Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — The Loch Ness Monster of Fixed Income: We believe it’s implausible that short-term selling by a subset of investors could drive long-term valuations.
  
  
• Market View — Might European Exceptionalism Sustain U.S. Exceptionalism?: U.S. sectors primed to benefit from Europe’s rebound include capital goods, food and beverages, financials, transportation and a host of service activities.
  
  
• Thought of the Week — The Investment Case for China Remains Challenging: From ongoing import dependencies to company earnings to intellectual capital, the U.S. and China remain well entangled.