Highlights from the week of May 10 – May 16, 2024.

In the current macroeconomic environment, we prioritize balance in our portfolios, favoring U.S. large cap equities and high-quality fixed income.

Our long-term return expectations for capital markets serve as key inputs into our strategic asset allocation process for multi-asset portfolios and provide context for shorter-term forecasting.

An unexpected shock in the banking sector has stress-tested the economy and policymakers. Both initially passed. But the impact on lending and credit conditions remains unclear and increases the likelihood of a mistake by the Fed going forward.

Weak global growth for the year ahead appears almost certain. The outlook for capital markets is anything but.