2020 Q2 In Review - Integrity Wealth Advisors, Ventura, CA

Q2
2020
IN REVIEW

TOTAL RETURN Q2 + NEWSWORTHY EVENTS
April 2 – COVID-19 pandemic:
The number of confirmed
cases of COVID-19 passes 1
million worldwide.
26%
24%
22%
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
April 3 – Nonfarm payrolls
in March fell by 701,000
and the unemployment rate
rose to 4.4%.
S&P 500 TOTAL RETURN
April 20 – Oil prices
reach a record low,
with some West Texas
Intermediate
contracts falling
into negative values.
May 8 – Worst
jobs report ever, US
economy lost 20.5
million jobs, bringing
the unemployment rate
to 14.7%.
May 26 – The killing of
George Floyd sparked
protests across hundreds
of cities in the United States
and around the world.
May 9 – Several Chinese
and Indian soldiers are
injured in a cross-border
clash.
MSCI ACWI EX USA TOTAL RETURN BARCLAYS US AGGREGATE TOTAL RETURN
June 5th – May sees biggest
jobs increase ever of 2.5 million
as economy starts to recover
from coronavirus, unemployment
rate dropped to 13.3%.
June 30 – China
passes the
controversial Hong
Kong national
security law,
allowing China
to crack down
on opposition to
Beijing at home or
abroad.
20.5%
16.3%
2.89%
-6%
April, 2020
May, 2020
June, 2020
12%
S&P 500 TOTAL RETURN
MSCI ACWI EX USA TOTAL RETURN
BARCLAYS US AGGREGATE TOTAL RETURN
As of close 6/30/2020
11%
10.42%

IT’S OFFICIAL...
2020
Q2
IN REVIEW
July 14, 2020
The National Bureau of Economic Research has officially declared a recession. It’s Business Cycle Dating Committee has confirmed that the expansion that
began in June 2009 ended in February 2020. This latest expansion lasted 128 months and was the longest in U.S. history, right behind the previous record
of 120 months from March of 1991 to March of 2001. First Quarter GDP contracted by 5%, the largest contraction since the great recession. The overall
economic downturn caused by COVID-19 is the sharpest we have seen since the Great Depression, but it also may likely be one of the shortest we have ever
seen.
What about the pick-up in new cases which is causing governments to reverse prior moves to re-open bars and restaurants? On May 31st, 352,947 people
went through TSA airport security checks. On June 22nd, as reports of a surge in new cases started to appear, TSA counted 607,540 passengers. If these
re-closures are slowing activity, we can’t see it in the TSA data. In other words, while many seem to think that a surge in new cases and some reversals in
openings will do the same kind of damage to economic activity that we saw in March and April, the data does not show it yet. We put the odds of another
nation-wide economic shutdown very low and we expect economic data to continue to improve in the weeks and months ahead.
ECONOMIC CHARTS & NOTES
CONSUMER SENTIMENT In April, consumer sentiment reached its lowest
level in nearly a decade but rebounded in May as relief checks and discounted
prices boosted purchasing attitudes. Retail sales posted their biggest monthly
increase ever in May.
EMPLOYMENT In April, the U.S. unemployment rate spiked to 14.7%
before improving to 13.3% in May as the economy began to reopen. Nonfarm
payrolls recorded their largest increase in history rising by 2.5 million in May
as furloughed workers in the hospitality, leisure, and other industries started
to return to work.
3Mo Moving Avg Yr/Yr %
Consumer Sentiment
Unemployment Rate
NonFarm Payroll
6%
100
16%
2200
3Mo Moving Avg Yr/Yr %
4%
2%
0%
-2%
-4%
-6%
95
90
85
80
75
Consumer Sentiment
Unemployment Rate %
14%
12%
10%
8%
6%
4%
-825
-3850
-6875
-9900
-12925
-15950
-18975
Monthly Employment Change
-8%
Jan '17
Jul '17
Jan '18
Jul '18
Jan '19
Jul ' 19
Jan '20
70
2%
Jan ' 16
Jul '16
Jan '17
Jul '17
Jan '18
Jul '18
Jan '19
Jul '19
Jan '20
-22000

