Market Summary

March 2015

After a challenging start to the year, the U.S. equity market rebounded strongly in February. The S&P¹ 500 Index, a measure of domestic large-cap stocks, surged 5.75%² during the month, one of its strongest monthly gains in recent years. And, in a reversal of much of 2014, non-U.S. developed stocks, as measured by the MSCI EAFE Index, outperformed its domestic counterparts with a 5.98% return. Emerging-markets stocks also had a good month, with the MSCI Emerging Markets Index returning 3.10%.

February was a challenging month for most high quality fixed income markets, however, as Treasury yields increased during the month. Remember, as yields rise, the underlying value of bonds tend to fall, creating a see-saw effect.

Crude oil continues to be of concern, as prices had been fluctuating near $50 a barrel for much of the month, only to see prices eventually fall to below $45. Many analysts are calling for oil to fall below $40, and maybe all the way down to $30 or even $25. This is something we will definitely be keeping an eye on. As I mentioned in previous newsletters, energy is considered a leading economic indicator, which means it gives us an idea of what to expect in the months ahead regarding economies and equity markets.

Our Management Philosophy

Limit downside risk and provide clients a reasonable rate of return over a market cycle.

With over five decades of combined money management experience in South Texas, you can be sure that Walter and Anthony Reyna have seen it all. This father-son pair built and developed Walter J. Reyna Inc. on the importance of hard work and strategic planning and continue to implement these core values in their business today.

The Reynas believe that wealth accumulation and protection are the result of exceptional planning, not luck. Visit our website to learn more.

Walter J. Reyna, Inc.

5315 North McColl Road

McAllen, Texas 78504

956.682.4196

Market Summary Continued

Coupled with falling oil, we have seen such devaluation of the euro (down to all-time lows) and other currencies globally, that it has made our U.S. dollar rise in an almost straight line upward. The strength of our dollar, while good for purchasing power, is not necessarily a good thing for the equity markets. A strong dollar makes our exports more expensive, which makes our goods less attractive for foreign buyers and this can cut into corporate profitability, the main driver, historically, of equity markets.

Even with these and other headwinds, U.S. markets pushed up to some new highs late in February. A pullback should be expected in March, but hopefully just a technical one that lasts a week or two. If this type of pullback is limited to what we have seen in December and January, we should see markets resume their upward trend the latter part of March and into April.

If the markets breach their technical support levels, we will need to consider adjusting our equity exposure. But for now, there will be no changes, as the bull market still remains intact.

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For more information about your portfolio performance, please refer to your personalized statements or contact us. Regulatory restrictions prevent us from reporting personalized performance data in this newsletter. See below for important disclosures.

Portfolio Insights

(1)The S&P 500 Index is representative of domestic markets and includes the average performance of 500 widely held common stocks. Individuals cannot invest directly in any index and unlike investments; the S&P 500 Index does not incur management fees, charges, or expenses. (2) All Statistical information, investment category determinations, and economic data retrieved from www.bloomberg.com. Past performance is no guarantee of future results and all investment strategies involve the risk of financial loss.

This publication is proprietary and limited to the sole use of Walter J. Reyna, Inc. clients. Client portfolios are designed for the moderate investor but are actively managed on a monthly basis and may not follow traditional risk adjusted asset allocation models. Walter J. Reyna, Inc. maintains full discretion over said accounts and manages as deemed necessary. Clients with questions about the fees associated with their discretionary advisory account should refer to their advisory agreement. The information contained herein is for illustration purposes only. It is not necessarily complete, does not include client directed investments, and its accuracy is not guaranteed by Walter J. Reyna, Inc. All clients should reference their periodic statements for accuracy. All clients needing additional information about holdings in the portfolio, including the objectives, risks, asset class and costs associated should refer to their respective prospectus. If you have received this communication in error, please notify us immediately by e-mail or telephone. Neither the information, nor any opinion expressed constitutes a solicitation nor investment advice, for the purchase of any future security referred to in the Advisory Newsletter. Investments offered through Registered Representatives of Lincoln Financial Securities Corporation, member SIPC. Lincoln Financial Securities Corporation and Walter J. Reyna, Inc. are not affiliated.

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