Charter Trust Company

2011 Economic Outlook:

A Global Symphony

The Economy

is preparing to take off

We’re out of the battle.

And moving into the … ?

Positives:

Positives:

• Profits

Positives:

• Profits

• Productivity

Positives:

• Profits

• Productivity

• Policy

The result has been a

record level of

corporate cash

Downers

Downers

• Debt

Downers

• Debt

• Deflation

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

Core CPI Inflation

Downers

• Debt

• Deflation

• Depression

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

Core CPI Inflation

With the D’s and the P’s at

odds:

With the D’s and the P’s at

odds:

• Volatility

S&P 500 Index 2000-2010

With the D’s and the P’s at

odds:

• Volatility

• Crises

S&P 500 Index 2000-2010

With the D’s and the P’s at

odds:

• Volatility

• Crisis

– Danger

– Opportunity

Equities – Volatility

Equities – Volatility

MSCI Index 1985 - 2010

Emerging Market Growth

Emerging Market Growth

China: Three Gorges Dam

Brazil: Bovespa Index

US Market:

US Market: Growth

US Gross Domestic Product

European Market:

European Market: Volatility

European Market: Volatility

Germany: StrongNetherlands: StrongFrance: ModerateItaly: ModerateFinland: ModerateSpain: WeakPortugal: WeakIreland: WeakGreece: Crisis

Bonds:

Bonds: Danger

Short rates are stuck.

Long rates are too low.

Rates will rise, we just don’t

know when.

Decoupling is over

The World Economy Is One

“We must hang together, or we

will hang separately.”

BRIC Growth

Triad Stability

USEurozoneJapan

Together: 60% of World Economy

Global progress