Message: Volatile Markets, Casriel (EFTA00239158)

Message From: Casriel, Lyle Sent: 10/12/2018 1:16:18 AM To: 'Scott Borgerson' GMAX [- CC: Stackman, Scott I; Klein, Matthew ; McNamara, Sean [- Subject: Volatile Markets Attachments: A bull market resetting, not an ending.pdf Scott/Ghislaine, 1 I; Tomkiewicz, Jessica We are reaching out to let you know we are monitoring data and comments from a variety of sources on the dramatic sell off in equities. We have attached our CIO's responses and commentary here. Below are the basic take-aways: • The movement in interest rates is certainly getting most of the attention for the correction. There is a strong case for this argument as bonds become more attractive relative to stocks as well as the fact that the cost of capital for market participants increases as interest rates increase. • Tariffs can't be ignored and may be a contributor to the current weakness if prices rise as a result. • Growth equities, FANG stocks and technology in particular were hit the hardest (