Economic Update Estate Planning Council of Birmingham January

Economic Update Estate Planning Council of Birmingham January 7 th, 2016 Rusty Yerkes Samford University Brock School of Business

Agenda • Economic Update • Samford University Update

Economic Update • Global Markets • US Economy • 2016?

DJIA -2. 2%

S&P 500 -. 7%

Nasdaq +5. 7%

• Americas • • • Brazil Bovespa -13. 3% Canada TSX -11. 1% Mexico IPC -. 39% S&P Midcap -3. 7% S&P Small Cap -3. 4% Russell 2000 -5. 7% • Asia • • • China Shanghai +9. 4% Japan Nikkei +9. 1 Hong Kong Hangseng -7. 2% India BSE Sensex -5. 0% Australia ASX 200 -2. 1% South Korea Kospi +2. 4% • Europe • • • UK FTSE 100 -4. 9% Spain i. BEX 35 -7. 2% Germany DAX +9. 6% France CAC 40 +8. 5% Italy FTSE MIB +12. 7% • Commodities • PHLX Gold/Silver -34. 1% • PHLX Oil Service -25. 2%

Where is the bottom for Oil Prices?

The Good: U. S. Auto Sales- 2015 record year

The Bad: High Yield Bonds Selloff (Energy Sector)

U. S. Treasury Yield Curve

U. S. Dollar Strengthens

Interest Rates & Estate Planning Implications • Intrafamily Loans • GRATs • QPRTs • CRATs Source: WSJ, Dec 23, 2015

Inflation Source: WSJ, Dec 17, 2015

Initial Claims for Unemployment Benefits

Unemployment Rate

Labor Force Participation Rate

Demographics

M&A Activity- 2015 Record Year

IPO Activity

What’s on the Horizon for 2016? • Election Year Uncertainty • Who are the nominees? Which party elected? Which candidate elected? • Federal Reserve Lift Off • Gradual? 1% in each of 16/17/18 Pause? Dollar strengthens? • Geopolitical • North Korea, Middle East-Saudi/Iran, ISIS • China’s Economy Slowiing? • 2 nd largest global economy ($10 T GDP vs $17 T US GDP)

What’s on the Horizon for 2016?

What’s on the Horizon for 2016? • Tax Reform?

Student Loan Market?

Fannie & Freddie -Here we go again?

Keeping things in perspective…. .

S&P 500 -Investing for the Long Term

Past Performance is no guarantee of future….

My predictions for 2016…. • Alabama wins the CFB Championship • Carolina Panthers (NFC) win the Superbowl • AFC Wins-Bear Market, NFC Wins-Bull Market • Accurate 32/48 or 67%

Samford University Overview/Update

Samford Facts & Figures • Founded: 1841 Marion, AL • Moved to Lakeshore campus from East Lake in 1958 • Enrollment: 5, 206 (3, 168 undergraduate, 2038 graduate/professional) • Students: 46 states, 32 countries • Student to faculty: 13: 1 • Faculty: 325 full time, 89% terminal degrees in their field • 10 Academic Schools • 47, 997 alumni • 158 academic majors, minors, concentrations • 17 NCAA Division I varsity teams, So. Con (Southern Conference) (Mercer, Davidson, Citadel, ETSU, Furman, UNCG, Chattanooga, VMI, WCU, Wofford) • Ranked 4 th in USNWR Southeast Regional University Category, #87 Nationally by The Economist

Acquired 600 University Park Pl Feb 2014 • Also known as the Daxko Building • 122, 000 sq ft Class A office space on 12 acres • 100% occupied, investment property • Directly across Lakeshore from main campus • Adjacent to Samford Track & Soccer Stadium

Acquired Southern Progress Campus Dec 2014 • 400, 000 sq ft class A office space, 28 acres • 1, 000 parking spaces • Time, Inc. sale/lease-back transaction • Will house new College of Health Sciences

Completed Construction of Cooney Hall August 2015 • New home of the Brock School of Business • 76, 623 sq ft • 562 undergraduate and 127 MBA/Macc students • Highlights include Regions Community Resource Room, Coca-Cola Student Commons, Dunn/Stifel Merchant Capital Portfolio Management Room, State of the Art Classrooms