Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Thoughts on U.S. Debt and Deficits: Real long-term interest rates have been rising over the past year as concerns about the sustainability of U.S. deficit spending lift risk premia on longer-term bond yields.
  
  
• Market View — Are Dividend Stocks Due for a Comeback?: Dividend stocks have faced stronger competition from the bond market amid some of the most attractive nominal and real U.S. Treasury yields in roughly two decades.
  
  
• Thought of the Week — Can the Equity Bull Continue To Run?: We believe that it can, especially considering that fundamentals have held up, market leadership is showing signs of broadening, and earnings are becoming more constructive.