In the second quarter investors enjoyed strong returns across the board in the capital markets, making year to date a very favorable experience for investors. However, returns are still not being generated primarily by growth, but by valuations. These valuations are driven by decisions around four factors: monetary policy, fiscal policy, trade issues and political concerns across the globe.

In fixed income, we keep advocating for a barbell approach. In the equity space, investors should look selectively for companies with high profitability and consistent earnings growth. Overall, an investor’s portfolio should be set up to both participate and defend in the current market environment.