1. February 2016 Outlook for Financial Markets Jack Ablin, CFA Chief Investment Officer (312) 461-7756 What to do Now? – Navigating Wall Street Volatility

2. Metrics Dashboard 2 February 2016 Despite the pullback and recovery, equities remain expensive.

3. Central Bank Policy Since the 1980s, the Fed has throttled economic growth by lowering the cost of debt. February 2016 3

4. Central Bank Policy 4 Easy money has done more for the financial markets than the economy. February 2016

5. Financial Engineering 5 Corporate buybacks have boosted EPS far in excess of net income. February 2016

6. Fiscal Policy Measures Infrastructure Immigration Education Corporate Tax Reform 6 February 2016

7. Investment Markets The pullback has made equity valuations incrementally more attractive. 7 February 2016

8. Investment Markets Add a 2.2% dividend yield and equities are forecast to return around 5% annually for the next three years. 8 February 2016

9. Investment Markets Momentum broke down last summer, prompting a risk reduction. 9 February 2016

10. Investment Markets Momentum has proven to be a useful risk circuit breaker. 10 February 2016

11. A majority of the country benefits from lower oil prices. Economy 11 February 2016

12. High confidence corresponds to spending. Economy 12 February 2016

13. Credit conditions are tightening as lenders require higher yields. Global Risks 13 February 2016

14. If crude falls back in line with natural gas, a barrel of oil could trade in the teens. Global Risks 14 February 2016

15. Investment Markets Here’s why we’re not in the financial crisis camp. 15 February 2016

16. Asset Allocation Positioning 16 February 2016

17. Investment Performance 17 February 2016

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