DECEMBER 2017 ECONOMIC OUTLOOK
The equity bull market on Wall Street continues to roll along. Will stocks continue to rise in 2018, or is a major correction looming? Bond yields have been trading at historically low levels for nearly a decade. Will the era of low bond yields continue, or will interest rates normalize, sending 10-year U.S. Treasury bond yields to well above 3%? With wholesale changes in the Federal Reserve Board coming in 2018, will the Fed continue on its moderate pace toward interest rate normalization or will the markets be surprised?