Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — All Eyes On U.S. Policies And Inflation: Long-unaddressed structural growth challenges in Europe and China, government debt burdens and growing trade tensions suggest persistent headwinds to the global expansion from much of the rest of the world.
  
  
• Market View — “Things are so good, it worries me" — Potential Headwinds in 2025: We outline five dynamics that could cause the bull to stumble: stickier-than-expected inflation, an uncooperative Congress, slower adoption of Artificial Intelligence, escalating U.S.-China tensions, and a surging federal budget deficit.
  
  
• Thought of the Week — Caught in the Crosshairs: Small-cap Profits Meet Policies in the New Year: While still an asymmetric trade risk to large businesses, small- and medium-sized businesses account for a third of total imports across our top three trading partners.