David Bulteel

“The economic outlook and valuations suggest positive returns for equities and bonds over the next 12 months. However, the disparity between expected returns is low. The risks to a benign outcome for the economy are rising (higher interest rates) and some complacency is evident (takeover activity, narrow credit spreads). Cash yields offer more meaningful competition for investment flows and aggressive asset allocation is not advisable. The US economy should enjoy a soft landing and the global economy continues to generate healthy growth in corporate profits.”