We believe all of these trends are long-term positives for the equity markets. Investors need to weather a number of near-term risks, and we think caution is warranted considering how far stock prices have risen since mid-February. The medium- and long-term outlook for equities remains bright, however, especially if we see improvements in U.S. consumer spending, global manufacturing and corporate earnings.
1Source: Morningstar Direct, as of 6/10/16
2Source: Cornerstone Macro
3Source: Goldman Sachs
4Source: Bloomberg and Morningstar Direct
Bob Doll is chief equity strategist at Nuveen Asset Management.