ECONOMIC CHARTS & NOTES
WAGES & SALARIES Wages and salaries rose at record rates in the second
quarter reflecting a high portion of job losses from lower paying occupations.
CONSUMER SPENDING U.S. personal income spiked by a record 14% yearover-year
in April due to federal economic recovery programs and increased 8%
in May. Consumer spending rebounced sharply in May as stores and restaurants
began to open their doors.
Earnings (Private) Y/Y % Change
Earnings Y/Y % Change
Consumption
Disposable Income
8
15
7
10
Quarterly Year-over-Year
6
5
4
3
2
Year-over-year
5
0
-5
-10
-15
1
'08
'09
'10
'11
'12
'13
'14
'15
'16
'17
'18
'19
'20
-20
Jul '16
Jan '17
Jul '17
Jan '18
Jul '18
Jan '19
Jul '19
Jan '20
JOB OPENINGS & HIRES Retail hiring and job openings slowed considerably
at the start of the second quarter with many non-essential businesses suspending
operations. The employment data improved in May as retailers began to reopen.
CONSUMER PRICE INDEX (CPI) For the first time ever the consumer
price index fell for the third straight month in May amid closures and muted
demand for non-essential goods due to the pandemic-led recession. Inflation
was also weak excluding food and energy prices.
Retail Openings
Retail Hires
CPI Less Food/Energy
CPI All
1200
3.0
1000
2.5
Amount in Thousands
800
600
400
200
Y/Y %
2.0
1.5
1.0
0.5
0
Jan '18
Jul '18
Jan '19
Jul '19
Jan '20
0.0
Jul '16
Jan '17
Jul '17
Jan '18
Jul '18
Jan '19
Jul '19
Jan '20

LONGER-TERM COVID-19
IMPLICATIONS...
PEOPLE ARE
STEADILY RETURNING
TO THE SKIES
2020
Q2
IN REVIEW
Low
interest rates
for longer
Less
globalization
More
government debt
and bigger share
of government in
the economy
Higher
inflation…
eventually
Pressure
on profit
margins
SOURCE: TSA, U.S. Global Investors. As of June 28
US LEADING INDEX Following a sharp decline in previous months, the
U.S. Leading Economic Index improved in May. This was largely due to lower
unemployment insurance claims as economic activity rebounded.
GDP The U.S. economy contracted 5% in the first quarter due to the onset
of the coronavirus pandemic. A sharp drop in GDP is expected for the second
quarter followed by a healthy rebound in the second half of the year.
Leading Index for the United States
GDP
4%
4%
2%
0%
3%
2%
1%
-2%
-4%
% Growth
0%
-1%
-2%
-6%
-3%
-8%
2015
2016
2017
2018
2019 2020
-4%
-5%
Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Q2
2015
2016
2017
2018 2019 2020

