Most major global equity markets delivered positive returns over the quarter, in a post US election rally. Fixed income markets, conversely, saw a sharp sell-off. In our view, although market valuations appear to be higher than long term historical averages, they remain within reasonable ranges, given the low level of inflation and interest rates globally.
Most major global markets delivered positive returns with lower volatility compared to recent quarters. Although much of the performance was the result of a recovery from the short-lived Brexit sell-off at the end of the prior quarter, the global economy continues to grow, which we expect will result in rising corporate earnings over time.
The second quarter came to a chaotic close as the unexpected “leave” vote in Britain began the Brexit process. The past decade has been difficult and crisis filled, leading many to wonder what has changed and what, if anything, can we do about it?