From: "Paul V. Morris"

From: "Paul V. Morris" To: Jeffrey Epstein <[email protected]> Subject: CIO Outlook — Fixed Income Mid-year Outlook Date: Wed, 30 Aug 2017 13:29:25 +0000 PC, 1O Outlook Fixed Income Mid-year Outlook At the beginning of theyear, we advised investors to be cautiously optimistic for low-to-mid-single-digit returns with rising rates. We continue to believe investors should remain underweight fixed income relative to equities. However, we still see fixed income as having a place in a diversifed portfolio, and we have slight overweights in select sectors, including investment grade and municipals. Learn more in the new CIO Monthly Letter, Fixed Income Mid-year Outlook. We also encourage you to visit ml.com/insights for our latest thinking on long-term investment themes. Sincerely, The Morris Group Private Wealth Manager The Morris Group Private Wealth Manager One Bryant Park, 28th Floor New York, NY 10036 http://www.pwa.ml.comithernorrisgroup The investments or strategies presented do not take into account the investment objectives or financial needs of particular investors. It is important that you consider this information in the context of your personal risk tolerance and investment goals before making an investment decision. Investments have varying degrees of risk. Some of the risks involved with equities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Investments in foreign securities involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets. Bonds are subject to interest rate, inflation and credit risks. Investments in high-yield bonds may be subject to greater market fluctuations and risk of loss of income and principal than securities in higher-rated categories. Income from investing in municipal bonds is generally exempt from federal and state taxes for residents of the issuing state. While the interest income is tax exempt, any capital gains distributed are taxable to the investor. Income for some investors may be subject to the federal altemative minimum tax (AMT). EFTA00643834 Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets. Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and other subsidiaries of Bank of America Corporation (BofA Corp.). The Private Banking and Investment Group is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Group's Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill Lynch's obligations will differ among these services. Investments involve risk, including the possible loss of principal investment. The banking, credit and trust services sold by the Group's Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America. N.A.. Member FDIC, and other affiliated banks. Investment products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value MLPF&S is a registered broker-dealer, registered investment adviser. Member SIPC and a wholly owned subsidiary of BofA Corp. O 2017 Bank of America Corporation. All rights reserved. AR65LR45 If you prefer not to receive future e-mails related to this topic click here. EFTA00643835