Capital Markets: Winter 2019

Key Observations

• While pessimism abounds and equities are discounting a significant economic slowdown, we believe stocks are likely to post solid long-term returns , particularly relative to other asset classes • Monetary conditions have tightened but we believe equities and the economy should be able to absorb the moderate increase in interest rates • Trade policy issues are weighing on global economic growth and while there could be more pain to come, we believe the powerful trend toward lower tariffs and more trade will ultimately prevail

Table of Contents

Sanguine About Slowing

Pages 3-8

Performance

Pages 9-14

Fundamentals

Pages 15-23

Valuation

Pages 24-28

Page 2