We project solid global economic growth into 2018. The US should continue to raise rates gradually, while tapering of asset purchases moves onto the European Central Bank's agenda in the second half of this year.
A review of last month’s market-moving events across countries and asset classes.
Historically, we have not been able to find many interesting, really high quality companies in China which has largely centered on our discomfort with corporate structures, governance and alignment between majority and minority shareholders. While this continues to be the case, recent trips by members of the team have certainly provided plenty of food for thought.
Illinois’s fiscal woes, shaped by years of political gridlock, culminated in a rating downgrade to BBB– on June 1. A downgrade to junk is possible. But Illinois could recover its footing, should legislators muster the political will to work together. We know it can be done, because of California’s example.
US growth stocks surged in the first half of 2017, fueled by mega-cap technology companies. Active managers of growth portfolios have done especially well, reinforcing the case for stock-picking strategies.
With a new majority in the French National Assembly, President Macron has increased the chances parliament will pass his ambitious reforms aimed at labor and economic growth. But France also faces some hard fiscal realities that may take some time to fix.
Munis sold off in the wake of Trump’s election victory, but have been clawing their way back up as investors glean the difficult paths ahead for tax reform and infrastructure spending.
On the surface, passive municipal ladders seem like a sensible investment. Simple. Easy. Cheap. But the numbers don’t lie.
A review of last month’s market-moving events across countries and asset classes
It would be pleasing to see a month go by without a terrorist atrocity somewhere in the world but, sadly, May was not going to be one of those months. The Manchester abomination is just one more in a string of similar attacks. It is difficult for the authorities anywhere to protect citizens from extremists who operate alone, wear no uniform and are prepared to die for their beliefs. There will, undoubtedly, be many more unhappy months.