Market Swings: Looking Beyond the Headlines” Hi, I’m Savita Subramanian, Head of U.S. Equity Strategy. Clients have been asking about the recent pickup in volatility that we’ve seen and the market’s softness. But what we’re seeing right now really isn’t that unusual. [LOWER 3 r d ] Since 1928, pullbacks of 5%+ in the S&P 500 have occurred, on average, 3 times per year. Source: BofA Merrill Lynch Global Research In fact, pullbacks of five percent or more happen on average about three times a year, going back to data from 1928 to now. So what we’re seeing right now might be expected, especially within the context of a broader bull market. Recall, the S&P 500 has already gone up by over 200% since 2009. While volatility can be unsettling, it always provides opportunities. And here, we recommend the global cyclical sectors of tech nology, industrials, and energy. [GRAPHIC] Global Cyclical Sectors  Technology  Industrials  Energy These are three sectors with healthy balance sheets, strong earning potential, but right now they’re trading at very attractive valuations, given the recen t market pullback. [GRAPHIC] Global Cyclical Sectors  Healthy balance sheets  Strong earnings potential  Attractive valuations Now these sectors might seem risky in a world where global growth is starting to flow, but most of our barometers suggest that g lobal growth is quite healthy and global cyclicals could fair quite well in that backdrop. 1 [LOWER 3 r d ] Consider high-quality companies that offer diversification along with growing dividends . We recommend owning high-quality companies with some global exposure that offer diversification as well as healthy and growing dividends. Finally, while a number of headline risks and noise continue to weigh on the markets, we remain positive on U.S. equities. 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