Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Deficits and the Dollar: An Inflection Point: Forces for bigger U.S. deficits, both trade and fiscal, are expected to dissipate with a lower dollar, tariffs and the budget deal moving through Congress.
  
  
• Market View — Holding Steady: Some Thoughts About the U.S. Consumer and U.S. Dollar: The health of both U.S. consumer and the dollar variable matters tremendously to the world economy and global earnings—and, fortunately, are holding steady despite recent policy uncertainty and market volatility.
  
  
• Thought of the Week — Tariffs Are No Small Matter for Small Businesses: The recent tariff tumult has driven uncertainty among small businesses to near-record highs as companies struggle to make decisions vis-à-vis capital expenditures plans, inventories and hiring.