Our base-case projection is that these policies will be implemented in an effective and timely manner, and their impact will reach full force next year. Discussions in Washington at the end of April were consistent with that outlook.
The recent behavior of profits also underlines the unusual nature of the rebound in equity prices and the possibility that the recent performance of the equity markets will have difficulty in being sustained. The level of equity prices would appear to envision substantially greater growth of profits than has been experienced of late.