Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Business Cycle Extended by Still Abundant Liquidity and Strong Profits: Conflicting economic signals persist while hopes of a soft landing and prospects of lower interest rates have reinvigorated risk assets.
  
• Market View — In the Race for Foreign Investment, the U.S. Leads, China Lags, and Why It Matters: The emerging foreign direct investment differential between the two nations could be a deciding factor in which nation presents the most attractive long-term investment opportunities to investors.
  
• Thought of the Week — Markets Cheer for the Holidays: As we turn the calendar page, weakness on concerns that fundamentally do not alter the investment terrain or growth curve are buying opportunities from our perspective.