“We see today’s market as characterized by stretched valuations, deep complacency, and a host of looming risks. But we also know how hard it is to make macro forecasts. While we have significant concerns, we can also make a case that the U.S. economy will remain strong for some time, since corporate, consumer, and financial institution balance sheets are healthy. Bonds at today’s yields provide scant returns, so equities remain the only game in town…Top-down, we are seriously concerned. But bottom-up, looking at our holdings investment by investment, we see an attractive upside as well as a reasonably protected downside.”