INVESTMENT
MANAGEMENT
PHILOSOPHY
The complex, ever-changing investment world of today
requires an investment process that is overseen by a team
of experienced investment professionals. Global capital
markets present investors with a host of challenges due to
the combination of an overwhelming amount of information
to analyze and the endless supply of conflicting opinions and
narratives surrounding financial markets. The time and expertise
required to perform in-depth investment research and to make
timely and informed portfolio management decisions requires
both a clear investment process and an experienced investment
team to implement the process.
An old adage states that there is accomplishment through
many advisors. We agree and embrace a variety of investment
perspectives through our investment committee. Our investment
philosophy is well grounded in global macro-economic analysis.
Investment ideas are carefully vetted through a process which
incorporates the diverse range of investment backgrounds
within our firm. This process of multifaceted analysis ensures
that only the strongest investment ideas survive. We are
committed to striking the right balance between risk and
return through managing global, multi-asset class investment
portfolios.
INDEPENDENCE &
CLIENT FOCUS
DIVERSIFICATION
TOP-DOWN, THEMATIC
APPROACH
PERFORMANCE WITH
LIQUIDITY
VARIED INVESTMENT
PERSPECTIVES
OPTIMIZATION OF
EXPENSES AND TAXES
ASSESSMENT OF GLOBAL
ECONOMIC & INVESTMENT
ENVIRONMENT
THE INVESTMENT PROCESS
ASSESS & ANALYZE
THEMES
RESEARCH INVESTMENT
VEHICLES TO FIND
EFFECTIVE IMPLEMENTATION
Q3 INVESTMENT
COMMITTEE
GUEST SPEAKER
Andrew Opdyke, CFA – Andrew holds an
MBA from Northwestern University, and a
BA in Business and Economics from Hope
College.
IDENTIFY
OPPORTUNITIES
STRATEGIC ASSET
ALLOCATION -
Geographies, Sectors,
Capitalizations
INVESTMENT SELECTION -
Open/Closed End Funds, ETFs,
Stocks & Bonds
Talley Léger, Senior Investment Strategist
– Talley earned an MS degree in financial
economics from Boston University.

INVESTMENT
COMMITTEE
2020
Q2
IN REVIEW
The Investment Committee meets formally each quarter, and more frequently if market conditions
warrant, to discuss the state of the global economy and capital markets and to assess the current
asset allocation and positioning of our portfolios. There’s an art to striking the right balance between risk and return, pursuing
that symmetry is the core of our investment philosophy. We are fiduciaries and have our interests aligned with our clients as
we invest alongside them. Contact us at info@wagnerfinancial.com with any questions or concerns.
STEPHEN WAGNER
Investment Advisor,
CFP ® , CPFA
VICTORIA BREEN
Investment Advisor &
Financial Planner
MARTHA LAFF
Investment Advisor,
ChFC ® , CLU ® , CRPC ®
ANDREW MURTHA
Financial Analyst,
MBA
BOB CHEATHAM
Financial Planner,
CRPS®, MA
35+ Years Experience*
40+ Years Experience*
30+ Years Experience*
20+ Years Experience*
15+ Years Experience*
MARGARET MARAPAO
Investment Advisor,
CFP ®
CHRISTOPHER WAGNER
Investment Advisor,
CPFA
LAINE MILLER
Investment Advisor &
Financial Planner
DOUG ECKER
Retirement Plan
Specialist
GRACE RIVERA
Investment Advisor &
Financial Planner
* Financial services experience. Investment Advisory Services are offered through investment advisor representatives of Integrity Wealth Advisors, a Federally Registered Investment Advisor.
THOUGHTFUL
INDEPENDENT
FIDUCIARIES
Wagner Financial has been committed to helping individuals, families,
and businesses grow, preserve, and distribute wealth since 1987.
196 S Fir Street, Suite 140, Ventura, CA 93001
www.wagnerfinancial.com | (805) 339-0760

2020
Q2
IN REVIEW
PUTTING THINGS INTO PERSPECTIVE
The M2 measure of money (a measure of the money supply that includes cash, checking deposits, and easily convertible near money) is up 25%
year over year, one of the fastest paces we have ever seen. With this deluge of new money and the improvement in economic data we feel equity
markets should continue to rise.
However, many continue to feel as if the world is falling apart, and we are certainly dealing with many issues that are causing uncertainty.
However, it’s important to remember history. In the Civil War, the US lost 620,000 men, 2% of the population, the equivalent of more than 6 million
people today. World War I, World War II and the Spanish Flu were devastating. Yet, in every case, the United States continued to prosper.
Many believe that this time will be different, but we think that humans are resilient and that things will get back to normal. It may not happen
straightaway, but we believe it will happen. Competition between states, businesses and everyday people to grow and enjoy life will push
everyone forward. Just like after 9/11, people will fly again. They already are. They will go to restaurants again, and sporting events and theaters.
But it will take time.
We believe the first few months will initially look like a V recovery, but then things will grow more slowly unless we get a widely distributed
vaccine. We may not see 4% or lower unemployment rates again until late 2022 or 2023, possibly even longer. But day after day, week after week,
month after month, advancement will be made. We remain hopeful. We have history on our side.
Record levels of stimulus, sustained low interest rates and ongoing low inflation create a supportive environment for stock market returns
going forward. We will continue to act in the best interets of our clients, serving as fiduciaries. Please feel free to reach out to any of us with any
questions or concerns.
Warm Regards,
Stephen H. Wagner, CFP ®
Investment Committee Chair
info@wagnerfinancial.com
"We remain hopeful.
We have history on our side."

