Capital Markets: Observations & Insights

Key Observations

• While the U.S. economic expansion is relatively old compared to history, multiple data points suggest that growth should continue, making the current cycle the longest in U.S. history • Monetary conditions are tightening but stocks and the economy should be able to absorb moderate increases in interest rates • Business spending is accelerating and driving the broader economy, bolstered by strong earnings growth, tax reform, solid business confidence, and accommodative lending conditions

Table of Contents

The Longest Expansion

Pages 3-8

Performance

Pages 9-16

Fundamentals

Pages 17-23

Valuation

Pages 24-28

Page 2