Elevated headline volatility the ‘new’ normal

Here's what we're thinking

Written by Nitin Manohar
April 24, 2018

Over the past few weeks, market sentiment has oscillated sharply between strong bouts of pessimism and optimism brought on by concern over a steady stream of troubling issues (brewing trade wars, geopolitical tensions, U.S. Congressional hearings on data mining, U.S. political uncertainty, etc.). However, solid underlying fundamentals have provided a firm foundation for the long-term uptrend in global markets, in our view. These fundamentals include global economic growth holding near 7-year highs, fiscal policy stimulus supporting the economic expansion this year and next while monetary policy is being tightened at a very modest pace, and commodity prices having recovered to 3-year highs.

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