THE IMPACT OF
SOUND FINANCIAL
PLANNING
Recent Vanguard research 1 shows that an experienced
wealth management team not only adds peace of mind,
but also may add about 3 percentage points of value in
net portfolio returns over time. What does this mean? Your
team has the ability and the time to evaluate your portfolio
investments, meet with you to discuss objectives, and
help get you through tough markets. All of these factored
together potentially add value to your net returns (returns
after taxes and fees) over time. But the most interesting part
of this research is that it shows that financial planning and
financial coaching contributed to the greater majority of the
added net 3% in net portfolio returns.
It’s important to realize how valuable making sound financial
planning decisions are, and the value that is added by your
financial planning team. As investors, our emotions can be
our worst enemy, especially when the markets are volatile,
and guidance from a “behavioral coach” can save us from
panic-selling and abandoning long-term financial plans.
Numerous studies demonstrate that advisors can have a
huge impact on investor finances, but it’s hard to say if these
findings have been recognized and understood by everyday
investors.
VICKI'S VIEW
If you’re facing unemployment or concerned
about the possibility of upcoming layoffs, there
are some small, proactive steps you can take now
to help make this difficult time more manageable.
Build Your Network. It’s estimated that over 80%
of open positions are filled through networking.
The easiest time to build your network is while
you are still employed. Websites like LinkedIn are
a great way to connect with current coworkers
now so you can easily maintain contact in
the future. Look into joining professional
organizations in your field as well. Many of these
organizations offer networking events, online job
postings, and learning opportunities.
Update Your Resume. If you’ve been at the same
job for years, it’s likely that you haven’t updated
your resume in quite some time. Take inventory
of your current job responsibilities as well as
major projects or accomplishments. If you can
quantify your successes with metrics, all the
better! Once you’re done updating your resume,
ask a few people who you know well to review
and provide input on whether you’ve missed
anything.
FACING POSSIBLE UNEMPLOYMENT?
TAKE THESE STEPS TO PREPARE
certain qualification requirements. You may
be able to purchase private insurance through
the Marketplace, or qualify for Medicaid.3 Start
exploring what’s available and what makes the
most sense for your unique situation.
Calculate Your Unemployment Benefits.
Many factors go into unemployment benefit
calculations, including the state you live in, how
long you were employed, and your salary. Do a
quick search online to find out the process for
applying in your state, and how much you can
potentially collect. This way, if you do get laid
off, you will have all the information you need to
submit a claim immediately.
Cut Nonessential Expenses. If you don’t have
an emergency savings account started, now is
the time to start! Do an audit of your monthly
expenses and see where you can cut back. If
you’re not actively using a service but still paying
for it, consider cancelling. If you’re locked into a
contract with your subscription services, weigh
the short-term cost of an early termination fee
versus continuing to pay monthly for a service
you may not be able to afford.
DREAM.
PLAN.
ENJOY.
Understand Your Insurance Options. If
you’re facing the possibility of losing health
insurance, it’s important to do some research
and understand what your options are. The
Consolidated Omnibus Budget Reconciliation
Act, or COBRA, allows you to continue your group
benefits for a limited amount of time. You’re
responsible for paying out of pocket for this
continuation of coverage, and you must meet
Stay Positive. Facing unemployment can be
extremely stressful. Try to stay optimistic about
your future and the opportunities that await
you. Have you always wanted to try something
new? Is to, this may be a great time to transition
to a new career. If you’re concerned about your
financial situation and want to ensure you’re
prepared for the worst, please reach out. I’m here
to help.

