Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Groping In The Dark For Neutral: Signals from the economy and markets give little support for the Federal Reserve's belief that policy is restrictive, suggesting the neutral rate is much higher than the market believes.
  
  
• Market View — Foreign Demand For U.S. Assets Remains Strong and Should Remain So: Foreign investors have shown a remarkable penchant to “Buy America" over this century.
  
  
• Thought of the Week — The Investment Case for China Remains Challenging: Investors continue to think twice when it comes to China with an ongoing property crisis, depressed consumption demand and a less dynamic private sector.​