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Capital Markets: Cycle Model Based on data over the last 20 years as discussed in class, if the economy is declining and slowing (ISM PMI below 48 and falling) and inflation is high, you'd expect which asset class to perform BEST OF THESE CHOICES based on historical data and the model presented in class? Hint: See slides 16, 17, 27 and 28. The horizontal line of slide 28 in the charts is the 48 ISM PMI level. If the cycle lines (curved lines) in the graphis are going down, that means the ISM PMI is declining, and vice versa. Which phase on slide 28 corresponds to the inflation rate is shown on slide 27. Note: If the economy heads to a recession while we still have the high current rates of inflation, then this is the phase we are headed to in the future so this is a real example with real meaning. US Stocks (abbreviated SPX in the slides) US Government Bonds (abbreviated USGOV in the slides) MSCI Emerging Markets Equities (abbreviated MSCI EM in the slides) US REITs (abbreviated USREIT in the slides)