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From: 
Sent: 
To: 
Subject: 
Paul Morris 
7/2/2019 4:24:45 PM 
jeevacation@gmail.com 
Capital Market Outlook 
Capital Market Outlook 
Chief Investment Office 
Capital Market Outlook from our Chief Investment Office 
delivers a balanced mix of macroeconomic insights and 
global market views, with in-depth analysis from the CIO's 
investment strategists and analysts. It offers timely 
commentary that can help you navigate markets and take 
advantage of emerging trends across the globe. 
This week's topics are: 
• Macro Strategy: Why 2%? — While Federal 
Reserve policy has always been focused on the goal of 
price stability, the specific meaning of price stability has 
been refined over the years from a general and non-
specified, vague concept to the current very specific 
quantitative definition of a 2% long-run average for the 
personal consumption expenditures deflator. We describe 
the evolution and rationale for the more specific target. 
• Global Market View: Global R&D: From Apollo, 
to Apple, to Alibaba? — The recent unfolding tech cold 
war between the U.S. and China will likely only accelerate 
the pace of spending on global research and development 
as the two parties vie for technological supremacy. China 
faces significant technological hurdles, while the U.S. 
needs to rethink and rebalance the role of public and 
private sector research and development spending. 
• Thought of the Week: A Golden Diversifier — 
Gold's recent outperformance versus the U.S. dollar has 
potentially triggered a bullish technical pattern. In our 
Paul Morris 
Managing Director 
Private Wealth Manager 
Merrill Private Wealth Management 
ONE BRYANT PARK 
STE 28TH FLOOR 
NEW YORK, NY 10036 
HOUSE OVERSIGHT 016801 
view, the market's expectation for looser monetary policy 
together with recent comments by President Trump 
implying a desire for a weaker greenback have been 
tailwinds. In addition to these drivers, we view gold as an 
appealing diversifier in light of elevated geopo

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