Global stock markets are trading near their highs and holding steady since our last post, mid-summer. Bond prices have generally held their gains off their early year lows. Global economies continue to grow modestly.
As well, markets don’t seem to be reflecting much concern over confused expectations for tax reform or fiscal stimulus. Repatriation of overseas profits still seems to be an expectation.
Many are expecting an autumn pullback, and market sentiment indicators seem to be tipping towards some sort of modest correction. Right now it doesn’t feel like there’s any action to be taken, although it’s always important to be on the lookout for longer term shifting trends in the economy and markets.
We think broad diversification in and within asset classes is more important than it has been since the market bottom in early 2009.