Small Cap Value Fund Third Quarter 2017

U.S. economic growth continues to be solid as financial conditions have eased this year. Further evidence of wage acceleration at the lower end of the pay scales emerged. The Bureau of Labor Statistics showed the 10th decile wages up 3.6%, which is three times the rate of just 2 years ago. Median wages are up 3.2%, which is double 2014. Heavy baby boomer retirements at the upper end of the pay scale may be disguising the overall wage picture. This should put upward pressure on Fed Funds rates.