Capital Markets: Observations & Insights

Key Observations

• Monetary conditions are tightening but stocks and the economy should be able to absorb moderate increases in interest rates • Business spending has begun to accelerate and outpace the broader economy, driven by strong earnings growth, tax reform, solid business confidence, and accommodative lending conditions • Leading indicators suggest the economy will continue to expand and corporate profits will continue to rise

Table of Contents

Party Without the Punch?

Pages 3-10

Performance

Pages 11-16

Fundamentals

Pages 17-23

Valuation

Pages 24-27

Page 2