Staying Invested

the drivers of our investment recommendations fall into two categories.

The first category consists of short- and intermediateterm metrics. Examples are current market valuations, market valuations of past peaks and troughs, corporate earnings over the next two years based on our expectations about economic growth and fiscal and monetary policy measures, and investment sentiment and impact on flow of funds into or out of equities.

The second category consists of long-term strategic investment insights that have led us to set a high hurdle for underweighting equities. Examples of these insights include the risk of underweighting equities too early, the benefit of strategies that overweight equities relative to strategies that both