFUJIB0o2WLlPZ6J%2BPJH%2FYLZ8AcPNG5bzK1k1xuCdmof%2BhfQp%2B0Lc55SrE%2B3qm%2FjpsYs0x8aK5o8c4MF4nwDcQ%3D&webInteractiveContentId=187935228457&portalId=295024) ### Hot Topics Select Category Ask Brad Commentary Economic Risk Factor Updates Economics Lessons Market Thoughts Videos In the News Investing Market Updates On My Bookshelf Politics and the Economy [![New Call-to-action](https://no-cache.hubspot.com/cta/default/295024/5f46d9ce-4d40-495c-a126-d4502b647bbf.png)](https://cta-redirect.hubspot.com/cta/redirect/295024/5f46d9ce-4d40-495c-a126-d4502b647bbf) ### Archives - [July 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/07) - [June 2026 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2026/06) - [May 2026 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2026/05) - [April 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/04) - [March 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/03) - [February 2026 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2026/02) - [January 2026 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2026/01) - [December 2025 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2025/12) - [November 2025 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2025/11) - [October 2025 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2025/10) - [September 2025 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2025/09) - [August 2025 (3)](https://blog.commonwealth.com/independent-market-observer/archive/2025/08) - [July 2025 (4)](https://blog.commonwealth.com/independent-market-observer/archive/2025/07) - [June 2025 (5)](https://blog.commonwealth.com/independent-market-observer/archive/2025/06) - [May 2025 (5)](https://blog.commonwealth.com/independent-market-observer/archive/2025/05) - [April 2025 (7)](https://blog.commonwealth.com/independent-market-observer/archive/2025/04) - [March 2025 (5)](https://blog.commonwealth.com/independent-market-observer/archive/2025/03) - [February 2025 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2025/02) - [January 2025 (1)](https://blog.commonwealth.com/independent-market-observer/archive/2025/01) - [December 2024 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2024/12) - [November 2024 (2)](https://blog.commonwealth.com/independent-market-observer/archive/2024/11) - [October 2024 (9)](https://blog.commonwealth.com/independent-market-observer/archive/2024/10) - [September 2024 (12)](https://blog.commonwealth.com/independent-market-observer/archive/2024/09) - [August 2024 (11)](https://blog.commonwealth.com/independent-market-observer/archive/2024/08) - [July 2024 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2024/07) - [June 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/06) - [May 2024 (11)](https://blog.commonwealth.com/independent-market-observer/archive/2024/05) - [April 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/04) - [March 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/03) - [February 2024 (11)](https://blog.commonwealth.com/independent-market-observer/archive/2024/02) - [January 2024 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2024/01) - [December 2023 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2023/12) - [November 2023 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2023/11) - [October 2023 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2023/10) - [September 2023 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2023/09) - [August 2023 (16)](https://blog.commonwealth.com/independent-market-observer/archive/2023/08) - [July 2023 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2023/07) - [June 2023 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2023/06) - [May 2023 (16)](https://blog.commonwealth.com/independent-market-observer/archive/2023/05) - [April 2023 (13)](https://blog.commonwealth.com/independent-market-observer/archive/2023/04) - [March 2023 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2023/03) - [February 2023 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2023/02) - [January 2023 (16)](https://blog.commonwealth.com/independent-market-observer/archive/2023/01) - [December 2022 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2022/12) - [November 2022 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2022/11) - [October 2022 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2022/10) - [September 2022 (14)](https://blog.commonwealth.com/independent-market-observer/archive/2022/09) - [August 2022 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2022/08) - [July 2022 (18)](https://blog.commonwealth.com/independent-market-observer/archive/2022/07) - [June 2022 (15)](https://blog.commonwealth.com/independent-market-observer/archive/2022/06) - [May 2022 (17)](https://blog.commonwealth.com/independent-market-observer/archive/2022/05) - [April 2022 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2022/04) - [March 2022 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2022/03) - [February 2022 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2022/02) - [January 2022 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2022/01) - [December 2021 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2021/12) - [November 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/11) - [October 2021 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2021/10) - [September 2021 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2021/09) - [August 2021 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2021/08) - [July 2021 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2021/07) - [June 2021 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2021/06) - [May 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/05) - [April 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/04) - [March 2021 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2021/03) - [February 2021 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2021/02) - [January 2021 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2021/01) - [December 2020 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2020/12) - [November 2020 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2020/11) - [October 2020 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2020/10) - [September 2020 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2020/09) - [August 2020 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2020/08) - [July 2020 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2020/07) - [June 2020 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2020/06) - [May 2020 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2020/05) - [April 2020 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2020/04) - [March 2020 (27)](https://blog.commonwealth.com/independent-market-observer/archive/2020/03) - [February 2020 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2020/02) - [January 2020 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2020/01) - [December 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/12) - [November 2019 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2019/11) - [October 2019 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2019/10) - [September 2019 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2019/09) - [August 2019 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2019/08) - [July 2019 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2019/07) - [June 2019 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2019/06) - [May 2019 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2019/05) - [April 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/04) - [March 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/03) - [February 2019 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2019/02) - [January 2019 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2019/01) - [December 2018 