In this Issue:
? After Second-Quarter Rebound, Lackluster U.S. Growth will Resume
? The Persistent Capital Spending Drag Will Continue
? Fed Policy On Hold
? Weak U.S. Economy Vulnerable to the Proliferation of Global Shocks

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Municipal Market Update - "Puerto Rico Municipal Market Update"
Although we are not investors in Puerto Rico municipals; the very size of its debt market ($72 billion) as well as the mounting financial and fiscal policy challenges the island faces today will have an impact on the broader Municipal market. The following overview sheds light on the more recent developments and puts in context the uncertainty of Puerto Rico’s financial stability. .
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Municipal Market Update - California Utilities
The California water utility universe is diverse both in size and scope, ranging from state agencies which provide statewide infrastructure to facilitate delivery and storage, to both regional and local entities which deliver it to intermediate or final customers. Many of these credits also operate electric utilities and issue bonds backed by both or either revenue stream. In addition, wastewater treatment facilities are sometimes funded by bonds backed solely by sewer fee revenue. Utility credits, in
general, have traditionally been considered very safe by the nature of their near monopoly status, essentiality of service, and ability to raise rates. In this context, water has been considered the marginally better credit as it is more essential, is less subject to competition, and has fewer impediments to raising rates. Bonds issued by the same agency backed solely by the electric revenue stream are usually rated one to two levels lower as a result.
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Smith Affiliated Capital 2015 ADV
- March 31, 2016

Smith Affiliated Capital
>- SBA Member 2015

"Black Swan Events"
- June, 2016

"Overstimulation Begets Exhaustion"
- May, 2016

"Commodities, Currency and Campaigns"
- April, 2016