Our model research indicates a negative outlook for European, Japanese and Emerging Market equities. U.S. equities remain overvalued despite the S&P 500 index decline of over 10% from its mid-February high. The model’s preference in fixed income continues to favor intermediate-term U.S. Treasuries. Gold and U.S. Treasuries provide the potential for upside opportunity and downside protection should the equity markets continue to sell-off.