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2018/12) - [November 2018 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2018/11) - [October 2018 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2018/10) - [September 2018 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2018/09) - [August 2018 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2018/08) - [July 2018 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2018/07) - [June 2018 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2018/06) - [May 2018 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2018/05) - [April 2018 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2018/04) - [March 2018 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2018/03) - [February 2018 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2018/02) - [January 2018 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2018/01) - [December 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/12) - [November 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/11) - [October 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/10) - [September 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/09) - [August 2017 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2017/08) - [July 2017 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2017/07) - [June 2017 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2017/06) - [May 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/05) - [April 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/04) - [March 2017 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2017/03) - [February 2017 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2017/02) - [January 2017 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2017/01) - [December 2016 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2016/12) - [November 2016 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2016/11) - [October 2016 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2016/10) - [September 2016 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2016/09) - [August 2016 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2016/08) - [July 2016 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2016/07) - [June 2016 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2016/06) - [May 2016 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2016/05) - [April 2016 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2016/04) - [March 2016 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2016/03) - [February 2016 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2016/02) - [January 2016 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2016/01) - [December 2015 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2015/12) - [November 2015 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2015/11) - [October 2015 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2015/10) - [September 2015 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2015/09) - [August 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/08) - [July 2015 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2015/07) - [June 2015 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2015/06) - [May 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/05) - [April 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/04) - [March 2015 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2015/03) - [February 2015 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2015/02) - [January 2015 (21)](https://blog.commonwealth.com/independent-market-observer/archive/2015/01) - [December 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/12) - [November 2014 (19)](https://blog.commonwealth.com/independent-market-observer/archive/2014/11) - [October 2014 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2014/10) - [September 2014 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2014/09) - [August 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/08) - [July 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/07) - [June 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/06) - [May 2014 (25)](https://blog.commonwealth.com/independent-market-observer/archive/2014/05) - [April 2014 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2014/04) - [March 2014 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2014/03) - [February 2014 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2014/02) - [January 2014 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2014/01) - [December 2013 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2013/12) - [November 2013 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2013/11) - [October 2013 (27)](https://blog.commonwealth.com/independent-market-observer/archive/2013/10) - [September 2013 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2013/09) - [August 2013 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2013/08) - [July 2013 (23)](https://blog.commonwealth.com/independent-market-observer/archive/2013/07) - [June 2013 (22)](https://blog.commonwealth.com/independent-market-observer/archive/2013/06) - [May 2013 (26)](https://blog.commonwealth.com/independent-market-observer/archive/2013/05) - [April 2013 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2013/04) - [March 2013 (24)](https://blog.commonwealth.com/independent-market-observer/archive/2013/03) - [February 2013 (20)](https://blog.commonwealth.com/independent-market-observer/archive/2013/02) - [January 2013 (30)](https://blog.commonwealth.com/independent-market-observer/archive/2013/01) - [December 2012 (34)](https://blog.commonwealth.com/independent-market-observer/archive/2012/12) - [November 2012 (39)](https://blog.commonwealth.com/independent-market-observer/archive/2012/11) - [October 2012 (42)](https://blog.commonwealth.com/independent-market-observer/archive/2012/10) - [September 2012 (36)](https://blog.commonwealth.com/independent-market-observer/archive/2012/09) - [August 2012 (30)](https://blog.commonwealth.com/independent-market-observer/archive/2012/08) - [July 2012 (31)](https://blog.commonwealth.com/independent-market-observer/archive/2012/07) - [June 2012 (18)](https://blog.commonwealth.com/independent-market-observer/archive/2012/06) see all ### Subscribe - [RSS](https://blog.commonwealth.com/independent-market-observer/rss.xml) ### Disclosure The information on this website is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation. Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets. The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. All indices are unmanaged and investors cannot invest directly in an index. The MSCI EAFE (Europe, Australia, Far East) Index is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of 21 developed market country indices. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The Russell 2000 is a market-capitalization weighted index, with dividends reinvested, that consists of the 2,000 smallest companies within the Russell 3000 Index. It is often used to track the performance of U.S. small market capitalization stocks. One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent. The VIX (CBOE Volatility Index) measures the market’s expectation of 30-day volatility across a wide range of S&P 500 options. The forward price-to-earnings (P/E) ratio divides the current share price of the index by its estimated future earnings. Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided on these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption by Commonwealth of any kind. You should consult with a financial advisor regarding your specific situation. Member [FINRA](http://www.FINRA.org), [SIPC](http://www.SIPC.org) Please review our [Terms of Use](https://www.commonwealth.com/terms-of-use).  Commonwealth Financial Network® ![](https://www.facebook.com/tr?id=1808440502705240&ev=PageView&noscript=1)