The risks to your wealth aren’t only in the financial markets.
The wealthier you become, the more liability protection matters. We live in a litigious world, one in which even friends
and neighbors can be convinced to see opportunity in the wake of misfortune.
LAINE'S LEDGER
DO YOU HAVE LIABILITY
PROTECTION?
A (larger) umbrella liability policy may be an excellent idea. Could you afford a six-figure drawdown of your personal
assets to settle a lawsuit? Ideally, you have umbrella liability coverage with a limit that equals or exceeds your net
worth. The premiums are reasonable: $1 million of coverage commonly costs $150 to $300 per year, according to
the Insurance Information Institute. Premiums may then rise only incrementally for larger policies. You may want to
consider both general and professional liability coverage, the latter of which protects a business against damage done
by its services or products. Consider creating an LLC or S corp. If you own rental property, setting up a limited liability
or S corporation can be a wise move. If tenants want to sue for any reason, they will be suing the corporate entity
rather than you. Your other personal assets will be shielded from their claims.
What degree of liability protection do you have now? Many high net worth professionals and business owners are
inadequately covered against “predators and creditors.” This is worth a conversation. Real wealth demands an
advanced asset protection strategy.
CHRIS'S CORNER
BEYOND RETIREMENT:
WHAT ABOUT YOUR
OTHER GOALS?
Let's say that at the age of 25, you earned $35,000.
If your salary increased at the average historical
rate, you'd have earned nearly $2 million in total by
the time you were 65. That might sound like a lot --
until you begin thinking about all the financial goals
you'll need to juggle in a lifetime, including buying
a home and paying for your child's education, while
funding your own retirement.
If managed wisely, your money could potentially
go a long way. It's really all about putting a plan in
place and sticking to it.
These tips may help get you started.
Get a Jump on All Your Goals
You've read in these pages before about the value
of starting early on retirement savings, even if you
can only invest a little each month. The same goes
for college savings and other goals. Even a $100
a month investment for college could potentially
leave you with about $16,470 in 10 years, assuming
an average annual return of 6% -- a good start that
you can build on as your income grows.
Set Aside a Slice of Pay Hikes
As your income rises over the course of your career,
it's easy to slip into a pattern of "living up" to your
means; that is, spending that extra pay you didn't
have before on daily living expenses. Instead,
consider setting a quota for yourself: Earmark a
predetermined portion of every pay hike for your
savings goals. You may want to apply the same rule
to other windfalls, like an unexpected bonus or tax
return.
Use the Right Tools for the Job
Just as your employer-sponsored retirement plan
offers a tax-advantaged opportunity to set aside
money for your later years, certain vehicles, such
as 529 college savings plans, provide potentially
attractive tax breaks for college savers. Minimizing
the taxes you have to pay up front on investments
and earnings gives you the chance to make the
most of compounding over time.
Finally, whatever your particular financial goals may
be, keep in mind that minimizing debt is a timeless,
indispensable strategy for establishing personal
financial balance.

