
In the 70’s, 80’s and 2000’s, 3 of the last 5 decades, a globally diversified equity strategy would have likely benefited investors more than a US S&P 500 strategy only.
In the long-run, equity markets are driven by corporate earnings and investor confidence, functions of economic growth and monetary/fiscal policy. However, at the midpoint of the year, 2018 reminds us that in shorter periods, other elements enter the equation.
Please note that we will be publishing a more formal Commentary and Outlook piece in the next couple of weeks, but we recognize you are meeting with clients and would like some color around the markets and our thoughts in the meantime. So, below are a few key market drivers from the first half and our resultant positioning.
After 2017, where all asset classes appreciated with record low volatility and with evidence that the global economic picture was brightening, we began 2018 commenting that our biggest worry was a lack of things to worry about.