Capital Markets: Observations and Insights Autumn 2019

Key Observations and Themes

Lending vs. Owning With interest rates so low, stocks look attractive relative to bonds. We believe equities will outperform fixed income over the long term. Accelerating Innovation Innovation is speeding up and changing the way the economy behaves, increasingly driving stock performance. Style Wars Powerful structural forces have caused Growth to diverge from Value. Investors looking for a reversion to the mean may be disappointed. Reframing Risk Traditionally accepted metrics are part of an imperfect shorthand intended to capture fundamental risk; focus on fundamental durability. Economic Good, Bad & Ugly Structurally, we believe the U.S. economy is sound but policy tailwinds are confronting weak confidence and slowing international growth.

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Additional Insights A framework for handicapping the U.S. presidential election and more.

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