Capital Markets Summer 2020

I

Consumption → Savings Lasting Change

I • We believe consumers are likely to be increasingly cognizant of economic crises and may save more as a result • Businesses may do the same by retaining more of their cash flow and returning less to shareholders in the form of dividends and share repurchases

II

U.S. Personal Savings as a % of Disposable Income

25%

III

While it will likely moderate, the savings rate may remain higher than it has been

20%

15%

IV

10%

5%

V

0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

VI

Source: U.S. Bureau of Economic Analysis. Three-month moving average through May 2020.

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