Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Seeking Short-Term Equilibrium While Adjusting for the Long Term: Much of the headlines and an economic soft patch has been due to temporary factors, so demand-growth fundamentals are likely to reassert themselves.
  
  
• Market View — Back-to-Basics: Revisiting Inflation Fundamentals: Stalling progress has reinforced the view that inflation, not deflation, may be a bigger challenge in the next decade.
  
  
• Thought of the Week — A Year Three Itch for the Bull Market?: History suggests year three of a bull market may be a choppier environment than earlier phases, but that does not necessarily spell out the end of the uptrend.​