Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizin,g and engaging with compelling content multiple operating systems, devices, and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).

Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Treasury bond yields have been rising in recent weeks on concerns over stubbornly high inflation. Meanwhile, corporate bond yields have risen, but not as rapidly as Treasury yields, as investors remain optimistic about the potential for economic and profit growth -- and thus lower default rates. As a consequence, spreads between corporate and Treasury bond yields have narrowed. The spread between AAA-rated corporate bonds and 10-year government bonds in February was 82 basis points (bps), below the 35-year average of 123 bps and down 20 bps from December. The gap between the government 10-year bond yield and a BAA-rated bond (still investment grade) in February was 156 basis points, below the historical average spread of 230 bps and down about 25 bps in the past two months. We watch these spreads closely for a few reasons. First, from an asset-allocation standpoint, tight corporate bond spreads signal that corporate bond prices are above historical fair value, and we may look to under-weight the segment in our model portfolios. Next, from a broad market standpoint, the changes in the spreads offer clues to the bond market's view of corporate financial strength, which appears to be improving given the narrowing spreads. This is important as the economy approaches a period of slower growth.