Conclusions and Investment Implications

• The Federal Reserve has already begun to exit markets without disrupting the economic progress.

• Housing appears to be stabilizing earlier and at higher levels than we expected

• Fiscal stimulus is a strong positive in 2010, but becomes a negative thereafter

• Significant uncertainties remain, but the near-term outlook is positive

• All of these factors, however, are set against a backdrop of deleveraging that has just begun

To read the full report: PULSE OF THE ECONOMY