Elevated headline volatility the ‘new’ normal

Here's what we're thinking

Written by Lynn Healy-Goulet
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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