Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Fed Policy Still Appears Stimulative: While Equity sector outperformance tilted more defensive recently, it has largely remained consistent with late-cycle conditions and a still stimulative Federal Reserve policy.
  
  
• Market View — The Good, The Bad and On Watch: Our more constructive portfolio posture reflects a strengthening fundamentals backdrop, the effect of tighter financial conditions and geopolitical shocks.
  
  
• Thought of the Week — Best to Hold Your Political Nose When Investing—We Explain: Uncertainty and volatility in an election year are not uncommon and we are watching as it creeps into the market as we get closer to election day.