MAIN STREET LENDING
PROGRAM DETAILS
As a result of the Coronavirus Aid, Relief & Economic Security (CARES) Act, the Federal Reserve has
created the Main Street Lending Program to provide a total of $600 billion in financing for small and
medium-sized businesses. Here’s what you need to know to check eligibility and get ready to apply.
For more information visit https://www.uschamber.com/report/guide-the-main-street-lending-program
1 AM I ELIGIBLE? 3 HOW MUCH CAN I BORROW?
In order to be eligible for a Main Street Lending Program loan, a
business must:
• Have been established before March 13, 2020
• Not be an ineligible business according to Small Business
Administration (SBA) regulations
• Have no more than 15,000 employees or 2019 annual revenues of
no more than $5 billion
• The SBA’s affiliation rules apply in determining the employee and
revenue count
• In counting employees, the Main Street Lending Program advises
businesses to refer to SBA regulations by counting all full-time,
part-time, seasonal, or otherwise employed persons, excluding
volunteers and independent contractors
• Have been created or organized in the U.S. with significant
operations in and a majority of its employees based in the U.S.
All of the above criteria must be met in order to be eligible.
2
HOW DO I APPLY?
Eligible borrowers must submit an application and other
documentation required by an eligible lender. Borrowers should
contact lenders for more information on whether the lender plans
to participate in the program and for more information on the
application process. Additional information about the application
process will be announced in the future.
Eligible lenders are U.S. federally-insured depository institutions
(including banks, savings associations, and credit unions) as
well as any U.S. branch or affiliate of a foreign bank. Nonbank
financial institutions are not considered eligible lenders at this time,
although the Federal Reserve is considering options to expand this
list in the future.
The Main Street Lending Program offers three different secured or unsecured 5-year
term loan options set at an adjustable rate of LIBOR (1 or 3 month) plus 300 basis
points with principal deferred for two years and interest payments deferred for
one year for eligible borrowers. All loans under the Main Street Lending Program
must permit prepayment without penalty. All loans are made by private financial
institutions but backed by the Federal Reserve.
Term
MAIN STREET LENDING PROGRAM LOAN OPTIONS
Main Street
New Loans
Main Street
Priority Loans
EBITDA: Earnings before interest, tax, depreciation and amortization
LIBOR: London Interbank Offer Rate, a common benchmark interest rate index
Main Street
Expanded Loans
Minimum Loan Size $250,000 $250,000 $10,000,000
Maximum Loan Size
Risk Retention
by Lender
Payment (year one
deferred for all)
Lesser of $35M or
4x 2019 adjusted
EBITDA
Lesser of $35M or
6x 2019 adjusted
EBITDA
5% 5% 5%
Years 3-5:
15%, 15%, 70%
Years 3-5:
15%, 15%, 70%
Lesser of $300M, 35% of
outstanding and undrawn
available debt, or 6x 2019
adjusted EBITDA
Years 3-5:
15%, 15%, 70%
Rate LIBOR + 3% LIBOR + 3% LIBOR + 3%
Lender Transaction
Fee (May be paid by
Borrower)
Borrower
Origination Fee
5 years 5 years 5 years
100 basis points of
principal loan amount
100 basis points of
principal loan amount
100 basis points of
principal loan amount
100 basis points of
principal loan amount
75 basis points of
principal loan amount
75 basis points of
principal loan amount

196 S Fir Street, Suite 140, Ventura, CA 93001
integritywealthadvisors.info | (805) 947-0202
Data / statistics cited are provided by the Federal Reserve Bank of St. Louis.
The S&P 500 Index or the Standard & Poor's 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P
500 is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading. Investors cannot
invest directly in an index. Note: Investors cannot invest directly in an index. These unmanaged indices do not reflect management fees and transaction
costs that are associated with most investments.
The MSCI World ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries* – excluding the United States.
With 1,012 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
The Barclays Capital U.S. Aggregate Bond Index is the most common index used to track the performance of investment grade bonds in the U.S.
Vanguard research study; Source: Francis M. Kinniry Jr., Colleen M. Jaconetti, Michael A. DiJoseph, and Yan Zilbering, 2014. Putting a value on your value:
Quantifying Vanguard Advisor’s Alpha. Valley Forge, Pa.: The Vanguard Group.
Integrity Wealth Advisors, Inc. is a Registered Investment Adviser. This material is solely for informational purposes. Advisory services are only offered to
clients or prospective clients where Integrity Wealth Advisors, Inc. and its representatives are properly licensed or exempt from licensure. Investing involves
risk and possible loss of principal capital. No advice may be rendered by Integrity Wealth Advisors, Inc. unless a client service agreement is in place.