Financial Market Overview – June 2018
BY HAIG BATHGATE, JOINT CHIEF EXECUTIVE OFFICER & CHIEF INVESTMENT OFFICER
& ROBIN KYLE, INVESTMENT MANAGER
The past four months have provided a lot for investors to digest. The S&P 500 enjoyed its strongest quarter of earnings growth in more than eight years, while the Dow Jones experienced the largest intra-day fall in its history. The Federal Reserve raised interest rates, the Bank of England didn’t, and a historic summit between the US and North Korea was on again and off again too many times to count. The result has been unpredictable markets, with a strong run in April and early May bookended by periods of volatility.
Client portfolios held up well amidst the uncertainty. Uncorrelated assets helped to provide protection, while equity holdings rallied well in the recovery. However, the question to be addressed in this edition of the Financial Market Overview is whether the events of the previous four months should be sufficient to merit a change in our positioning.
What, if anything, has changed? And what does it mean for markets?